Finding the best forex brokers for beginners is hard because there so many different types of accounts and brokers to choose from. It can be confusing when you are first starting out. Don’t worry though. We have your back and will help you pick the right broker to start making trades right away.
How to Pick a Beginner Forex Broker
You need a forex broker in order to trade forex. No question about that. There are 3 most basically important things to look for in a forex broker:
Legitimacy and Reputation: It’s very important that the forex broker has a good reputation in terms of its legitimacy so that you don’t send your money to a fly-by-night operation.
Trading Platforms: most forex brokers offer the widely used MetaTrader 4 (MT4) platform, some others offer their own proprietary trading platform, some offer both. All the platforms are free to use. No forex brokers charge a platform fee. Most forex brokers offer a free demo account for you to paper trade and get familiar with the platforms.
Pricing: commissions and fees.
| Top Brokers | Minimum Deposit | Max Leverage | Regulations | |
|---|---|---|---|---|
|
$200 | 1:30 | ASIC, CySEC, FCA, MiFID | VISIT BROKER 68% of retail CFD accounts lose money. eToro USA LLC does not offer CFDs, only real Crypto assets available. |
 |
$100 | 1:400 | MiFID | VISIT BROKER |
 |
$50 | 1:200 | IFSC | VISIT BROKER |
All of the beginner forex brokers we reviewed below are legitimately reputable institutions. With that in mind, you can focus on what they have to offer and which one offers what you need and you get started the quickest, with the least hassle. Let’s jump in and look at some of the top-rated forex brokers for beginner traders.
Top Beginner Forex Brokers Reviewed in 2020
Here’s a list of the best forex brokers for beginners who want to start trading and making money in 2020.
Forex.com
Forex.com, established in 2001, is part of GAIN Capital, funded in 1999, a New York Stock Exchange listed public company based in the US.
Forex.com has two different desktop trading platforms you can choose from. Their own in-house desktop platform as well as the MetaTrader 4 (MT4) desktop trading platform, along with mobile and tablet trading apps. They also have web (browser) based trading platform.
Forex.com has one of the easiest interfaces to understand and help you start trading from day one. That’s why we rate this as the top beginner forex broker account.
Account Stats
What Forex.com offers in forex trading?
- Minimum deposit: Forex.com has a very low minimum initial deposit of just $100 USD.
- Base Currencies: Forex offers various currencies depending on your country of residence as your account’s base currency.
- Minimum lot sizes for forex trading: you can trade as small as 0.01 lots (just 1% of the full lot).
- Funding options: you can fund your account with:
- bank transfer (ACH for US traders)
- credit/debit cards
- PayPal
- Commissions and fees: like most other forex brokers reviewed here, Forex.com doesn’t charge commissions or fees other than the spreads of the currency pairs you trade. The spreads are the normal spread charged by most other brokers. Not higher, not lower.
- Trading platform: they do offer MT4, mobile/tablet apps and web-based trading platforms, as well as their own in-house trading platform.
- Free demo account: Forex.com offers a free demo account for 30 days for you to get familiar with their trading platforms.
Pros
- Low minimum funding requirements and multiple funding methods
- Very beginner friendly with room to grow as you grow
- Offers the MT4 platform, if you don’t like their in-house platform
- Well invested in technologies, speedy executions and high server uptime.
- Generally low forex trading costs and low non-trading related fees
- Used by all kinds of forex traders, from beginners to veteran traders
Cons
- You must choose which platform to use when opening your account, it can’t be changed once the account is open.
- Their in-house trading platform can be less user friendly
- You need to open another demo account (with a different email) if you want to try out a different platform
Bottom Line
Forex.com is a great forex brokers, popular among all kinds of forex traders. It’s a forex broker where you can start and where you can grow. This is probably the best forex account for beginners.
IG Group
IG Group is another well established (since 1974) forex broker with excellent reputation. Headquartered in the UK, IG has localized operations in many different countries around the world, including the US.
IG offers the widely used MetaTrader 4 (MT4) as the main desktop trading platform, along with mobile and tablet trading app. They also offer a web based trading platform.
Account Stats
What IG offers in forex trading?
- Minimum deposit: IG has no minimum initial deposit requirements if you fund your account via bank transfer (see below Funding options). You can deposit as little as $50 to fund your account and start trading.
- Base Currencies: IG offers various currencies depending on your country of residence as your account’s base currency.
- Minimum lot sizes for forex trading: you can trade as small as 0.01 lots.
