Top Forex Trading
Tips for Beginners

The best traders refine their trading skills through practice, discipline and self-analysis to see what drives their trades.  Traders need to learn how to keep fear and greed out of their trading equation. One of the most valuable Forex Trading Tips is understanding key resistance and support levels in the market chosen. Beginner Traders shouldn’t let the Massive Forex Market scare them off even though it might at times feel like the odds are against them. Success in Forex is based on a mixture of preparations and plans.

Forex is a combination of foreign currency and exchange, the process of changing one currency into another currency for a vast variety of reasons which can include:

  • Commerce
  • Trading
  • Tourism

While a large amount of foreign exchange is done for practical purposes, the majority of currency conversion is undertaken with the aim of earning a profit.

Here is a list of the Best Forex trading tips – Revealed by Experts:

Learning how to trade Forex can be a complicated and there are multiple figures available and research done in regards to how many traders successfully make profit in Forex and how many traders incur a loss. The most common figure is that 90% of traders will incur a loss of money and only 10% are profitable. What puts these 10% ahead in the game?

When starting off, a trader will need:

  • A quick wit
  • The ability to work and keep calm under stress
  • The courage to take risks
  • Persistence 
  • The ability to make quick decisions
  • Clear goals 

A beginner trader should assess their risk tolerance very carefully and understand their own unique needs.  To be profitable, traders must recognize the markets and themselves. Gaining self-awareness is ensuring that a trader’s risk tolerance and capital allocation to forex and trading are not unnecessary, unwarranted or lacking.   Traders must have a clear idea of their end destination and how they intend to achieve it and clear goals should be kept in mind. Clear goals will ensure that a traders trading method is capable of achieving the goals they have set for themselves.

Each trader has a unique trading style which will carry a different risk profile, which in turn will require a certain approach in order to be successful.  For example, if a trader cannot go to sleep with an open position in the market, day trading would be their best option. On the other hand, if a trader has funds which they think will benefit from a trade over a period of some months, swing trading or position trading is a great choice. Traders should be sure that their personality fits their chosen trading style, as a personality mismatch will lead to stress and certain losses. 

Choosing the right broker is not a just a tip but a must! Checking and rechecking reviews and recommendations to ensure that their chosen broker is trustworthy, and suits their individual trading personality is extremely important.  At the end of this article we will list our choice of Top 5 Trusted and Regulated Forex Brokers perfect for Beginners.

To select a forex broker, traders should start off by looking for brokers that are regulated in their country. Follow up by reading full length forex reviews and assess the trading costs, tools, research capabilities, customer service, and other features each forex broker has on offer to suite a traders unique trading style. 

There are many companies who offer Forex services and without the basic knowledge about trading platforms, it can be very easy to get confused and end up with an unreliable service provider.

Traders should – 

  • Evaluate the popularity of the platform provider
  • Evaluate how easy and convenient it is to use the platform
  • Evaluate if the platform provides the opportunity to use Internet-banks, credit cards or online payment operators

 

Next tip – Strategy!

Here is an overview of the Top 5 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.  

Use of Trend Lines:

Trend Lines are one of the most effective and easy to master concepts that will help beginners in trading. Traders draw a straight line that connects two different points on a chart – connecting prices together. If a trader can learn how to draw trend lines on their own charts, this will further increase their chances of making a successful trade.  

Breakout:

Breakouts are seen as an excellent indicator for traders as when they occur, they are usually seen as a signal which shows that a new upward trend is beginning.  A breakout will happen when a market moves in a new direction, beyond the support and resistance indicators.  Traders must keep in mind that the participants are the ones who define these levels, showcasing the supply and demand, which can change rapidly.

Momentum:

The Momentum strategy is especially popular with beginners as it is basically a technique in which traders can buy or sell currencies, based on recent price trends. Easy!  Through this, traders can determine how likely it is for a trade to turn out being profitable.  The Momentum strategy is determined by aspects like trading volume or the rate in which price changes and if an asset price moves strongly in a certain direction, a trader will in essence bet that this price will keep moving in that direction.

