Best Forex Trading Strategies for Beginners

Even though the Forex Market may be a complicated place for beginner traders there is a basic basis which is a combination of understanding how currencies are quoted and what the exchange rates represent. When it comes to trading in the Forex Market, all currencies are quoted in pairs and Forex trading involves the simultaneously buying of one currency against another currency, which is sold.

 

Here are the best Currency Pairs for Beginners to trade:

Pairs commonly recommended for a beginner traders by the Best Regulated Brokers globally includes the USD/CAD, EUR/GBP, NZD/USD, AUD/USD and USD/CHF. These pairs are more suitable for analysis and the trends and characteristics of each pair are more visible.

For traders who are only starting out it is extremely important to invest a significant amount of their time in searching for trading training courses, beginner’s trading guides, lectures, videos and various other types of educational materials which is readily available online from a large selection of brokers and online educational institutions. 

We know this alone can be a massive undertaking so we have compiled a list of the Top 3 best Forex Academies, Books and Courses every Beginner should consider before taking on any strategy.  At the end of this article we will list our Top 3 Best Forex Broker Choices for Beginner Traders.

First things First – Top 3 Online Forex Academies:

Platinum Trading Academy

Platinum Trading Academy

The Platinum Trading Academy is an Online Trading Academy with Expert Forex Mentors who collectively share over 50 years of experience in the Financial Markets. 

The Platinum Trading Academy offers:

  • Videos
  • Strategies
  • Blog Posts
  • Learning to trade

The first notable forex trading course on offer is the Platinum Trading AcademyForex Foundation for Beginners.

The Platinum Trading AcademyForex Foundation for Beginners covers many different topics and their tutorials include the following:

  • What is Forex trading
  • Forex Principles
  • Forex Trading Examples
  • Forex Trading Charts
  • Forex technical analysis
  • Forex risk management
  • The psychology of Forex trading

Access to the following is also available:

  • Platinum live trading floor
  • Long-Term analysis charts
  • Platinum algorithmic system

And one on one personal mentoring.

Pros and Cons Include:

Pros

Cons

Live trading room

Lacks strategy insight

Indicator System

No verified results

Trade Videos

No pricing information

Mentoring

 

The Platinum Trading Academy delivers advance trading courses for beginner to experienced forex traders. These courses are specialized such as Master Programme, Elite Trader Programme, Forex Trading program for Beginners and Crypto Courses etc.

Bizintra

Bizintra allows users to develop their trading skill set and learn to consistently place intelligent trades with confidence. Bizintra teaches in a live environment, complimented by on-demand videos, daily trading signals and access to live traders at any needed time. Bizintra not only provides live education but also live support. 

Bizintra offers courses in 3 categories. 

  • Beginner
  • Intermediate 
  • Advanced 

Training in financial markets all featuring an interactive, engaging learning experience, proven trading strategies and live trading support.

Beginner Trading Course – For brand new traders

  • 4 Trading Education videos which have been developed to give beginners an understanding of what trading the markets are like.
  • 10 Trading Mini Videos
  • Internal Traders Network
  • Introduction to trade reviews

Bizintras’ team of professional traders and mentors have over 60 years’ experience between them, and provides a strategy they call “Enigma Strategy”.

Six Figure Capital

Six Figure Capital

The 14-day course offered by Six Figure Capital is the foundation for prosperous trading, designed to take any trader no matter their experience level from beginner to expert.

The Six Figure Capital 14 Day course covers:

Day 1: Introduction

Day 8: Technical Analysis

Day 8: Technical Analysis (Part 2)

Day 2: Currencies

Day 9: Harmonic Patterns

Day 3: Market Terminology

Day 10: Advanced Harmonic Patterns

Day 4: Identifying Your Trading Personality

Day 11: Confluence

Day 5: Japanese Candlesticks

Day 12: Risk Management &Risk Management (Part 2)

Day 6: Chart Your Way to Success

Day 13: Trading Psychology & Trading Psychology (Part 2)

Extra Module: A Day in the Life of a Trader

Day 7: Understanding the Market

Day 14: You’re Ready & You’re Ready (Part 2)

A Harmonic Mastery Course with 13 Advanced Modules is also available.