- Funding options: IG offers many different ways you can fund your account:
- bank transfer (ACH for US traders)
- credit/debit cards (minimum $250 required for this option)
- eWallet types of funding options including PayPal
- Commissions and fees: like most forex brokers, IG charges no commissions or fees other than the spreads of the currency pairs you trade. IG’s spreads are also the industry norm (not higher, nor lower) compared to other brokers (except for CFD brokers, see below)
- Trading platform: they offer MT4, mobile/tablet apps and web-based trading platforms.
- Free demo account: you can open a free demo account and paper trade for 4 weeks to get familiar with their trading platforms.
Pros
- Low minimum funding requirements and multiple funding methods
- Very beginner friendly with room to grow as you grow
- Offers the MT4 platform, which is widely used by all kinds of forex traders
- Well invested in technologies, speedy executions and high server uptime.
- Generally low forex trading costs and low non-trading related fees
Cons
- Hardly any
Bottom Line
IG is one of the best forex trading platforms for beginners where, not only you can start your forex trading journey, but also for you to grow.
eToro
eToro is an Israli fintech company, started in 2007 as a “social trading” platform catering to beginning forex traders.
They pioneered the “social trading” concept with their CopyTrader feature, where you can simply just copy the trades of other traders of your choosing. You do so by searching the platform for other “social investors” (ranked by performance), and allocate a certain amount of funds to let the platform do the “copy trading” for you.
A word of caution though. While the CopyTrader feature may sound very good, it is also a double edged sword. It can be a good learning tool, but the reality is that you will be disappointed if you think letting a machine automatically copy other “successful” traders’ trades is an easy way to make money.
eToro has their own platform which is 100% browser-based. They also have mobile trading apps you can down to your smartphones and tablets.
Only real cryptos are available for US customers.
Account Stats
What eToro offers in forex trading?
- Minimum deposit: eToro has a minimum initial deposit requirements of $50, except if you choose to fund your account via bank transfer (see below Funding options), in which case, a minimum deposit of US$500 is required. This may vary depending on your country of residence.
- Base Currencies: eToro only offers USD as base currency for all accounts. This can be costly if your main currency is not USD as you will be affected by exchange rates in the form of a fee every time you make a deposit to and withdraw from your eToro account.
- Minimum lot sizes for forex trading:
- Stocks and ETFs – $10
- Crypto – $10
- Currencies – $1,000
- Commodities – $1,000
- Indices – $1,000
- Funding options: eToro offers a wide range of funding options:
- bank transfer (a minimum of $500 is required if you choose this option)
- credit/debit cards
- eWallet types of funding options including PayPal, Neteller, Skrill, Webmoney and several others.
- Commissions and fees: eToro’s spreads are wider than most other forex brokers, so your cost of trading is higher vs. other brokers. They also charge a withdraw fee every time you make a withdraw.
- Trading platform: they offer their own trading platform with built in “CopyTrade” feature.
- Free demo account: all eToro account has a “live trading” mode and a “practice trading” mode, which you can switch back and forth. You can start paper trading in the practice mode as soon as you open your account and for as long as you want. The live trading mode will only be turned on after you deposit some funds into your account.
Pros
- Low minimum funding requirements and multiple funding methods
- CopyTrader feature useful for learning
- Trading platform straightforward and easy to use
Cons
- Higher forex trading cost
- Only USD as the sole base currency for all, which incurs
- Multiple non-trading related fees when moving your money in/out of your eToro account.
Bottom Line
eToro may be a place for you to get your feet wet in trading forex starting with as little as $50, unfortunately, it is not a place to be if you have more ambitious goals as a serious forex trader.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Saxo Bank
Saxo Bank is Danish forex broker with more than two decades in the business (since 1992). It’s also a fully licensed European banking institution.
They offer their own proprietary trading platform that is completely free to use if you only trade forex (no data fees or clearing fees). MT4 trading platform is not offer here. They do not accept US citizens or residents.
Account Stats
What Saxo Bank offers in forex trading?
- Minimum deposit: US$10,000. This is one of the highest minimum initial deposit requirements among the brokers reviewed here.
- Base Currencies: they offer many currencies for you to choose from as your account’s base currency.
- Minimum lot size for forex trading: you can trade as small as 0.01 lots (just 1% of the full lot).
- Funding options: they offer two ways you can fund your account: bank transfer and credit/debit cards
- Commissions and fees: no commissions or fees are charged if you only trade forex, other than the spreads of the currency pairs you trade. Their spreads are industry norm (not higher, nor lower) compared to other brokers (except for CFD brokers, see below)
- Trading platform: they only offer their own proprietary desktop trading platform, along with mobile trading app and a web (browser) based platform.