The Bladerunner Reversal:

The Bladerunner Reversal strategy is widely-considered as one of the most effective forex trading strategies but yet again – it does require a certain level of experience to use.  The Bladerunner Reversal strategy is a price action strategy which aims to spot the most favourable entry points in a certain trade and is a strategy that is suitable across any currency pair.

Next on the list we take a look at Day Trading Strategies perfect for Beginners – 

A strategy tip

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.  

A very common mistake amongst beginner traders are not creating an action plan.  An action plan should include:

  • What does the trader want from the trade?
  • A clear goal.
  • Clear profit goals.
  • Risk tolerance level
  • Methodology and evaluation criteria

Once a plan is in place, traders should make sure each considered trade falls sticks to the plan!  Traders should keep a close eye on the Forex market and keep all the tips they learn in mind as each new trading day will bring a new lesson.  Traders should analyse news, trends, and financial processes, plus study the basics and practise! 

Other trading tips include 

 

  • Take a “time-out” especially during stressful trading sessions. 
  • Learn about trends as the ability to spot trends is a valuable one.

As Promised – Here is an overview of the Top 5 Trusted and Regulated Forex Brokers perfect for Beginners.

The best forex brokers for beginners will offer a trader a user-friendly web-based platform, a solid reputation, a strong variety of educational and last but not least - access to quality market research.

Tickmill

TickMill

TickMill offers traders 2 basic account types, accessible through the popular MetaTrader 4 platform and offers market execution with average speed of 0.3 seconds, variable spreads, leverage up to 1:30 and micro tradeable lots. Tickmill is regulated as a Securities Dealer by the Seychelles Financial Services Authority (FSA).

Tickmill publishes webinars and seminars to help beginner traders get their start in the market and has also made available a detailed eBook. Additionally, the analysis blog and TradingView analysis tools offer a new perspectives on currency markets.

At Tickmill, Traders can learn in the following ways:

  • Demo account
  • General educational videos
  • Platform tutorial videos
  • Webinars
  • Quality educational articles

The Classic account is commission-free and The Pro ECN carries a charge of a small commission fee and get tighter spreads.

Account type

Minimum deposit 

Minimum trade size

Maximum leverage

Spreads (& Commission)

Classic

$100

0.01

1:30

From 1.6 pips

Pro

$100

0.01

1:30

0.2 pips + $4 / Lot*

 *Commission is calculated per standard lot of 100 000 units round trip.

TickMill supports the MetaTrader4 (MT4) platform, available for Mac/Windows PC, Android & iOS devices and as a web-based version and accepts a wide range of payment methods: via credit/debit cards, (Visa, MasterCard, Maestro), bank wire, Skrill, Neteller, dotpay, and Sofort.

HotForex

HotForex

HotForex provides users a simple, straight-forward and transparent trading platform which perfectly suited to both beginner and advanced traders alike. Users can easily access commission-free trading on a wide range of markets, plus advanced trader tools for the MetaTrader trading platform.  HotForex is on the list of Top 100 Companies by World Finance Magazine and is regulated by multiple major international organizations including the FCA, CySEC and the FSCA.

Trading Conditions

Minimum Deposit

USD 5

Base currencies

USD, ZAR

Number of FX Pairs

51

Hedging Allowed

Scalping

Swap-Free Accounts

Average Spreads

EUR / USD

0.7

GBP / USD

0.5

USD / JPY

0.2

Is HotForex Safe?

Regulated by CySEC (license 183/12) 2012, the FCA (license 801701) since 2013 and the FSCA (FSP 46632) since 2016, HotForex adheres to strict internal processes and auditing policies.

Trading Conditions

All accounts have variable spreads, and deposits and withdrawals at HotForex are free.

Account Types

HotForex provides clients with a choice of six account types, dependent on location (Europe will only have access to three accounts), and trading conditions vary as the minimum deposit increases.