Payment options include:

  • 12 Month Contract: £97monthly
  • Lifetime Membership: £800 one-time

What’s Included in a Lifetime Membership?

  • Lifetime Access
  • 14 Day Course
  • Harmonic Mastery Course
  • Course Bonuses
  • Live Trading Sessions
  • Access to Private Slack Community
  • Bonus Materials (eBooks and Spreadsheets)
  • Updates & Ongoing Support

The £800 one-time Lifetime Membership allows users to save over 33% Compared to the 12 Month Contract Membership.

Top 3 Best Online Forex Courses include:

“Forex Trading A-Z” from Udemy

Perfect for:  Beginner to advanced traders

Price:  $12.99

Forex Trading A-Z” is an in-depth course which teaches traders the complete ins and outs of the entire forex market, including how to trade and make money off currency movements.

Brooks Forex Trading Course

Perfect for:  Beginner to intermediate traders

Price:  $349

Through this course, traders will learn price action trading taught by industry expert and professional trader Dr. Al Brooks in this Brooks trading course. The Brooks Trading Course is the most comprehensive source of information on reading and trading price charts. 

Forex School Online

Perfect for:  Beginner to intermediate traders

Price:  Free

As the name suggests, Forex School Online is a website which helps students understand the basics of the forex trading market available through two courses.

The Top 3 Best Books for Beginner Traders

Currency Trading for Dummies

Written by Kathleen Brooks and Brian Dolan

Perfect for:  Beginner to intermediate traders

Price:  Free

As the name suggests, Forex School Online is a website which helps students understand the basics of the forex trading market available through two courses.

Forex Trading: The Basics Explained in Simple Terms

Forex Trading: The Basics Explained in Simple Terms

Written by Jim Brown

This book is one of the best books available on the market to date for those who want to learn to trade forex currencies, and it breaks down the basics into the simplest possible and most understandable of terms. Traders of any level can pick this book up and understand it, and use it to create their own trading strategies.

Forex for Ambitious Beginners: A Guide to Successful Currency Trading

Forex for Ambitious Beginners: A Guide to Successful Currency Trading

Written by Jelle Peters

Forex for Ambitious Beginners: A Guide to Successful Currency Trading aims to stop beginner traders from jumping into the forex market headfirst without taking the necessary caution by offering readers a very realistic approach and explanation about the various pitfalls that they may face when trading in the forex market.

Those new to the trade will need to use all the knowledge they obtain through one or all of the above-mentioned ways to develop early trading strategies and draw meaningful conclusions for future reference.  Hence the importance of investing a substantial amount of time in self-education.

In the Forex market there are multiple trading techniques and trading strategies/tactics involved and this can and will confuse those new to the trade.  Next, we will introduce beginners to some key forex strategies which traders can use for their initial steps in the market.

Just some clarity before we get stuck in – 

  • A Strategy is a technique which is studied in detail and has been developed to achieve clear targets.
  • A Tactic is only one technique that is used to achieve a result in the short term.

What are the best strategies for beginners?

Trend Following

The Trend Following strategy is essential to beginners as it is extremely simple and easy to understand and master.  The basic idea behind this strategy is that traders keep an eye on the trend and open their position in the direction of the trend.  Traders will need to decide if they want a long-term or a short-term strategy which will in turn give them an idea of what type of charts to make use of.

Market trends are usually long, medium or short-term. 

The Trend Following strategy requires a close observation of charts and patterns for even the slightest change.  

How to Test A Forex Trading System

The fastest way to test a system is to find a charting software package where a trader can go back in time and move the chart forward one candle at a time.  When a trader moves their chart forward one candle at a time, they can follow their trading system rules and make their trades accordingly.  Traders must record their trading record, and be honest with themselves at all times – Record wins, losses, average win, and average loss.

The next step will be – Trade a system live on a demo account for at least two months.  This will give traders a feel for their system when the market is moving. After two months of trading live on a demo account, traders will see if their system can truly stand its ground.  If a system brings good results, traders can choose to trade their system live on a real account.

Here is our Top 3 Choices for The Best Forex Brokers suitable for Beginner Traders

Swissquote best broker

Swissquote

Swissquote is best suited for traders who require a multi-asset solution and offers beginner traders easy-to understand and professional trading educational videos, eBooks, webinars and tutorials.