- Free demo account: you can open a free demo account and paper trade for 20 days to get familiar with their trading platform
Pros
- Well invested in technologies to ensure speedy executions and servers uptime.
- Feature rich trading platform that you can customize, capable of algorithmic trading.
- Good customer support
Cons
- High minimum initial deposit requirement
Bottom Line
Saxo Bank is a good broker for more advanced traders, who can take advantage of the many features offered by their trading platform. It is not for beginning forex traders.
CMC Markets
CMC Markets, a UK based financial services company established in 1989, it’s listed on the London Stock Exchange.
CMC Markets offers MetaTrader 4 (MT4) desktop trading platform, along with mobile and tablet trading apps. They also have web (browser) based trading platform. They also have their own in-house platform.
One notable thing about CMC Markets is that they are primarily a CFD (Contract For Difference) and Spread Betting broker. All trading in forex currency pairs are by means of CFDs. All your orders, be it buy or sell, are filled in house by CMC Markets themselves (your orders were never transmitted outside to 3rd party to fill).
They do not accept US persons.
Account Stats
What CMC Markets offers in forex trading?
- Minimum deposit: CMC Markets has no minimum initial deposit requirements. You can deposit any amount to start trading.
- Base Currencies: Forex offers various currencies depending on your country of residence as your account’s base currency.
- Minimum lot sizes for forex trading: you can trade as small as 0.01 lots (just 1% of the full lot).
- Funding options: you can fund your account with:
- bank transfer
- credit/debit cards
- Commissions and fees: CMC Markets doesn’t charge commissions or fees other than the spreads of the currency pairs you trade. As a CFD broker, CMC Markets fill all their orders in house, as such their spreads are generally a little bit lower than the normal spread charged by other brokers.
- Trading platform: they offer own in-house as well as MT4 trading platforms, along with mobile/tablet apps and web-based trading platform.
- Free demo account: CMC Markets offers a free demo account that you can paper trade for as long as you want.
Pros
- Low minimum funding requirements and multiple funding methods
- Offers the MT4 platform as a choice
- Generally lower forex trading costs vs. other forex brokers
- You will be trading forex CFDs. Some traders love trading CFDs
- Good that they have free demo account so you can try it out to see for yourself
Cons
- You will be trading forex CFDs, some traders dislike trading CFDs
- You have to try it out to see for yourself if trading forex CFD is for you.
Bottom Line
CMC Markets is for those who fully understand trading CFDs. For others, there are better forex brokers to choose from (read till the end of this article to see our recommendations).
XTB
XTB is a Polish company established in 2002, now they are a member of the Warsaw Stock Exchange. Registered and regulated in Belize, XTB has localized offices in the UK and most other European countries.
Like CMC Markets, XTB is primarily a CFD broker. So forex is traded through forex CFDs.
XTB offers two main desktop trading platforms to choose from: their in-house platform and MT4, along with mobile and tablet trading apps. They also have web (browser) based trading platform.
Account Stats
What XTB offers in forex trading?
- Minimum deposit: very low, depending on your country of residence, ranging from no minimum to $250 minimum.
- Base Currencies: XTB offers various currencies depending on your country of residence as your account’s base currency.
- Minimum lot sizes for forex trading: you can trade as small as 0.01 lots (just 1% of the full lot).
- Funding options: you can fund your account with:
- bank transfer
- credit/debit cards
- Various e-Wallets (depending on your country): PayPal, Paysafe (Skrill), Neteller, SafetyPay
- Commissions and fees: XTB doesn’t charge commissions or fees other than the spreads of the currency pairs you trade. The spreads on forex are the normal spread charged by most other brokers. Not higher, not lower.
- Trading platform: they do offer MT4, mobile/tablet apps and web-based trading platforms, as well as their own in-house trading platform.
- Free demo account: XTB offers a free demo account for 4 weeks for you to paper trade $100k virtual funds.
Pros
- Low minimum funding requirements and multiple funding methods
- Offers the MT4 platform as a choice
- Like CMC Markets, you will be trading forex CFDs with XTB. Some traders love it.
- Good that they offer 30-day free demo account so you can try it out
Cons
- Some traders hate trading CFDs.
- You have to try it out to see for yourself if trading forex CFD is for you.
