Forex Brokers For Beginners

Choosing from the wide range of forex brokers for beginners can seem an impossible challenge. With so many large and small companies with different accounts, platforms and FX products, it can be hard to know where to start. Fortunately, this guide will explain everything you need to know, from comparing educational tools and account types to strategies and platforms. You can also use our list of the best forex brokers for beginners below to get started today.

Top Forex Brokers for New Traders

  1. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  2. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  3. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  4. IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
  5. Plus500 US - Plus500 US offers futures trading on a small selection of 13 currencies, including popular pairs like the EUR/USD and GBP/USD. Day trading margins are competitive, starting from $40, while the educational resources do an excellent job of breaking down the basics of forex futures for new traders.

Forex Brokers For Beginners Comparison

Forex Brokers For Beginners Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator Visit
FOREX.com logo
80+ 1.2
$100 NFA, CFTC Visit
Interactive Brokers logo
100+ 0.08-0.20 bps x trade value
$0 FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB Visit
OANDA US logo
65+ 1.6
$0 NFA, CFTC Visit
IG logo
80+ 0.8
$0 FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA Visit
Plus500 US logo
13 0.75
$100 CFTC, NFA Visit

#1 - FOREX.com

Why We Chose FOREX.com

FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • GBPUSD Spread: 1.3
  • EURUSD Spread: 1.2
  • EURGBP Spread: 1.4
  • Total Assets: 80+
  • Leverage: 1:50
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

About FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

Pros

  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.

Cons

  • Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.

#2 - Interactive Brokers

Why We Chose Interactive Brokers

IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • GBPUSD Spread: 0.08-0.20 bps x trade value
  • EURUSD Spread: 0.08-0.20 bps x trade value
  • EURGBP Spread: 0.08-0.20 bps x trade value
  • Total Assets: 100+
  • Leverage: 1:50
  • Platforms: Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

About Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

Pros

  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.

#3 - OANDA US

Why We Chose OANDA US

OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • GBPUSD Spread: 3.4
  • EURUSD Spread: 1.6
  • EURGBP Spread: 1.7
  • Total Assets: 65+
  • Leverage: 1:50
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist

About OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

Pros

  • Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
  • Beginners can get started easily with $0 minimum initial deposit
  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies

Cons

  • The range of day trading markets is limited to forex and cryptos only
  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported

#4 - IG

Why We Chose IG

IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • GBPUSD Spread: 0.9
  • EURUSD Spread: 0.8
  • EURGBP Spread: 0.9
  • Total Assets: 80+
  • Leverage: 1:30 (Retail), 1:250 (Pro)
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading

Cons

  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders

#5 - Plus500 US

Why We Chose Plus500 US

Plus500 US offers futures trading on a small selection of 13 currencies, including popular pairs like the EUR/USD and GBP/USD. Day trading margins are competitive, starting from $40, while the educational resources do an excellent job of breaking down the basics of forex futures for new traders.

"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills."

- DayTrading Review Team
  • EURUSD Spread: 0.75
  • Total Assets: 13
  • Platforms: WebTrader, App

About Plus500 US

Plus500 is a well-established broker that entered the US market in 2021. Authorized by the CFTC and NFA, it provides futures trading on forex, indices, commodities, cryptocurrencies, and interest rates. With a 10-minute sign-up, a manageable $100 minimum deposit, and a straightforward web platform, Plus500 continues to strengthen its offering for traders in the US.

Pros

  • Plus500 is a publicly traded company with a good reputation, over 24 million traders, and a sponsor of the Chicago Bulls, instilling a sense of trust
  • The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
  • The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts

Cons

  • The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
  • While Plus500 US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
  • Plus500 US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders

How A Forex Broker Works

A foreign exchange broker (also known as an FX or forex broker) is a business that facilitates the purchase and sale of currencies. There are two basic forms of forex asset offered by brokers, spot and CFD. A spot forex instrument aids the direct purchase of one currency using another, with the broker physically exchanging the two currencies for their clients. Forex CFD brokers, on the other hand, allow their clients to speculate on the price movements of a currency pair without any physical currency being exchanged.