The educational tools on offer include:

  • Tutorial videos for the platforms
  • Forex learning centre with educational videos, eBooks
  • Webinars and seminars

Is Swissquote Safe?

Swissquote Ltd is authorised and regulated by the Financial Conduct Authority (FCA).

Swissquote offers trading of underlying cryptocurrencies (non-CFDs), including bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple. Swissquote clients can trade ten cryptocurrency pairs from within the Trading account.

Commissions & Fees

The commissions and spreads from Swissquote’s UK entity, Swissquote Ltd, differ slightly from its Switzerland entity, Swissquote Bank Ltd. 

UK entity: At Swissquote’s UK entity, if an active trader deposits at least $10,000, the Elite account is available. It comes with a commission of 5 EUR (2.5 per side) per Round-Turn (RT) trade, in addition to low prevailing spreads. 

Account comparison: A Standard, Premium, and Prime (Elite in the UK) account are offered at both Swissquote’s UK and Swiss entity. 

Platforms & Tools

Proprietary platform suite: Advanced Trader (desktop and web versions 

Full MetaTrader suite: (MT4 desktop, MT4 web, and MT5) 

Advanced Trader web: The web-based version of Advanced Trader requires flash, making it unsupported in most major browsers.

Advanced Trader desktop: The desktop version of Advanced Trader, features 49 indicators (17 overlays and 32 studies) alongside 16 drawing tools and integrated chart patterns. The platform is Java-based. 

Research

Swissquote provides an industry standard offering – streaming news headlines, economic calendar, blog commentary and more.

Tailored products and content: Swissquote’s research team helps structure some products, such as the exchange-traded certificate for crypto. Swissquote also provides analysis and market commentary and publishes a high-quality, bi-monthly magazine.

Third-party tools: Swissquote offers traders access to Trading Central and AutoChartist.

Customer Service

Average Connection Time: <1 minute

Average Net Promoter Score: 7.3 / 10

Average Professionalism Score: 7.2 / 10

Overall Score: 7.67 / 10

Ranking: 13th of 22 brokers

Swissquote’s Advanced Trader mobile app is easy and straight-forward to use but, for traders who prefer not to use Swissquote’s mobile app, MetaTrader is available.

pepperstone best broker

Pepperstone

Pepperstone was founded in 2010 in Melbourne, and processes, on average, $12.55 billion of trades each day (October 2019) and is best known for its extensive selection of third-party trading platforms. Pepperstone provides forex and CFD traders competitive pricing, outstanding customer service, and one of the largest selections of third-party platforms available.  Pepperstone also offers a small set of tradeable products but.

Pepperstone offers beginner traders a selection of great educational materials and traders can make use of demo accounts, participate in webinars and read educational content.

With Pepperstone, traders can learn in the following ways:

  • Demo Account
  • Webinars
  • Platform tutorial videos
  • Quality educational articles
  • Trading Glossary

Is Pepperstone Safe?

Pepperstone is measured as average-risk and is not publicly traded and does not operate a bank. Pepperstone is authorised by:

  • Two tier-1 regulators
  • Zero tier-2 regulators
  • Zero tier-3 regulators

Pepperstone is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA).

Commissions & Fees:

Pepperstone is an agency-execution broker and offers a decent range of options on pricing plans, with its commission-based Razor Account being the top choice. 

Account types: 

Pepperstone offers two pricing models which are dependent on the account type the user wishes to open, ranging from:

The Standard Account: Which incorporates commissions into the prevailing spreads. Fees may also slightly vary, depending on the platform the user choose to trade.  The standard account is commission-free but has higher spreads and is not as competitive as the Razor Account.

Razor Account: The Razor Account can be used with either the MetaTrader (MT4) or cTrader platforms and follows a commission-based pricing structure in addition to prevailing spreads. 

Active traders: Pepperstone’s active trader program offers discounts on the appropriate commission rates which helps to boost its ranking in the active trader category. 

  • A minimum amount of 200 lots is required to qualify for the lowest tier
  • A rebate of $1.00 per standard lot
  • Applies only to Razor accounts.