Bottom Line
Like CMC Markets, XTB is for those who fully understand trading CFDs. For others, there are better forex brokers to choose from (read till the end of this article to see our recommendations).
Plus500
Plus500CY Ltd, owned by Plus500 Ltd, is an Isreali company founded in 2008. Registered and regulated in Cyprus, Plus500 also has localized offices in the UK and most other European countries. Plus500 Ltd is listed on the London Stock Exchange.
Along with CMC Markets and XTB, Plus500 is another reputable CFD broker, all three are popular with Europe and Asia based CFD traders.
For trading platforms, Plus500 only offers their own in-house desktop trading platform, along with mobile trading apps and a web-based trading platform. They don’t offer MT4 platform
Account Stats
What Plus500 offers in forex trading?
- Minimum deposit: varies depending on the funding method you choose, $/€/£100 for credit/debit cards and eWallets, and $/€/£500 if you choose bank transfer
- Base Currencies: Plus500 offers various major currencies for you to choose as your account’s base currency.
- Minimum lot sizes for forex trading: you can trade as small as 0.01 lots (just 1% of the full lot).
- Funding options: you can fund your Forex.com account with:
- bank transfer
- credit/debit cards
- PayPal, Skrill
- Commissions and fees: Plus500 doesn’t charge commissions or fees other than the spreads of the forex CFD you trade. The spreads Plus500 offers are generally lower than other forex brokers. They will charge an “Inactive Fee” for US$10 per month if you fail to login to your account for 3 consecutive months and you still have more than US$10 balance. You can simply login to your account at once every 3 month to avoid the fee.
- Trading platform: they only offer the in-house trading platform, along with mobile trading apps and a web-based trading platforms.
- Free demo account: Plus500 offers a free demo account for you to paper trade for as long as you need to get familiar with their platforms.
Pros
- Low minimum funding requirements and multiple funding methods
- Their in-house platform is rather easy to use
- Generally low forex trading costs and low non-trading related fees
- You will be trading forex CFDs. Some traders love it.
- Good that you can paper trade a demo account for as long as you want to see for yourself
Cons
- No MT4 trading platform, their in-house platform is limited in charting capabilities
- You trade forex CFDs. Some traders hate it.
- You have to try it out to see for yourself if trading forex CFD is for you.
Bottom Line
Like CMC Markets and XTB, Plus500 is for those who fully understand trading CFDs. For others, there are better forex brokers to choose from (read till the end of this article to see our recommendations).
Common Beginner Forex Broker Questions
Can I trade forex without a broker?
No, you can’t. You have to have a broker to facilitate any traders. This of the broker like the middle man who connects you to another buyer or seller. Without the connection, you will never be able to meet the person who you are trying to transact with. There are also more legal reasons for brokers as well, but you get the point.
Can you get rich by trading forex?
Mathematically speaking, the answer is yes, you can get rich trading forex. Most traders do not get rich trading forex however. It’s more common for traders to make a good living trading forex and use it as a stepping stone to build wealth.
Do you pay tax on Forex?
In most cases, yes, if you make net profits trading forex, you will most likely have to pay taxes on the gains. Make sure you consult a tax expert when the time comes. Much of this depends on your local tax regulations and jurisdictions, but in almost all cases, you will have to pay tax on any net gains that you make in your account.
Beginner Forex Recommendations
Now it’s time for you to decide which beginner forex broker to choose from to start your journey as a forex trader.
Forex.com and IG
If you are dead serious about becoming a forex trader and making a living doing it, we recommend that you go with either Forex.com or IG. Both are equally good by all measures. Very importantly, you can grow with both from being a brand new forex trader who trades the minimum 0.01 lots to a seasoned profitable forex trader swinging 5, 10 or even 20 lots per trade.
So which one to choose now simply comes down to your own personal preference. Do you like Forex.com’s website better or do you prefer the color schemes of IG’s website? You know what I mean.
eToro
If forex trading is something you are more curious than dead serious about, you just want to see what the fuss is all about, then go ahead and get yourself an eToro account.
CMC Markets
If you understand and like trading CFDs, then CMC Markets is the go to choice.
Summary
If like many aspiring forex traders, you’ve been spending tons of time researching forex brokers, kudos to you! But NOW is decision time. It’s time to stop over thinking it and start opening your demo account.
Becoming a successful forex trader is a journey. No forex brokers can give you trading success, all they can give you is a set of tools to use.
Let this be the last forex brokers review article you’ll read, pick one today, open your account and get yourself started on this journey of becoming a successful forex trader.