Best 10 Forex Trading Apps of 2019
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As the largest financial market in the world, the forex market offers a wide range of assets to trade and speculate from. Both traders and investors should be aware that even though the brokerage service offered by many firms is very similar (even the same), their major differentiator’s asides from pricing are their apps and software.

There are many different providers offering apps and software for forex trading in the market today. This makes it key for investors to analyze which one is the option that will suit better their trading profile, personality, and overall their portfolio.

Despite that fact that this has made the market more accessible, it has also opened a new door for problems associated with the providers and their platforms. At the end of the day, a trading app will be the spearhead that will help a trader achieve the highest returns out of their analysis and their trades.

If chosen poorly an app could easily become the Achilles heel of any portfolio, reducing performance and interfering with the ability of a trader to make solid and correct desitions based on available data.

With such a broad range of apps and software to choose from, it is important for aspirant traders to take their time and analyze in detail the offering before making a desition. Any beginner trader should be aware that there is not a perfect trading app that will work for everyone, the desition should be taken based on their own profile and the needs for their own portfolio.

Top 10 Best Forex Trading Apps of 2019

It is fairly common to see brokers spending large sums of money developing their own software and proprietary trading apps. This in order to differentiate from other options and also to add value to their overall service/product. On the other side, many brokers prefer to use an app developed by a third-party and that it is also shared with other brokers as it is cheaper and allow them to offer significantly more competitive prices. These are the best trading applications and their respective brokers:

Top Proprietary Applications of 2019

1. eToro

eToro starts this list due to its size but also because it has become one of the best overall brokers available today. The company is a leading force in the retail trading market, setting the bar and marking the pace of the overall sector. Their trading app is seen by many as the best example of what a top tier broker should deliver in 2019.

Even though the company offers a powerful application, it has been delivered in a very simple and intuitive package. This allows beginner traders to familiarize with the basics of trading in a much faster and simpler way. Ever since it was founded eToro has focused on combining their social network with a brokerage service, allowing both beginner and professional traders to share their insights and to grow as a community. This model permits new traders to copy in real time the trades made by professional, allowing them to learn while profiting.

With more than 10 million active users around the globe, eToro has proven to be a strong option for anyone looking to start their career as traders. It is important to mention that the eToro app has been upgraded to work with the most common asset classes. This means that investors can also access Stocks, CFDs, ETFs and even mutual funds from the same platform.

If you are an individual with no previous experience in the financial markets I recommend you to try with eToro, not only you will gain access to a powerful and friendly platform but also to all its educational content.

Sign up to Trade at eToro Now!

Technical Details

  • Minimum Requirements: $200 Minimum Deposit
  • Leverage: eToro offers a leverage of 1:30 on major currency pairs and 1:20 for non-major pairs. Stocks and CFDs offer flat leverage of 1:5
  • Regulation: FCA, CySEC, MiFid, FinCEN
  • Spreads: Major Pairs offer a minimum spread of  3.0 pips (EUR/USD)
  • Type of Broker:
  • Best Feature: Social Trading/ Educational Material
  • Recommended for: Beginner Investors looking to learn from more experienced traders
  • Asset Coverage Besides Forex: Stocks, CFDs, ETFs, Funds, Commodities, Cryptocurrency
  • Application: Proprietary web and mobile app available for Android and iOS

Pros

  • Best in class copy trading platform
  • Proportional replication of signals
  • Rich educational section
  • User-friendly platform
  • Easy to manage platform and portfolio

Cons

  • No cryptocurrency deposits
  • Does not offer any Metaquotes app (MT4-MT5)
  • $25 USD withdrawal fees
  • Performance data of traders could be improved

Notes: Just like the life overall, when it comes to forex trading you get what you pay for. Etoro might not be the cheapest option available in the market, but their great execution and social trading platform are worth the difference in price.

Sometimes it is better not to aim for the cheapest option but to think about long term growth and the opportunities that some of these features will offer in the long run.

2. Naga Trader

If you are in Europe and for some reason, you are looking for a healthy alternative to eToro, Naga Trader might be one of your best available options.

The idea behind the company was a smartphones only app dedicated to social trading. After its big success, the company decided to venture even deeper into the market by acquiring an existing and working broker.

