Just graduated! Which broker is good for beginners?

Beginner Questions
1

I know that not all brokers are created equal, so which one should a newbie get started with for some back testing and demo trading?

2

Hi @Mdluli, as you know there are different types of brokers, you need to decide which type you are comfortable with. NDD brokers like icmarkets provide ECN accounts with very tight spreads on price, but you pay commission. On the other hand DD brokers like XM provide you with accounts where there is a fixed/floating spread in price but you pay no commission (except for cryptos). You can back test and demo trade with any type of broker

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3

Thank you so much, @JoshRSA

4

It is only my highest pleasure :+1:

5

Oanda is another broker that was suggested to me by a professional full-time trader. He said it’s a good broker to start out with for newbies.

7

first welcome to the forum. As we all know that forex is a decentralized market a retail trader will require good broker to arrive at the market. You can check the listing of brokers provided by Babypips forum, it will definitely help you.

8

You should find the broker by yourself then compare with others so that you can learn the real way of finding the broker for your trading.

9

Welcome and congrats on finishing the academy!
On the broker topic - your location is key.
Depending on where you live - you might not have a lot of choice in which brokers to use, if you want to trade with a regulated broker or want to use high leverage.
Start with your local brokers, check them out. Check their offerings, regulations and business model (NDD/DD).
List your requirements and compare them to the broker’s offerings. If you want scalping, hedging, HFT, negative balance protection, post trade transparency reports, will you use EAs (and does the broker allow them), which trading platform will you use, what is your starting equity… these are all things that will determine which broker is best for you.
Start there.
When you find a broker that might look good - check the reviews about it here (use the search), on FPA, on myFXbook and ForexFactory… this should give you enough info to decide if you’d be safe with that broker.

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10

Thanks everyone for all your input! I really appreciate it :slight_smile:

11

One which has CySeC or FCA regulation. Better which provides transparent financial reports about its activity. The rest is on you.

12

Hello and welcome to Baby pips Forum!
Currently I am testing JFD Brokers Demo environment, as they are stating that it is the same as the live one (excepting the slippage). They have the option to test the ESMA conditions on demo.
I will list my criteria on which I choose to review and test a Broker.

  • Regulated
  • Inter-core bank spreads – not fixed as with the Market makers
  • NDD/ STP/DMA Broker
  • Data and funds security
  • Negative Balance protection and needed risk policies - this is applicable for all EU brokers (due to ESMA regulations from 01.08.2018)
  • No bonuses and markups
  • Trading platforms
  • Good customer service
  • Commission based broker
  • Free Add-ons package (it is working on demo as well)
  • 1 type of account for all its clients
  • 100% anonymity (our LPs never see your stops, limits and entry orders)
  • Member of ICF (Investor Compensation Fund)
    As far as I am aware, they have another license under the name JFD Overseas, and it is for the Non-eu clients.
    In the past I have tested FXCM, FX Pro, but only on Demo.
    Will keep you updated once when I open a Live account.
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