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A Beginners Guide to Forex Trading – What You Need to Know about Best Forex brokers

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So you fancy the idea of FX trading, but don’t have a clue where to start. Don’t be embarrassed to confess to your lack of knowledge, because some of the most experienced Forex traders started off as beginners. And there is a wealth of information available, either at your local library, bookstore, or online, to bring even the most inexperienced to a certain level of understanding. We hope that you find everything you need here on this site, as it’s very convenient to have a place of reference where all the necessary information is close at hand.
As well as introducing you to the world of Forex and all it entails, we’ll also be bringing you details of the best Forex brokers. Without the best Forex broker by your side, you’ll struggle to take advantage of this popular form of investment.
So let’s start with a brief explanation of the form of investment known as Forex trading.

What is Forex trading and how the top Forex brokers can help you trading?

  1. Top Online Forex Brokers
  2. The benefits of Forex Trading
  3. The history of Forex trading
  4. Forex Tips

Have you ever travelled to a foreign country? It’s very likely the country you visited used a different currency than the one you use in your everyday life. Which meant you had to find a currency exchange booth at the airport, or visit your local bank, and change your spending money into the currency of the country you were visiting. When it was your turn to be served you would have been faced with a long list displaying different exchange rates for different currencies. When exchanging one currency for another you are participating in the most basic form of FX trading, via the Forex market.
When it’s time to return home after a restful vacation, the exchange happens in reverse. You’ll also notice that the exchange rate has changed, and this is what allows investors to make money in the foreign exchange market.
The foreign exchange market is one of the largest financial markets in the world, with a trade volume of more than $5.3 trillion per day. When you compare this with the trade volume of the New York Stock Exchange, currently just $22.4 billion per day, you can understand the enormity of the FX market. However, the figures can be deceiving. The huge $5 trillion figure relates to a market which happens on a global scale. The numbers are actually much smaller when you break it down. Retail FX trading, which is what you’ll be doing, is a mere $1.49 billion. Which is still a big number, but not as big as many would have you believe.

