What Are the Best Forex Trading Platforms for Beginners?

You might have heard of the phrase “buy low and sell high,” but have you ever wondered what that means in financial terms? This saying essentially means that you should be cautious when buying a security that has fallen in value and be more likely to buy a security when it is currently selling for less. 

Keeping with this line of thought, investing in stocks or funds that have risen in value is generally considered a good idea. In other words, investors who purchase securities at higher prices are likely to earn higher returns on their investments. For corporations trading, you may be able to get into balance sheet hedging but that is for more experienced traders.

What is a forex trading platform?

Forex trading platforms are web-based trading systems where investors can start trading foreign currencies. When you trade forex, you can buy and sell currencies to take advantage of current price differences between various countries. If a Japanese Yen exchange rate is $107.66 one day and $108.38 the next day, you will make money if you buy the Yen at $107.66 and sell it at $108.38. 

Traders can choose from a wide variety of platforms, so it’s crucial to identify the best one for you. They provide many different functions, including: 

• trading, 
• research, 
• charting, 
• news alerts, 
• discussion forums, 
• trading tips, 
• and much more.

With this being said, identifying the best Forex trading platforms for beginners can help you take advantage of these principles before you start investing your money. Let’s take a look at why that is…

How to identify the best forex platforms for beginners

You want to find a forex platform that provides a trading environment that is as straightforward and easy to use as possible, as well as one that offers low fees and excellent trading tools. When you’re ready to start trading forex, you’ll want to follow these steps to find the best forex platform for beginners: 

• Identify your level of forex knowledge: Before you pick a forex trading platform, you’ll need to identify whether you are a beginner, intermediate, or advanced trader. Beginners should use a platform that offers charting tools that explain the key forex trading concepts like support and resistance levels, trend lines, and moving averages. Trading platforms that offer charting tools that are too advanced for you will make trading much more tricky than it needs to be. 
• Pick a platform that has low fees: Low fees are one of the best ways to ensure that you make money as an investor. You don’t want to pick a platform that charges exorbitant fees, as that will likely cut into your profits significantly.
• Find a forex trading platform that has excellent trading tools: When you’re ready to start trading, you’ll want to find a platform that offers excellent trading tools that are straightforward and easy to use. A forex trading platform that offers trading tools that are too complicated will make trading forex problematic.

3 types of forex platforms for beginners

There are three main types of forex platforms for beginners: 

• Brokers: They are the most traditional type of forex trading platforms for beginners. Like stockbrokers or investment banks, they provide the services of an investment bank and act as your bank, broker, and market maker. They receive orders to buy or sell various currencies and then execute your order by buying or selling the currencies that you specify. 
• ECNs (also called “e-currencies”): They are like online-only forex platforms that provide many of the same trading tools and features that are available on brokers’ platforms, but with a much lower level of regulation. ECNs are generally not suitable for beginners. 
• Online-only platforms: They are the newest type of trading platforms for beginners. A forex online-only platform, also known as a “virtual forex broker,” simply provides you with access to a wide range of trading tools and resources that are accessible from anywhere in the world.

Factors to consider when choosing a forex platform

When choosing a forex platform, consider the following factors to help you narrow down your options: 

• Whether there are any free trials available: Free trials are a great way to give new traders a chance to try out different platforms without committing to anything. If there is a platform that offers a free trial period, make sure to take advantage of it. 
• How user-friendly a forex platform is: When you’re choosing a trading platform, you’ll want to make sure that it’s user-friendly and doesn’t require advanced knowledge or a lot of effort to navigate and use. Ideally, you want a platform that requires very little forex trading knowledge and experience from you. 
• Whether a platform has educational resources: You’ll also want to look for options that have educational resources, including articles, videos, and e-books, that teach traders about forex trading and key strategies. 
• Whether a platform has 24/7 customer support: You’ll also want to make sure that a trading platform has 24/7 customer support available to address any issues that arise, such as problems or issues with trading or accessing your account. You’ll want to make sure that you get help from a real person as soon as possible if something goes wrong while trading forex, as trading can be very risky.

Conclusion

Forex trading is a highly risky market. Even the most experienced traders can miss out on profitable trades and end up losing money instead. That’s why it’s essential to have the right forex trading software so that you have as many chances to make a profit as possible.