Following the trend of most brokers, NagaTrader delivers a minimalistic and very simple app that allows investors to trade most asset classes. It is easy to see how the company has tried to centralize under their platform both social trading and robo-advisor capabilities. This makes the platform even more desirable for traders that are interested in elevating their trading with an automatic strategy. Please note that all investment advisors available in the app are managed by an AI software and not a person.

A key point to mention is that the company lags against eToro when it comes to technical analysis and charting capabilities.

It is important for traders to understand that this is not a startup company but a well-rounded enterprise, as Naga Trader is backed by one of the biggest investment funds in China (Fosun Fund) and it is partially owned by one of the oldest banks in Germany (Hauck & Aufhauser bank).

Naga Trader offers an ecosystem of different services ranging from copy trading to Robo-Advisors and even wealth management.

Technical Details

  • Minimum Requirements: $500 Minimum Deposit
  • Leverage: 1:30 available for most FX Pairs
  • Regulation: CONSOB, CySEC
  • Spreads: Average spread is 1.9 pibs (EUR/USD)
  • Type of Broker: NDD
  • Best Feature: Social Trading
  • Recommended for: Beginner Investors looking to learn from more experienced traders
  • Asset Coverage Besides Forex: Stocks, CFDs, ETFs, Cryptocurrency, Indices, Commodities
  • Application: Proprietary web and mobile app available for Android and iOS

Pros

  • Well designed App and Web platforms
  • User-friendly and easy to use interface
  • A wide range of trading instruments
  • Unique Social Trading Service

Cons

  • Many options and features can be a bit confusing
  • Fees and commissions can be high
  • The web trading platform might be too simple
  • No MT4-MT

3. 24Option

24 Option started their life as a binary options provider, due to all the controversy that follows that sector the company decided to change its business model and to focus on Forex Trading. With all the experience gained from the options business, it was pretty easy for the company to develop its own platform which resulted in a heavy contender to any other fully forex dedicated broker in the market.

The company has become known for its charting capabilities, specially designed for investors interested in using a “technical analysis” based strategy as it offers a wide range of indicators, studies and built-in strategies. Another important characteristic to mention is that even 24Option offers access to some of the major asset classes besides forex, allowing investors to trade Stocks, CFDs, ETFs, and Cryptocurrencies.

Many new investors commit the mistake of not paying enough attention to the reliability of a broker and especially their apps. It is crucial to be able to open and close positions when needed, and from anywhere. Their mobile app has proven to be as powerful as their desktop interface, making it easy for traders to place and manage positions from anywhere that has an internet connection.

As part of its balanced service, the company has developed a vast and remarkable library of educational and technical content. This is a strong pro for anyone starting their forex trading career.

It has not been easy but the company has done a great job defending their name and proving that they are trustworthy and a reliable broker to any user.

Technical Details

  • Minimum Requirements: $250 Minimum Deposit
  • Leverage: 1:30
  • Regulation: CySEC and IFSC
  • Spreads: Average spread is 2.3 pibs
  • Type of Broker: DD Market Maker
  • Recommended for: Traders interested in technical analysis and mobile trading
  • Asset Coverage Besides Forex: Stocks, Commodities, CFDs, and Cryptocurrencies
  • Application: Proprietary Web Platform and Meta Trader4

Pros

  • Offers the MT4 platform in addition to the 24option WebTrader
  • Highly regulated environment for traders
  • Good selection of payment methods available
  • Helpful live chat representative is quick to respond.

Cons

  • Simplistic trading platform
  • Simplistic offering, may not be as suited to advanced traders
  • Not available to US residents or citizens

Note: For any trader interested in using the brokerage service of 24 Option but not their platform, the firm is currently offering access to MT4 for certain accounts.

4. Plus500

While many brokers try to expand their range of services as much as possible, Plus500 took a different approach. The company focuses on offering the best service as possible, delivering nothing but excellence to the limited range of services offered.

The company offers access to a wide range of financial markets at a very competitive cost with low spreads and no commissions. If you are a conscious trader looking the get the cheapest broker without sacrificing the peace of mind of a heavy regulated institution, then this might be the way to go. It is common to see investors nervous about the lack of protection that certain jurisdictions offer. In the case of Plus500, its main regulator is also one of the toughest in the world, the FCA in the UK.

