Best Forex Trading Platform for Beginners 2021: Full Review Guide
Are you a beginner trader looking for the best forex trading platform to help you get started? In today’s world, forex trading has become very popular among many people as it offers an opportunity to trade a wide range of currency pairs and make a significant profit. However, getting started as a beginner is not easy. You may have several concerns such as which platform to choose, their reliability, fees, rewards, and other key aspects of trading. Fortunately, in this article, we have put together a comprehensive review of the best forex trading platform for beginners to help you make the right decision.
Best Forex Trading Platform for Beginners - Overview
Before we get into the review, let's first understand what forex trading is and why you need a trading platform to execute your trades.
What is Forex Trading?
Forex trading is the exchange of one currency for another at an agreed-upon price. It is the largest global financial market with an average daily turnover of around $6.6 trillion. Forex trading is done through a network of financial institutions that include banks, brokers, and other market players. Forex trading involves buying and selling currencies with the aim of making a profit from the fluctuations in exchange rates.
Why You Need a Forex Trading Platform
Forex trading platforms are software-based systems that allow traders to analyze market trends and execute trades. Good platforms provide excellent tools and features that enable traders to make informed trading decisions. Platforms also offer trading education for beginners to have a good understanding of the forex market.
Best Forex Trading Platforms for Beginners
We've done our research and come up with a list of the best forex trading platforms that offer a competitive, user-friendly experience for beginners.
1. MetaTrader 4 (MT4)
MetaTrader 4 has been around for over a decade and has been widely used by traders around the world. It is one of the most popular forex trading platforms for beginners as it offers a user-friendly interface and is easy to navigate.
- MetaTrader 4 offers a wide range of customizable indicators, which are useful for technical analysis.
- It offers several charting tools and features that help traders to make quick decisions.
- MT4 offers automated trading capabilities, which can be useful for traders.
- MetaTrader 4 is only available for Windows users, making it unavailable for Mac users.
- It doesn’t support the newer hedging regulations, which requires traders to enter one trade at a time.
2. MetaTrader 5 (MT5)
MetaTrader 5 is an updated version of MetaTrader 4 and offers traders a more advanced trading experience. It is one of the best forex trading platforms for beginners as it is easy to use with its improved interface and functionality.
- The platform offers multiple time frames and charting tools that can be customized.
- MT5 provides traders with access to over 80+ technical indicators
- It offers a Market Depth tool which provides an insight on liquidity of the market.
- It is adaptable for Mac and Windows users.
- MT5 trading platform is not supported for all brokers (due to licensing costs).
- It has a higher degree of complexity and provides an overwhelming amount of data for new traders.
eToro is an Israeli fintech company that offers a user-friendly, social trading platform that enables traders to link up, compare performance, and copy trades from the most successful investors. It is one of the best forex trading platforms for beginners as it offers a wide range of educational and analysis material, and has a simple and user-friendly design.
- eToro offers a virtual trading program, where beginners can test their trading skills before investing real money.
- The platform offers a wide range of investment opportunities, from forex to stocks.
- Its social trading feature is beneficial for new traders, where you can copy trades from successful investors.
- The spread for forex trading on eToro is relatively high.
- eToro has a higher-than-average withdrawal fee of $5.
Plus500 is a user-friendly and minimalistic trading platform that offers an intuitive interface for beginners. Plus500 is a great platform for beginners since it offers a simple sign-up process and a wide range of trading instruments.
- Plus500 offers a demo account that allows traders to test the platform with virtual capital.
- Users can trade CFDs on thousands of instruments with low commissions and no hidden fees.
- A simple design makes it easy to navigate and use.
- It offers a limited selection of technical indicators.
- The platform does not allow hedging.
Tradingview is a cloud-based forex trading platform that offers advanced charting tools. It's one of the best forex trading platforms for beginners as it is easy to use. Tradingview is an excellent platform for analyzing charts and provides users with real-time data.
- Tradingview provides a customizable charting package to analyze markets in real-time.
- Traders can access other traders' insights and analysis.
- The platform also provides mobile trading capabilities.
- The subscription plans can be expensive.
Choosing the right forex trading platform is crucial for any beginner trader, and selecting can be a daunting task. It is important to select a platform that is reliable, offers excellent tools and features, is user-friendly, and has a good educational program. From our research, we conclude that MetaTrader 4 (MT4) and eToro are great options for beginners due to their user-friendly design and education. MetaTrader 5 (MT5), Plus500, and Tradingview are also great alternatives depending on what a trader is looking for.
We hope this review has provided you with valuable insights on choosing the best forex trading platform for beginners. Good luck with your trading journey!