Best Online Forex Brokers – List

Broker Info Bonus Visit

Min Deposit $250

Regulation Regulated 

PayoutUp to 90%

100% Visit Broker

Min Deposit $250

Software FinRally trading 

Support 6 Languages

100% Visit Broker
fxtm Read FXTM Review

Min Deposit $5

Regulation CySEC, FBS 

Spreads 0.7 pips

$25 Free(T&C's apply) Visit Broker

Min Deposit $250

Platform Nadex trading 

Support Excellent

100% Visit Broker

Min Deposit $10

Platform BOL Financial trading 

Support 24/7

100% Visit Broker
XM Read XM Review

Min Deposit $5

Regulation CySEC 

Spreads 1.9 pips

$30 Free* Visit Broker
Avatrade Read Avatrade Review

Min Deposit $100

Regulation MiFID

Spreads Fixed Spread

40% Visit Broker
Plus500 Read Plus500 Review

Min Deposit $100

Regulation CySEC/FCA/ASIC

Spreads Dynamic/Fixed

Up to $10,000* *per T&Cs Visit Broker 
CM Trading Read CM Trading Review

Min Deposit $250

Regulation FSP

Spreads 2 pips

UP TO $3,000 Visit Broker
HYCM Read HYCM Review

Min Deposit $100

Regulation FCA

Spreads 1.8 pips

$5000 Visit Broker
HotForex Read HotForex Review

Min Deposit $50

Regulation CYSEC

Spreads 0.2 pips

100%* Visit Broker
Instaforex Read Instaforex Review

Min Deposit $1

Regulation FFMS

Spreads Fixed Spread

30% Visit Broker
eToro Read eToro Review

Min Deposit $50

Regulation CYSEC, FCA

Spreads 3 pips

UP TO $1000 Visit Broker
FBS Read FBS Review

Min Deposit $1

Regulation IFSC

Spreads 0-3 pips

100% Visit Broker
* Not valid for EU traders, T&C apply

See a Full List of Forex Broker Companies

Best Online Forex Brokers – List

Broker Info Bonus Visit

Min Deposit $250

Regulation Regulated 

PayoutUp to 90%

100% Visit Broker

Min Deposit $250

Software FinRally trading 

Support 6 Languages

100% Visit Broker

Min Deposit $250

Platform Nadex trading 

Support Excellent

100% Visit Broker

Min Deposit $10

Platform BOL Financial trading 

Support 24/7

100% Visit Broker
XM Read XM Review

Min Deposit $5

Regulation CySEC 

Spreads 1.9 pips

$30 Free* Visit Broker
Avatrade Read Avatrade Review

Min Deposit $100

Regulation MiFID

Spreads Fixed Spread

40% Visit Broker
Plus500 Read Plus500 Review

Min Deposit $100

Regulation CySEC/FCA/ASIC

Spreads Dynamic/Fixed

Up to $10,000* *per T&Cs Visit Broker 
CM Trading Read CM Trading Review

Min Deposit $250

Regulation FSP

Spreads 2 pips

UP TO $3,000 Visit Broker
HYCM Read HYCM Review

Min Deposit $100

Regulation FCA

Spreads 1.8 pips

$5000 Visit Broker
HotForex Read HotForex Review

Min Deposit $50

Regulation CYSEC

Spreads 0.2 pips

100%* Visit Broker
Instaforex Read Instaforex Review

Min Deposit $1

Regulation FFMS

Spreads Fixed Spread

30% Visit Broker
eToro Read eToro Review

Min Deposit $50

Regulation CYSEC, FCA

Spreads 3 pips

UP TO $1000 Visit Broker
FBS Read FBS Review

Min Deposit $1

Regulation IFSC

Spreads 0-3 pips

100% Visit Broker
* Not valid for EU traders, T&C apply

See a Full List of Forex Broker Companies

Best Online Forex Brokers – List

Broker Info Bonus Visit
XM Read XM Review

Min Deposit $5

Regulation CySEC 

Spreads 1.9 pips

$30 Free* Visit Broker
Avatrade Read Avatrade Review

Min Deposit $100

Regulation MiFID

Spreads Fixed Spread

40% Visit Broker
fxtm Read FXTM Review

Min Deposit $5

Regulation CySEC, FBS 

Spreads 0.7 pips

$25 Free(T&C's apply) Visit Broker
Plus500 Read Plus500 Review

Min Deposit $100

Regulation CySEC/FCA/ASIC

Spreads Dynamic/Fixed

Up to $10,000* *per T&Cs Visit Broker 

Min Deposit $100

Regulation CySec

Spreads Spread

$25**per T&Cs Visit Broker
HotForex Read HotForex Review

Min Deposit $50

Regulation CYSEC

Spreads 0.2 pips

100%* Visit Broker
CM Trading Read CM Trading Review

Min Deposit $250

Regulation FSP

Spreads 2 pips

UP TO $3,000 Visit Broker
HYCM Read HYCM Review

Min Deposit $100

Regulation FCA

Spreads 1.8 pips

$5000 Visit Broker
24option Read 24option Review

Min Deposit $100

Regulation CySec

Spreads 1.8 pips

N/A Visit Broker
Instaforex Read Instaforex Review

Min Deposit $1

Regulation FFMS

Spreads Fixed Spread

30% Visit Broker
FBS Read FBS Review

Min Deposit $1

Regulation IFSC

Spreads 0-3 pips

100% Visit Broker
eToro Read eToro Review

Min Deposit $50

Regulation CYSEC, FCA

Spreads 3 pips

UP TO $1000 Visit Broker
* Not valid for EU traders, T&C apply

See a Full List of Forex Broker Companies

There are a lot of different names bandied around, in connection with Forex trading. The FX market, currency market, foreign exchange market, foreign currency market, and plenty more. But they all refer to a form of investment that is undertaken by banks, business, governments, individuals and traders who exchange and speculate on various currencies. It is open 24 hours a day, 5 days a week. And there are trading centers located in many major cities worldwide. Such as New York, London, Tokyo, Frankfurt, Zurich, Hong Kong and Paris. There is no central marketplace, which is the case for stock market trading. Forex trading is said to take place ‘over the counter’. Forex prices are quoted by all the major banks, but not all will have exactly the same price. The man on the street, such as you and I, will have to trade via a top Forex broker. And the rates they use will be an average of a number of bank rates.