Another important characteristic to mention about the company is that its platform is actually one of the best available in the market. The applications might not be as powerful as some of the other names from this list, but its simplicity and designed are remarkable. The company has successfully delivered seamless integration between its desktop and mobile apps, allowing investors to always have a reliable source of access for their trades.

It is fairly common to see brokers having problems when delivering access to so many different asset classes with just one single app, it usually ends up in a heavy an very complicated platform. Plus500 got to manage their way around this problem with a minimalistic and user-friendly platform.

Plus500 is definitely a desirable option for anyone looking to get a minimalistic and simple trading experience. The overall package offered by the firm should be enough to help any trader sleep at night, knowing that they are doing business with a reputable company that is also publicly traded in the London Stock exchange.

Technical Details

  • Minimum Requirements: $100 Minimum Deposit
  • Leverage: 1:30
  • Regulation: FCA, CySEC
  • Spreads: Variable spreads with no commissions
  • Type of Broker: DD Market Maker
  • Best Feature: Plus500 is a publicly traded company, this adds another layer of credibility to the overall exceptional service and model
  • Asset Coverage Besides Forex: Stocks, ETFs, CFDs, Options, Commodities, Cryptocurrency
  • Application: Plus500 offers its proprietary state of the art platform, easy to easy and powerful

Pros

  • 2,000+  CFD products available for trading across global markets, including cryptocurrency CFDs
  • Offers guaranteed stop-loss orders
  • Multiple regulations from different countries. The regulation includes FCA, ASIC, CySEC, and MAS.
  • Over 100 chart indicators are available in the web platform

Cons

  • Lack of content and news headlines
  • Lack of Trader Education to clients
  • No phone support offered

5. Oanda

Oanda is one of the few US regulated brokers that can offer forex trading in the country, making them holders of a big piece of the US business.

With more than $70 billion in assets under management in their private equity business alone, it is clear to see the overall mysticism and prestige associated with the firm.

Even though they offer other markets like futures, bonds, and CFDs, their core business is focused on Forex trading. The company currently offers most of its services to institutional players but also to retail investors.

The company offers access to several proprietary apps, allowing investors to choose based on their necessities and profile.

One of the most important is its web hybrid platform, this app is a combination between their proprietary execution panel and the charting tools of tradingview which is one of the best in its class.

In addition, the company currently offers a Meta Trader license for institutional investors who are looking to automatize their process.

It is worth mentioning that the mobile app of Oanda lags against their desktop and web trader version. The app is still too rough compared to the major brokers from this list. Never the less it is a reliable tool for anyone on the go, but a defenetely not standalone option.

If you are a US Citizen/Resident interested in starting into the Forex Market I suggest you open an account with Oanda. The overall service, platform and research available will make your life as a trader way easier than with any other broker.

Technical Details

  • Minimum Requirements: $1 Minimum Deposit
  • Leverage: 1:50
  • Regulation: CFTC, FCA, NFA
  • Spreads: Average spread is 1.4 pibs
  • Recommended for: US residents that are interested in Forex more than any other asset class.
  • Asset Coverage Besides Forex: Commodities, Bonds, Indices
  • Application: Proprietary Platform and MT4/MT5

Pros

  • Easy-to-use web trading platform
  • Nice and digital account opening
  • Powerful research tools
  • Low trading fees

Cons

  • Only FX, and some CFDs
  • Bad customer service
  • Pricey withdrawal

6. Trading 212

If we compared the size of Trading 212 to any other name of this list it will make this broker look tiny in size, but by no means, it can be considered as a second tier broker. Trading 212 is a well rounded and stable boutique broker from the UK. With more than 200.000 active users in 65 countries and a license from the Financial Conduct Authority (FCA) in the UK, which is one of the toughest regulators in the world.

Even though the broker was designed around Stock Trading and not Forex it still performs perfectly.

The company has made its way differentiating themselves from the rest of the market by offering analytics and educational resources as no other broker does. Providing technical analysis with models available only for sophisticated traders and institutional investors.