Order-Routing: Pepperstone uses its EDGE infrastructure to help bridge the MetaTrader platform with liquidity providers and incorporates its Pepperstone Price Improvement (PPI) technology to help improve execution rates. 

 

Platforms & Tools

Pepperstone offers an excellent third-party platform.

  • Platforms:  Pepperstone offers the full MetaTrader and cTrader suites which includes a MT4 (desktop and web), MT4 Multi-terminal, MT5, cTrader (desktop and web), and cAlgo. Traders can use either account type, Razor, or Standard, with any platform.

Copy trading:  Pepperstone offers 

  • The MirrorTrader and RoboX platform from Tradency 
  • The ZuluTrade platform
  • MyFxbook for MT4

cTrader vs MT4: Both cTrader and MT4 support algorithmic trading, cTrader has an advantage with its web-based platform. 

Broad range of third-party social copy-trading platforms and research tools:

  • Third-party tools: Pepperstone offers traders access to AutoChartist, which is a well-known, popular software provider of automated pattern recognition and trading signals. 
  • Smart Trader Tools are also offered by Pepperstone which included an MT4 add-on with tools such as sentiment indicators.
  • Market analysis:  Pepperstone offers content from third-party analysts. Trading Economics, a provider of market data, powers the firm’s economic calendar.
  • In-house commentary:   Pepperstone’s in-house research offers content such as “Daily Fix” and a “Chart of the Day” series.

Mobile Trading

At Pepperstone, Mobile trading is conduct with either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) mobile app, or the cTrader app, all available directly from the developer. 

Customer Service

  • Average Connection Time: <1 minute
  • Average Net Promoter Score: 7.9 / 10
  • Average Professionalism Score: 8.5 / 10
  • Overall Score: 8.42 / 10
  • Ranking: 4th of 22 brokers
XM Group

XM Group

The XM Group provides the entire suite of MetaTrader platforms plus over 1300 tradeable instruments.  XM Global Limited is authorised and regulated by the International Financial Services Commission (IFSC) (60/354/TS/19).

What makes the XM platform perfect for Beginners is the wealth of training and educational materials on offer. The platform hosts regular webinars specifically focussed at beginners and is inherently social, which encourages users to learn from the team of instructors. The company also published research and technical analysis.

Offering of Investments

The XM Group offers traders CFDs on 1200 stocks, 30 indices, eight commodities, four metals, five energies, and 57 forex pairs. 

Commissions & Fees

The commissions and fees at XM Group is depended on the type of account used. 

Spreads: In the XM Zero account, average spreads on the EUR/USD stand at 0.1 pips (according to XM Group website data, and not including commission), compared to the commission-free Standard and Micro account, which had average spreads of 1.7 pips for the same pairs.

Commissions: Even after including the USD $3.5 per side commission ($7 per Round Turn), and average spreads of 0.1 pips on the EUR/USD, the all-in cost to trade is 0.8 pips (0.1 spread + 0.7 RT commission), making the XM Zero account the firm’s most competitively priced offering.

Platforms & Tools

XM Group is a MetaTrader-only broker offering the standard experience which includes both MT4 and MT5. 

XM Group’s research offering consists of:

  • Content generated by an in-house team of analysts including:
  • Daily market recaps and 
  • Technical and fundamental analysis articles and videos. 
  • An economic calendar powered by Investing.com

Trading signals: The XM Group offers its trading signals hub to live account holders but, trading signals that can be automated are currently limited to the Signals Market available within the MetaTrader platform. 

Technical analysis:  The XM Group offers Tradepedia, which provides educational Forex and CFD content.

Video news analysis:  The XM Group creates daily forex news videos with market analysis explained in a TV interview-style format.

Customer Service

  • Average Connection Time: <1 minute
  • Average Net Promoter Score: 6.66 / 10
  • Average Professionalism Score: 5.2 / 10
  • Overall Score: 6.7 / 10
  • Ranking: 24th out of 43 brokers

In Conclusion

While there are numerous methods of trading, the strategies we have mentioned above has been tried and tested, each with an excellent track record. Beginner traders need to assess each strategy and find which works best for them as an individual, as with platforms, tools and broker choice.