There are a variety of participants in the FX market?

There are a number of different people, organisations, and top FX brokers who participate in the FX trading market.

The benefits of trading the Forex market

As with any form of investment there are disadvantages and advantages of participating. First we’ll look at the benefits.

Before we carry on any further, we’ve decided to introduce some of the common words and phrases used in the FX market. As it is important to understand the jargon.

Understanding the basic Forex jargon

We’ve already given you a brief introduction to the world of Forex trading, and now it’s time to discover some of the unusual and unique terms you are certain to encounter. Without this knowledge you won’t be able to fully understand everything you read about the industry, and it’ll certainly help when it comes to looking for top online Forex brokers. And it also means we won’t have to keep going back and explaining some of the terms we choose to use here.

Now you have a little bit more knowledge regarding some of the most important Forex terms, let’s take a look at the most common currency pairs and help you to understand a quote.

Understanding FX currency pair quotes

The major Forex currency pairs and their nicknames are:
forex market

USD – US Dollar
EUR – Euro EUR/USD – “Euro”
JPY – Japanese Yen USD/JPY – “Dollar Yen”
GBP – British Pound GBP/USD – “Cable” or “Sterling”
CHF – Swiss Franc USD/CHF – “Swissey”
CAD – Canadian Dollar USD/CAD – “Dollar Canada”
AUD – Australian Dollar AUD/USD – “Aussie Dollar”
NZD – New Zealand Dollar NZD/USD – “Kiwi”

It’s vital to understand how to read a currency pair quote before you start trading, so let’s help with a brief explanation.
The best online Forex brokers quote the exchange rate of two currencies in a pair. This is because in any Forex trading transaction, one currency is being bought, while another is being sold. This never changes.

Here is an example of a quote relating to the Euro and US Dollars:

EUR/USD – 1.1121
The first currency in the quote is the Euro and is called the base currency. While the second currency, the US Dollar, is the counter or quote currency. If you decide to buy this particular currency pair, it clearly indicates how much of the quote currency (USD) is required to buy one unit of the base currency (EUR). In the above example, 1.1121 US Dollars are required to buy 1 Euro. If you sell the currency pair, you will receive 1.1121 US Dollars for each Euro sold.
If you want an easy way to remember the principle think of the base currency as the basis for the trade. Whether you are buying or selling a currency pair the base currency is always the same. In other words, it is always based on the first currency in the pair.
The whole point behind Forex trading, is to buy a currency pair if you consider the base currency will increase in value (appreciate), in relation to the quote currency. If you think the base currency will decrease (depreciate) in value in relation to the quote currency, then you should choose to sell the pair.