Trading 212 offers a proprietary system and trading app designed specifically for technical analysis but also taking into consideration the overall simplified business model of the firm. The platform is especially useful for new traders that are starting their career and that are interested in learning more about technical analysis. In addition to a reliable source of execution and analysis, the company offers a large library of educational content developed by some of the best traders of the UK.

Free things are nice but they are usually not as good as we expect, it is difficult to find an example where free service is better than the paying ones, but Trading 212 is one. If you are a new trader or a veteran of the markets, this broker should become part of your repertoire of accounts no matter the size of your portfolio.

Technical Details

  • Minimum Requirements: $100 Minimum Deposit
  • Leverage: 1:30
  • Regulation: FCA
  • Spreads: Average spread is 1.2 pibs
  • Type of Broker: NDD
  • Best Feature: The firm offers a wide repertoire of educational content designed to help beginner traders
  • Asset Coverage Besides Forex: Stocks, Commodities, Cryptos, and Indices
  • Application: Proprietary Software

Pros

  • Maximum reliability
  • Sophisticated trading platform
  • Great selection of trading tools
  • Social trading through traderbird

Cons

  • High trading fees
  • The CDFs for stock shares have commissions
  • No MT4 Platform Available

7. TD Ameritrade

The Thinkorswim platform was created in the late nineties by Tom Sosnoff, a veteran investor and trader who believed that the investing in stocks and derivative instruments could become popular to retail investors with the help of a completely dedicated software.

After a decade of its founding, Thinkorswim was sold to TD Ameritrade. Officially becoming the spearhead over which the broker was renewed. TD Ameritrade is one of the most important brokers in the US, with total assets exceeding $1 Trillion in more than 11 million client accounts.

It is important to be aware that even though TD Ameritrade owns one of the best apps and platforms available in for trading in the world, thinkorswim was not designed with the idea of Forex Trading which makes it a little clunky as it lacks tools that many Forex oriented apps offer.

TD Ameritrade differentiate themselves from the rest of the brokers available globally because of their app and the fact that they are a multinational group that offers its clients with multiple other services besides investing.  Some of them are :

  • Banking
  • Life Insurance
  • Retirement and Wealth Management
  • Annuities

Technical and fundamental analysis are the two elements over which most investors develop their strategies, and structure their portfolios. Thinkorswim exceeds expectations with a swiss knife application that not only is powerful but is also intuitive and friendly to all investors.

If you have used a Bloomberg Terminal in the past, you will find yourself close to home with Thinkorswim. On the other hand, if you have never been close to a terminal it might take you some time to understand how to use it, but it is definitely not difficult. In order to mitigate the impact on new users, the firm offers a vast library of educational content which makes it even easier for new users.

This application was designed for investors who are interested in managing the complex structure of analysis and trading. If you are a power user who is interested in Forex, then Thinkorswim might be the overall best option in the market.

As mentioned above, some tools of fully dedicated forex apps may be missing but it compensates with their own approach to what Forex Trading should look and be like.

Technical Details

  • Minimum Requirements: $2000 Minimum Deposit
  • Leverage: 1:50
  • Regulation: SEC, FINRA, NFA, CFTC
  • Spreads: No Spread, the company charges a commission based on the number of lots
  • Best Feature: State of the art platform available for most common devices
  • Recommended for: All types of investors. This application is in the sweet spot between a powerful software and a minimalistic and intuitive application
  • Asset Coverage Besides Forex: This platform offers access to almost every single type of publicly traded asset in the world
  • Application: The Thinkorswim platform represents what any other trading software should emulate

Pros

  •  Think or Swim has some of the best charting tools among brokers
  • Over 400 technical studies and 20 drawing tools available
  • Sophisticated enough for advanced traders but also simple enough for any new beginner
  • Desktop and Mobile apps are synced through a cloud

Cons

  • Slightly higher commissions
  • Broker-assisted trades are more expensive than in any other broker
  • The application has many different windows, this could be overwhelming for some users

Multi-Broker Apps

1. cTrader

Over the years many brokers have decided to go for a third party option in order to standardize the market and to reduce costs at the same time. We’ve seen many of these applications utilized by several brokers but in the long run, only three of them have survived time. Even though some of these applications might not be as pretty as some other proprietary model, they are incredibly powerful and are also the weapon of choice by many professional traders, mostly due to all the customization available and the open code interface

 

cTrader was designed with the intention of offering the market a strong alternative to Meta Trader. At first glance, the platform is way more appealing than metaquotes as it offers all the pros from its competitor with a more modern package.

