Best forex brokers | 3 instruments for Beginners

Best forex brokers | 3 FOREX INSTRUMENTS THAT BEGINNERS MUST KNOW BEFORE TRADING

In order to trade forex successfully, you must know what you are trading. Forex instruments are indispensable in forex trading.

So today I will talk about 3 most common forex instruments.

Also, I will share my opinions on what is the best for beginners in forex trading.

FOREX INSTRUMENTS with Best forex brokers

The most common forex instruments that almost all traders choose are:

Spot transaction

This is simply currency trading. You buy a currency with another currency. This exchange usually lasts for only one or two business days.

Traders make profits from spot transaction by buying low then selling high.

This way of trading is quite risky, because sometimes the market will go against you unexpectedly.

Forwards

Forwards transactions will last for at least 3 business days. The buyer and the seller will make an agreement on what price they will exchange. The agreement can predict even up to a year.

Therefore, no matter how the market goes, you will be safe because the price is decided in advance.

Futures

A future transaction is basically the same as forwards transaction. However, there will be more things to be decided than just exchange rate.

In this contract, the currency amount, the maturity date, as well as the interest amount will be pre-determined. This contract often lasts for 3 months.

HOW BEGINNERS SUCCEED IN FOREX

As beginners, choosing a forex broker is very important, because it will decide your chances and success immediately.

Once you choose wrong, you can easily lose all the money you invest in.

So how can we choose the most suitable forex brokers for beginners? Let me show you:

Low deposit

For trading experts, what they really care about are trading cost, broker’s credit and also brokers’ quotes quality.

But it is a different case for beginners as they only put a small fund so brokers will not cheat them.

Traders in the beginner stage may get a lot of good trading conditions because brokers want to nurture them.

Therefore, $100 or less is the amount that I believe new traders should deposit in the early stage (3 months), because you won’t need to care about the trading cost if you only put a small fund into the broker.

Small trading lot required

I hate to repeat the “95% of new traders will lose” but I want to remind you to keep your feet on the ground.

When you start trading, it is better to open as small positions as possible.

100,000 USD is the standard lot and yes, it is too much but you can still trade with Micro account which allows you to open positions with the lowest amount of 0.00001 Lot USD such as XM.

Exness and FSB also have Cent accounts with the minimum lot trade of only 0.0001 Lot USD.

When you trade with Micro account and Cent account, you should only deposit maximum of $10 for a month of practicing, and if you win, you can withdraw the winning money as well.

Moreover, brokers don’t set minimum deposit requirement for these accounts so you can freely deposit whatever amount you want.

Good local support

Local support means that brokers can help you in your local languages. I recommend this standard because forex trading is really complicated so you may need a lot of help.

When I started trading, I also encountered some simple and stupid problems like installing MT4, login or Credit Card 3D security so I think many new traders will face the same problems as well, …

… so I would be much easier and faster if brokers can support new traders in their local languages.

CONCLUSION

Now you know what forex instruments are and how to find a good place to trade them. Let’s start trading forex today and join the market of million active traders around the globe.

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