Forex Brokers By Countries

The history of Forex trading and the Forex market

Some of you reading this will find this section a little boring. We appreciate that not everyone will want to know about the history. But we consider it an important part of your Forex journey. It’s good to know at least a little about why Forex markets exist and how it all began. So here goes.
The foreign exchange market, or Forex, FX, or currency market, as it now often known, refers to a global decentralized market in which currencies are traded. Under this heading are all aspects of buying, selling, and exchanging different currencies at a current or predetermined price. Currencies have been traded across the globe for centuries, but one of the most important events in the history of the Forex market happened in the 1800s, when the gold standard was introduced. Before its introduction it would generally have been gold and silver that were used for international payment. However, this wasn’t a particularly good method of payment. The value of these two metals was very much up and down. And were affected by global supply and demand. If a new gold mine was discovered it would drive the price of gold down.
The gold standard was introduced so that governments could guarantee the conversion of a currency into a specified amount of gold, and vice versa. A currencythat would be backed by gold, and should have stabilized world currencies, sounds a pretty good idea in theory. In real life, however, it didn’t quite work out so well and tended to create patterns of boom and bust. The gold standard was dropped, but gold as a precious metal never lost its importance as a form of monetary value.
Towards the end of World War II, Allied nations found there was a need for a monetary system to fill the void left by the loss of the gold standard. 700 representatives from the Allied countries gathered together in Bretton Woods, New Hampshire. The reason for the gathering was to iron out the details of a new international monetary system. They decided to call it the Bretton Woods system. The main part of this new system was for the US dollar to replace gold as the standard used for converting world currencies. It also led to the US dollar being the only world currency backed by gold, at that time. It also created three agencies that would oversee economic activity across the globe. These were the IMF (International Monetary Fund), International Bank for Reconstruction, and the General Agreement on Tariffs and Trade (GATT).
However, this system suffered a number of problems. These included the US Treasury running low on its gold reserves, and not having enough gold to cover all the US dollars foreign central banks had in their reserves. Bretton Woods came to an end in 1971, when President Richard Nixon closed the gold window and refused to exchange US dollars for gold. While Bretton Woods didn’t last it did leave an important legacy that still affects the market today. And that is the three international agencies that were created and still exist today, albeit in a slightly different form.
Nowadays, currencies are allowed to float freely against one another, which has led to the value of various currencies varying, and in turn this led to the need for foreign exchange services. The services were provided by commercial and investment banks on behalf of their clients. But it wasn’t until the introduction of Forex trading online that the FX world was opened up to everyone. It has also led to Forex trading being used as a speculative form of investment.

Top Forex Payment Systems

The skills you’ll need to become a successful participant in the world of Forex trading online

The world of Forex offers amazing opportunities for people to make money. However, we should point out that there are also amazing opportunities for people to lose money too. As with any form of investment prices can go down as well as up. There are ways to increase the chance of winning big, but there is no sure fire way for 100% success. There are a number of skills required that will help anybody considering trading Forex online. We’ll give you the list, but then you have to decide whether you’ve got them.

We think it’s time to look at the first and most important step to take, as you should now have enough basic information to start your Forex journey.

Tips on finding the best FX brokers

You should have realized by now that being a novice isn’t something to be ashamed of. There are thousands of people starting their own Forex journey the same as you. Unlike many other kinds of investment market there are a huge amount of free learning tools and resources to help you on your way. All the best Forex brokers offer free demo accounts, and there are also mentoring services, online tutorials, and heaps of online and printed resources, charts, and signals. In fact, there is so much to choose from that it can be rather daunting. So let’s help to guide you with taking your first and possibly most important step.
Selecting the best Forex broker isn’t going to be easy. That is if you want to pick one in an objective and scientific way. Of course there is always an easy way, but you shouldn’t be tricked by various clever promises. You are going to be bombarded with eyecatching ads online, in magazines, and on TV, put there to catch the blissfully unaware, but we hope that you aren’t going to be one of them.
You’re going to be using a strategy when it comes to Forex trading, so why not make one when choosing the best online Forex brokers. Let’s look at some of the features you should be taking into account.

Forex Brokers By Regulation Authority

When it comes to choosing the best Forex broker for your needs, there is a lot to be said for checking out sites that offer Forex broker comparison.

Tips on becoming a successful Forex trader

forex tradingOnce you’ve checked out the various Forex broker comparison sites, you’re going to be well on the way to finding the best Forex brokers for your needs. Time to think about sharing some information on the importance of keeping to your own set of rules, and those that have guided countless successful Forex traders. And it doesn’t matter whether a trader is a complete novice or an expert, or how big the size of their account, all of the following rules are important especially when allowed to work together.

All of these trading rules are important, and understanding how they work together will help you to develop a viable Forex trading business. It’s not going to be easy. In fact it’s going to be hard work. But as long as you stay disciplined and are patient it’s more likely your journey will be a success.
We’re here to help you with your journey, and we hope you’ll keep our site as one of your favorites. Because we’ve got so much more to share.