One of the benefits from the platform is that unlike its competitors, the application counts with a seamless interface between its mobile and desktop platform.

Over the past few years, more and more brokers have adopted this application and have helped to popularize it over the world. Another characteristic to mention is that the creators of the app offer a full suite of other trading related applications, which are intended to support the idea of a completely seamless service. The most famous are:

  • cAlgo: Automated Trading
  • cMirror: Social Trading – Copy Trading

2. MetaQuotes MT4 & MT5

The MetaQuoutes platform is one of the most used systems for retail and institutional trading. While essentially MT5 is the successor of MT4, both have very different characteristics and unique features. This is one of the main reasons why the oldest one was never taken of service and continues to be one of the best available resources for technical analysis and execution.

MT4 : This version focuses solely on FX Trading and decentralized exchanges, effectively trading the OTC market. Even though this app is more than 5 years older its successor, it still has a very attractive and minimalistic appearance.

Meta Trader 4 might not have as many indicators as its successor but it is still a tough platform that will suit the demands and necessities of most traders.

MT5 : The platform was designed to provide better access to other asset classes outside the forex environment like Stocks and commodities. This was needed in order to overcome the differences between a centralized and a decentralized exchange.

The other key point was the necessity to offer US users with a platform that was in compliance with the “no hedging” rule also known as FIFO (First In First Out) which is a mandated for all US users.

Also, note that MT5 offers a wider range of indicator and technical studies than MT4. Even with FIFO, this makes MT5  a very attractive option.

You can’t really say that one is better than the other because they are very different. For anyone who is interested in a MetaQuotes Friendly Broker, I would suggest you to try both to see what fits best to your trading style.

3. TradingView

Tradingview offers the best platform for technical analysis currently available in the market. Their platform is especially perfect for any beginner trader interested in learning more about technical indicators and analysis.

This is a platform that has gained traction and popularity in the last 4 years, as more and more traders use it for its charting tools and their analysis.

It is important to mention that the platform offers access to analysis of the most important asset classes in the world, from Forex,  Stocks, Bonds, ETFs, Mutual Funds, ETNs, ETPs, and even Cryptocurrency.

One of the key elements that make the platform so great, is how intuitively and easy to use it is. Besides offering execution, charting tools and live quotes the company also offer their service as a social trading platform allowing investors to share analysis and trades.

For any new trader interested in learning from professionals, tradingview is an option that can be passed on, as it offers tons of content posted every day. It is not difficult to find yourself reading an article of a HedgeFund manager explaining certain ideas and views of the market.

Top Brokers with Third party Apps of 2019

1. FXPRO

Whenever you analyze a broker it is important to understand the countries and regulators that rule over the company, as there are many differences between them and especially in Europe!

FX Pro is regulated by the Financial Conduct Authority in the UK which is always a good sign of stability and capital safety.

Even though the company started as a solely Forex Broker, it has drifted into other sectors offering their top tier execution to almost 1 million customers in 173 countries around the globe.

While its own proprietary system is offered as part of their package, it is definitely not as good as any of other options like cTrader and the MetaTrader 4/5. FX Pro is known for its proprietary interfaces over these brokers, this helps for unified experience between the apps and the broker.

In synthesis, FX Pro offers and deliver a very complete experience and brokerage service to its customers. A key reason why an investor may decide to go for FX Pro instead of another broker would be because of pricing or in the look of better educational resources.

Technical Details

  • Minimum Requirements: $100 Minimum Deposit
  • Leverage: In order to continue offering high levels of leverage the firm has created multiple subsidiaries in major financial hubs around the globe. Leverage levels will depend on the country you are situated (1:30 to 1:500)
  • Regulation: FCA, DFSA, CySEC, MiFid, FSB, SCB
  • Spreads: Average spread is 1.9 pibs
  • Type of Broker: NDD
  • Asset Coverage Besides Forex: Stocks, ETFs, Commodities, CFDs
  • Application: c Trader, MT4 & MT5

Pros

  • EAs can be used to capitalize on algorithmic trading and scalping strategies
  • FxPro offers a range of advanced tools and indicators. On top of that, you get a choice of MT4, MT5, and cTrader
  • They are a reliable broker that is well regulated and give access to multiple types of trading platforms

Cons

  • FxPro does have a few negative points, primarily a high minimum transaction size and a temperamental website, but overall the pros far outweigh the cons
  • Weak educational platform

2. Pepperstone

Pepperstone was born as a local alternative in Australia to the European Forex brokers. Ever since its doors were open in 2010 the company has continued growing and improving their highly competitive business model and their platform.