 

Min. Deposit

Max. Leverage

Min. Spread

Commission

Auto

USD 200

500:1

1.0 pips

None

HFCopy

USD 300

Variable

1.0 pips

None

Islamic

USD 100

1000:1

1.0 pips

None

Micro

USD 5

1000:1

1.0 pips

None

Premium

USD 100

500:1

1.0 pips

None

Premium Pro

USD 5000

400:1

1.0 pips

None

Zero

USD 200

500:1

0.0 pips

$3.00

The spreads on all accounts are variable, where the Zero account has the tightest spreads on FX pairs – an additional commission is charged based on the trading volume.

Forex.com

Forex.com

Forex.com is an online broker which was founded in 1999 and offers Forex, Indices, Commodities, Equities and Cryptocurrencies trading with a minimum deposit of $500 needed to make a start. Forex.com is regulated by several financial authorities, including the top-tier Financial Conduct Authority (FCA) in the UK or the US Commodity Futures Trading Commission (CFTC).

Forex.com is the perfect choice for those just making a start in the market and has excellent customer service on offer to ensure that they are available to especially beginner-traders plus a great offering of educational materials.

At Forex.com can learn in a list of useful ways:

  • Demo account
  • Platform tutorial videos
  • General educational videos
  • Quality educational articles
  • Trading glossary
  • Trading knowledge quiz

Traders can trade in:

  • Over 4500 instruments
  • Over 80 currency pairs

Forex.com Trading benefits include:

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Guaranteed stop loss
  • Offers Negative Balance Protection

Forex.com Trading Accounts on offer include:

  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • STP account
  • Islamic account

With Forex.com, the minimum and maximum trade requirements vary depending on the trader and the instrument and all accounts support a wide range of languages including English, Chinese, Arabic to name but a few.

Interactive Brokers

Interactive Brokers

Interactive Brokers is an online broker which was founded in 1977 and offers Forex trading of over 100 instruments and over 10 currency pairs on a user-friendly custom trading platform, available as a browser-based web application.  Interactive Brokers is regulated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the New York Stock Exchange and the Financial Conduct Authority.

Interactive Brokers offers beginner traders a wide range of excellent educational materials and tools, including videos, courses, webinars, a glossary, plus a demo account.

At Interactive Brokers those just starting off can learn about the trade and market in the following ways:

  • Paper (demo) account
  • Online courses
  • Webinars
  • Educational videos
  • Platform tutorial videos
  • Glossary
  • News

Interactive Brokers is a global broker and has a head office in United States and traders need to make a minimum deposit of $10000 as a start.

Interactive Brokers Trading benefits include:

  • Allows scalping
  • Allows hedging
  • Offers STP

Interactive Brokers Trading Accounts Offered include:

  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • STP account
  • Managed account

Interactive Brokers support a wide range of languages including English, Mandarin, Cantonese, Nihongo and more.

oanda best broker

OANDA

Oanda offers beginner-traders live and pre-recorded webinars which ranges in a topics from basics to expert trading.  OANDA is regulated by top-tier authorities, such as the US Retail Foreign Exchange Dealer (RFED) and the UK’s Financial Conduct Authority (FCA).

Multiple tools for education on offer include:

  • Demo account
  • Educational videos
  • Platform tutorial videos
  • Webinars
  • Texts

OANDA is the Most Regulated Forex Broker and operate across six of the most credible authorities including:

  • Australia AISC (Australian Securities and Investments Commission)
  • United States CFTD (Commodity Futures Trading Commission)
  • Europe and UK FCA – (Financial Conduct Authority)
  • Japan IFFA (Institute Financial Futures Association)
  • Singapore MAS (Monetary Authority Of Singapore)
  • Canada IIROC (Investment Industry Regulatory Organization of Canada)

OANDA Focuses on Transparency 

OANDA is focused on pricing transparency and customer satisfaction and they offer real-time data from liquidity providers and finds mid-points across instruments. When it comes to customer support, OANDA boasts multiple customer service awards for 24 hours/6 days a week support. Live chat, emails and phone support is available. 

In Conclusion

The steps above will help to lead traders to a structured approach to trading and should help them become a more refined and profitable trader. Trading is an art, and the only way to become truly successful is through consistent and disciplined practise.  Unfortunately, there is no one tip to riches and traders must keep in mind, that any Broker who claims that they have the “secret to success” should best be avoided.