There are lots of helpful features offered by forex brokers for beginners to better understand and take advantage of the markets. This is primarily done through their trading platform, supporting technical analysis, order execution and account management. It is also common to find educational material from forex providers to help their customers learn trading fundamentals.

Pricing

Forex brokers for beginners and experienced investors make money through two main charges, commissions and spreads.

Spreads

The spread is the difference between the buy and the sell price. For example, if your broker offers the GBP/USD pair at 1.3710/1.3713, this means that you can either buy £1 for $1.3713 or sell £1 for $1.3710. The spread is the difference between these two values, i.e. 0.0003 (or 3 pips).

If you were to buy and then sell £100,000, you would spend $137,130 and then get back $137,100, paying a spread of $30 to the broker. The spread is set by both the markets and the broker, varying with the liquidity of the asset. An asset will generally display lower spreads when market demand is high. Nearly all forex brokers for beginners charge some form of spread, though these can temporarily fall to zero pips for certain currencies during periods of high liquidity.

Commissions

Some forex brokers for beginners may also charge a commission, taking a flat or percentage fee on the volume of a trade. For example, let’s say a broker offers the GBP/USD pair at 1.3710/1.3711. While the spread is only 1 pip, this broker also charges a commission of $5 per lot (100,000 units). Therefore, if you were to buy £100,000, you would pay a spread of $10 and a commission of $5.

If you are just getting started using forex brokers, these fees can seem a little difficult to understand. However, you must take the time to understand the fee structure of forex brokers, for beginners especially, and choose a pricing style that suits your strategy.

How To Compare Forex Brokers For Beginners

Here is what to look for in the best forex brokers for beginners:

Fees

The costs associated with different forex brokers can quickly add up, so a transparent and competitive pricing structure can make a big difference in potential income. Beyond commissions and spreads, forex brokers for beginners may charge for deposits, withdrawals, currency conversions, overnight holding fees and inactivity fees. There may be brokers targeted at beginners that offer attractive bonuses but catch users on hidden charges, so keep an eye out.

Account Types

There is a wide variety of forex accounts to choose from, often geared towards different experience levels, capital investments and strategies. Account types may vary by minimum deposit amounts, fees and market exposure. For newcomers, in particular, forex brokers with low deposit requirements can help you get started without risking too much capital.

Note, US citizens and clients that qualify as a Pattern Day Trader will need to maintain a trading balance of at least $25,000.

Regulation

Whether you are researching the best forex brokers for beginners in Iran, the USA or South Africa, you will want to find a broker that is regulated. The safest bet is one that is regulated in your country of residency. However, many of the top forex brokers for beginners will operate globally and follow international regulations. Look out for respected financial institutions such as the FCA (Financial Conduct Authority) in the UK, the CySEC (Cyprus Securities and Exchange Commission) in Cyprus and the SEC (Securities and Exchange Commission) in the USA.

Training Tools

The best forex brokers for beginners will offer comprehensive educational material and training tools that will help clients improve their knowledge and refine their strategies. Find a forex broker that offers educational material in formats that you find engaging and informative and use them to enhance your trading skills, whether that be videos, PDF guides or articles.

Platform

While platforms can vary drastically from simplistic and sleek to sophisticated and complex, the best ones offered by forex brokers for beginners will meet somewhere in the middle. For example, MetaTrader 4 (MT4) boasts a range of technical analysis tools and order types with a relatively easy-to-use interface. Many brokers offer demo accounts with which you can try their services and features in a risk-free environment. Most platforms can be downloaded for Windows and Mac, but it is a good idea to check first.

metatrader 4 forex trading app
MT4

Market Access

Not all forex brokers for beginners will offer a full range of currency pairs, some may be limited to major and minor pairs. Major currency pairs are comprised of USD and any of the other top eight global currencies. Minor pairs are other combinations among them and exotic pairs involve weaker, developing currencies. Major pairs, and some minor, often come with tighter spreads and better liquidity, though if you have an account in India or Canada, for example, you may want to invest in pairs involving Indian Rupees (INR) or Canadian Dollars (CAD).