The company currently offers access to major global markets beside forex. Some of the other assets available in Pepperstone are commodities, CFDs and even Cryptocurrencies.

When it comes to the app and its platform, the company decided to go a different way than many other brokers and instead went for already developed and well-known applications. Just like some other names from this list, Pepperstone offers both Metaquotes systems and also cTrader and the full suite of apps.

There is not really a huge differentiator between the open code of these applications and the one found with Pepperstone, but it proves how great these apps are as most brokers only change their visual appearance in order to make them look tailormade.

This firm is a perfect option for any Australian citizen interest in starting their forex trading career, the only pain point about the broker is that it does not offer access to stock or CFDs stocks trading.

Technical Details

  • Minimum Requirements: $200 Minimum Deposit
  • Leverage: 1:500
  • Regulation: ASIC, FCA
  • Spreads: Average spread is 0.5 pibs
  • Type of Broker: Pure ECN
  • Best Feature: All trades are dealt through a third party, usually a bank. This helps with the transparency for execution, essentially eliminating conflict of interests between the broker and its users.
  • Asset Coverage Besides Forex: 
  • Application: cTrader, MT4 and MT5

Pros

  • Great customer service
  • User-friendly and fast account opening
  • Easy-to-use and nice looking platforms

Cons

  • Limited product portfolio
  • Limited research
  • Limited education
  • Withdrawal fee

3. AvaTrade

One of the key factors that can make or destroy a broker is its reputation. In the case of AVATRADE, the firm is one of the best highest ranking brokers in the world. The company is known for its transparency, its crisp execution, and overall great service.

Ava trade is the broker that gets closest to a fiduciary level since it is clear that the company do as much as they can to protect and guide the investor through their journey, defending the interests of its user before theirs.

As part of an expansion plan, the company is aiming to get approved in the US which is one of the toughest regulations of the Forex Industry.

Overall if you are looking to get peace of mind of where is your money and who is providing you with the execution of your trades, AVATRADE is definitely of the names that should be highly considered.

Technical Details

  • Minimum Requirements: $100 Minimum Deposit
  • Leverage: High Leverage 30:1 (400:1  is available for professional accounts over $500k)
  • Regulation: Ireland Central Bank, ASIC, Financial Futures Association of Japan, FSCA
  • Spreads: 1.3 Pibs on major currency pairs
  • Type of Broker: NDD
  • Best Feature: Guardian Angels analyze your account and trades to help you lower your risk and to identify recurrent mistakes.
  • Recommended for: Traders interest in a broker with a high reputation, especially if you are a resident in Asia
  • Asset Coverage Besides Forex: Stocks, ETFs, CFDs
  • Application: Several Proprietary Apps and also MT4

Pros

  • Support for AvaTrade platforms on desktop and mobile as well as MetaTrader 4.
  • Guardian Angel system uses advanced analytics to manage your risk.
  • Customer support available in 14 languages.

Cons

  • No MetaTrader 5 support (website says that it is coming soon)
  • Inactivity fee on stagnant accounts
  • Desktop platform features are limited on Mac computers

Types Of Brokers

DD - Dealing Desk

Dealing desks are essentially market makers. This means that in any trade the broker would be taking the other side of the trade. Many of these brokers use their own liquidity pool and does not use any external provider.

There is a lot of controversy around this type of model as essentially your loss is their profit, which leads to a big conflict of interests. But even with a bad name in the markets, these brokers are utilized by many traders as they offer certain features like a very fast execution and also fixed spreads.

NDD - Non-Dealing Desk

On the other hand, NND brokers only provide access to the interbank maker. In other words, they route the transaction to the fastest liquidity provider in order to get the trade filled.

