Best Brokers For Beginners: Trading Online
What is a trading online?
When you are trading online, you are buying and selling instruments from various asset classes such as forex, stocks, indices, commodities, cryptocurrencies, precious metals and energies. You can analyse various markets using technical analysis (charting tools) and fundamental analysis (economic news calendar) and speculate on the direction the price of the selected instrument will move. If it moves in your favour, you can make profit whereas if it moves against you, you will make a loss. For more detailed information, please see our how to trade online guide.
What is an online broker?
When you trade online, you need an online broker who will process your buy and sell positions through to the markets. These brokers offer user-friendly trading platforms and charge a small fee for using their brokerage services. In addition to market access, they can also offer other services such as market analysis, social trading platforms, educational resources and managed accounts. Online brokers have made trading the markets easily accessible to anyone with an internet connection. Aspiring traders from all over the world can sign-up with a broker, download a trading platform and trade online within minutes. You can see a list of our best online brokers.
Best Brokers For Beginners: MetaTrader Trading Platform
What is a trading platform?
A trading platform is used to analyse charts of various trading instruments and to place/manage trade positions. They will include a vast array of trading tools for conducting in-depth chart analysis across multiple timeframes and on different chart types. These tools include technical indicators, drawing objects and economic calendars. Trading platforms are available for desktop, web and mobile devices. You can see our best trading platforms for a more detailed guide.
Best trading platforms for beginners
It is important that a beginner trader has a trading platform they feel comfortable using, ideally one that has a quick learning curve and range of tutorials to help new users familiarise themselves with it. One of the most popular and best trading platforms for beginners is MetaTrader. The MetaTrader platform is used by millions of traders of all experience levels from around the world. It is well known for being user friendly and including a wide selection of trading tools to assist traders with all different trading strategies. It has a fully customisable intuitive interface and is simple enough for beginners whilst having enough advanced functionality to satisfy the more seasoned investor. MetaTrader is available as a desktop platform and mobile trading application for iOS and Android devices. It can also run directly in web browsers without needing to download or install any additional software. For more information, please see our best MetaTrader brokers.
What makes a good broker for beginners?
There are various factors to consider when looking for an online broker if you are a beginner to online trading. Some of the most important things will be that they keep things simple and offer guidance as you start your trading journey. They should be available to offer excellent support around the clock but also know when to take a step back if you are happy to get stuck in and learn to trade yourself. Ideally, they will provide one of the best trading platforms for beginners, MetaTrader. The broker should be regulated by a top tier regulator, have discounted brokerage fees and offer a range of asset classes. Educational materials such as trading guides, tutorial videos and webinars can be useful to help beginner traders increase their trading skills and knowledge. There should be trading accounts for beginners which allow them to start trading online with a suitable investment size and good trading conditions.
What to look for in the best brokers for beginners:
- Offer the best trading platforms for beginners
- Round the clock support
- Selection of educational resources
- Daily market analysis
- Different asset classes for trading online
- Additional trading tools
- Discounted broker fees
- Regulation from a top tier regulator
- Beginner account types
- Convenient account funding options
How much money do you need to trade online?
Most online brokers will require a minimum deposit to open a trading account with them and start trading online. This can vary from broker to broker but we believe the best brokers for beginners will have a suitable minimum deposit, which is usually between $100 – $500. Of course, you should only ever trade with what you feel comfortable with and never risk more than you can afford to lose. Nearly all brokers will offer free demo trading accounts which allow you to practice trading online with virtual funds. This can be a good way for beginner traders to try out the different trading platforms and test different trading strategies.
How do I start trading online?
If you would like to start trading online, you will need to first choose a trading broker that meets your needs and open a real or demo trading account with them. If you are new to online trading then you may wish to consider one of our best brokers for beginners listed on this page. Once you have opened a trading account with your broker of choice, you can then download their trading platforms and start trading online when you feel ready to do so. You may wish to read our guides on how to choose a trading broker and how to open a trading broker account for further information.