Customer Support

Getting in contact with your broker is important in the event of any issues as delays can make the difference between profit and loss. Responsiveness is especially key amongst forex brokers for beginners. Ensure that the contact methods and active hours match those most convenient for you. Many brokers will offer a 24/7 live chat window on their website that can be helpful.

When comparing brokers, test their customer support or check review sites to get a feel for their customer service.

Strategies

Day Trading

Intraday forex speculation involves opening and closing several orders within one day. All positions are generally closed by the close of the markets and trades can range from a few seconds to most of the day. The approach has become very popular as, when investing over such short time periods, many potentially profitable opportunities will come up. Most of the top forex brokers for beginners facilitate intraday FX trading with a range of tools and rapid order executions.

Scalping

Scalping entails making lots of high-volume trades over short periods of time. The idea is to close a position as soon as it becomes profitable, reducing the chance for the trade to reverse and lose money. This approach lends itself to automated trading, which opens and closes positions at pre-set points. Forex pairs with high liquidity and tight spreads are best used for scalping, as the profit margins per position are slim. Unfortunately, not all forex brokers for beginners allow scalping, so it could be worth checking a provider’s terms and conditions before opening an account.

Swing Trading

Swing traders analyse market trends that are rising or falling and open long and short positions accordingly. There are lots of subcategories of swing strategies using patterns, news or diagrams to analyse and identify trends. Plenty of the top 10 forex brokers for beginners offer the tools and support needed to implement swing trading strategies.

Margin

The use of margin isn’t a strategy in its own right, but it can make a huge difference in your investment style and options. Using margin, which is also known as leveraging your investments, allows you to increase the size of your position by borrowing money from your broker. There will likely be different limitations on the leverage rates you can access with forex brokers for beginners, for example, depending on whether you might be in Zimbabwe, Myanmar or Puerto Rico, hold a micro account or have a high net worth professional account. Leverage can multiply both your profits and your losses, so it is recommended for beginners to use leverage responsibly.

Final Word On Forex Brokers For Beginners

The foreign exchange market is an exciting place to get started and there are plenty of forex brokers for beginners to consider. The key points above are a good place to start when comparing platforms, though be sure to try their demo accounts and look out for regulation and customer reviews before committing money. See our list of best forex brokers for beginners to get started now.

FAQs

Are There Any Good Forex Brokers For Beginners?

Yes, there are plenty of excellent forex brokers for new traders, see our top list of forex brokers for beginners for recommendations. Foreign exchange is a massive market and anyone from experienced investors to complete beginners can take advantage of currency movements. Major pairs like USD/EUR and USD/JPY offer high liquidity and low spreads. Newcomers to the market should carry out proper research and fully understand the risks before opening an account.

Can Under 18s Use Forex Brokers?

No, minors cannot open accounts with forex brokers, this is also the case for 16 and 17-year-olds. You must provide proof of your age before opening an account with regulated FX brokers, though demo accounts may be offered without age verification.

What Are The Best Forex Brokers For Beginners?

Whether you are in Jamaica, the Philippines or Pakistan – there will be many suitable brokers that cater to your needs. As a beginner, you will want to take your time choosing the right broker for you. We have compiled a list of the best forex brokers for beginners.

What Forex Brokers Have The Best Platforms For Beginners?

There is a wide range of trading platforms available and many brokers will offer their own proprietary software. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are popular amongst investors of all experience levels, though this doesn’t mean other platforms are not also great for beginners. You can use a forex demo account to test out a broker’s platform before investing real capital.

Can I Use A Forex Broker For Cryptocurrency?

Forex brokers deal with foreign currencies such as USD, GBP and EUR. Some brokers may offer instruments in other markets, like NASDAQ indices, commodities (gold, oil etc.) or cryptocurrencies, such as Bitcoin and Ethereum. Check whether your broker offers all the assets you wish to trade before committing any cash.

Where Can I Learn More About Forex Brokers For Beginners?

This guide is an excellent start for new forex traders, but there are also free educational resources available throughout the internet. Social networks such as Reddit and TradingView are a good place to get in touch with other traders and exchange tricks and tips.