This group is divided into two:

  • STP – Straight Through Processing: In STP mode, transactions are fully computerized and are immediately processed on the interbank market without any broker intervention.
  • ECN – Electronic Communication Network: ECN brokers provide and display real-time order book information. The orders were processed and the prices offered by banks on the interbank market.

Frequently Asked Questions

1. What is the best app for beginner traders?

Beginner traders should focus on learning as much as they can since this is what will eventually define success or failure. Many traders commit the mistake to choose fancy brokers with shiny platforms, it is recommended for beginners to aim for simplicity as it will help prevent errors in their early career.

Our recommended platform for beginners is eToro, as it is a great package of value, analysis, educational material, and even social trading.

The firm offers a distinctive model under which investors can copy the trades of a more experienced investor, essentially profiting while learning.

2. How much money do I need trade Forex profitably?

Investors should be aware that minimums necessary for trading will differ based on the strategy, broker and even personal goals. The amount of capital required to be a swing trader who will be aiming for longer and bigger movements in price is bigger than someone scalping the market.

Currently, there are several brokers offering their systems worldwide with accounts as small as $100 and some even ranging in double digits. While it is technically possible to make an account grow from such a small seed, it is important to be conscious and realistic to the goals that are being imposed.

On average a relative strong size for a forex account should be between $3,000 and 5,000, this would provide enough space for actively trading.

3. Should I stay away from Market Maker Brokers?

As electronic trading has become more accessible to more individuals, regulators have tightened the requirements for brokers to offer their services and with this improving the overall market.

Over the years market makers gained a bad reputation as some sketchy brokers used to manipulate prices to benefit themselves. While this is a practice that is heavily controlled nowadays, there are always reports of individuals complaining about spikes in prices that didn’t happen outside of the broker in question.

Before choosing a broker it is important for investors to know the regulations surrounding it, as some regulators are more strict than others and laws change between regions.

Today, market markets range from small boutique companies to multinationals that are even publicly traded and that take extreme precaution over their reputation. It is still possible for less regulated brokers to present irregularities, but as mentioned before the regulation is so tight that it is perfectly safe to use their services.

This type of broker is totally fine if you aim for the ones regulate

4. What is the best level of leverage for a beginner trader?

Just a few years prior I remember seeing brokers offering up to 1:3000 worth of leverage which is simply just an insane number considering that by only depositing $1000 you would gain access to buy and execute transactions for as much as $3,000,000. In the paper, it sounds great but in reality, high leverage will ultimately destroy the account of the most inexperienced traders.

Many investors fail to understand that even though their buying power is being increased by the high multiple of the offered leverage, this also means that in a big transaction if something goes south the loss would be dramatically higher as well.

If you are using a European broker, chances are you are only going to be offered a low leverage account with a level of 1:30, while non-European brokers can still offer thousands of percentage of leverage to any type of investor.

Leverage should be chosen after analyzing the strategy that the trader is planning on following, for some of them it will surely be required access to more buying power but for more beginners, if you can stay away from highly leveraged accounts you will perform better in the long run.

Conclusion

Now more than ever there is a vast range of brokers and apps for any type of investor. It is important for individuals to understand the strategy they want to follow, their goals and their risk profile before committing to a broker or an app. At the end of the day, these are going to be the tools that will forge a traders career for good or bad.

A common mistake about choosing a trading platform or a broker is that many investors tend to lean towards applications that are more sophisticated and offer the largest number of indicator and studies, instead of going for the one that suits their trading style and risk profile the best.

If you are an individual with little to nonexperience in the financial markets, I would recommend aiming for a broker that offers simplicity, reliability and educational material. This is what will really help a new trader grow and improve.

 

About the Author:

Vidal Arias

Vidal is an experienced Strategist and Portfolio Manager with a keen interest and passion for the financial markets. During his career, he has developed excellent market timing skills, focusing mainly on the macro analysis of the US Equity Market and the overall US Financial Market. He started his career as a financial analyst for a major American bank and continued his way into the trading desk as a Sr. Trader and later as a Portfolio Manager for an Offshore Hedgefund in Europe. Linkedin: vidalarias Email: vidal@dojiventure.com

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