Best Online Broker for Beginners 2024 Forex & CFD Trading For Beginners

First of all, it’s essential to understand that there is no such thing as ‘the better choice’ when it comes to Forex and CFDs. Both are great ways to potentially capitalize on your funds and come with their own set of pros and cons. While some traders might prefer trading Forex, others might prefer CFDs, and some may even prefer both.

Forex is short for foreign exchange, and investors invest in Forex pairs or currency pairs in order to profit from the shifting values of different currencies. Meanwhile, CFD (contract for differences) is a contract between a buyer and a seller where the buyer bets on an asset’s price change.

Variety of instruments

The main difference between CFDs and Forex trading is that while Forex is limited to currencies only, CFDs can be traded on a wide range of markets, the Forex market being one of them. Currency pairs offer a significant number of trading options, but eight major currencies make up most of the Forex market. On the other hand, people who’re interested in diversifying their trades can access thousands of underlying assets through CFDs.

The Forex market is the less complicated choice between the two and is easier to trade. So, It really comes down to what you’re looking for and what your priorities are; more tradable options or a simpler trading process.

Size of contracts

The lot size on Forex is usually uniform, regardless of which currency pair you choose to trade. The standard Forex lot is 100’000 units of currency, whereas some brokers offer smaller accounts which are only a portion of the lot. CFDs also offer a wide range of contract sizes, depending on the asset you’re trading CFDs on. The standard contract for different assets varies when you’re trading CFDs.

Market influences

Forex is considered risky because there are a number of external factors that can influence the price of a currency. These factors include political factors, environmental factors, and sometimes the motives of financial institutions. Meanwhile, the factors that affect CFDs are dependent on the underlying asset you trade a CFD on. For instance, if you trade CFDs on commodities, the affecting factors would include events that are beyond human control such as an epidemic.

Here at CAPEX, we allow traders to trade Forex CFDs on one of the best CFD trading brokers for beginners. Plus, we offer users several tools and features to help you make informed decisions on your trading. You can also try out our CFD demo trading account to experience trading with virtual money.

Keeping in mind the price changes of CFDs and Forex, it’s no secret that they’re both risky instruments to trade. However, there are a number of factors that you can consider to improve your online trading:

Do your homework

Research is an important aspect of trading CFD stocks and Forex. Knowing the market you’re trading in will enable you to make more informed decisions. In fact, we recommend traders to invest in markets that they’re familiar with.

The more you know, the more informed decisions you will make. So, if you’re a beginner looking forward to kick-starting your trading career, a good option would be that you register with us at CAPEX and learn trading through CAPEX Academy. CAPEX Academy is a learning tool that we offer, where you can learn to trade all sorts of assets through elaborative videos.

Practice makes perfect

Trading any financial instrument means risking your funds, which is why it’s important that you’re prepared enough to reduce the risks of loss in trades. Once you’ve learned about the market you want to trade in, you should sign up on our CFD on Forex demo account and practice trading, apply strategies, trade various instruments, and make use of our learning tools and features.

Once you’re certain that you’ve gotten a hold of how CFDs or Forex pairs are traded, you can register for an actual account and begin your trading journey.

Follow experts in the market

Expert traders are extremely knowledgeable about the markets that they trade in & have several trading strategies up their sleeves. Here at CAPEX, we allow traders to access expert trade analysis and follow an expert trader’s moves.

Not only is this a great way to lower risks in trades, but it’s also effective as a learning tool. When you follow expert traders, you learn their strategies and trading techniques; you can then continue applying these strategies throughout your trading journey.

Start with small investments

Being a newbie in the trading market can be overwhelming. Taking one step at a time helps in controlling risk and avoiding large or sudden losses. As you continue to learn, you have better chances and improve your trading and investments.

Trading with CAPEX.com

The great thing about CFD trading online is that you can do it anywhere there is a secure internet connection. Inevitably, this means that mobile trading has proven particularly popular as traders can conveniently open and close positions from their mobile or tablet as and when it suits them.

Discover the functionality to ...

Trade more than 5000 CFDs

Manage your investment horizon

Set take-profit or stop-loss limits

Open short and long positions

No fees for opening and closing positions

Trade with and without leverage (StoX)

Start Trading Now

There is a wide range of strategies for Forex and CFD trading that can help one reduce risk while trading. Applying strategies can be a great way to improve your trading without having to stress about opening and closing positions too much. Here are a few strategies that you can bring to action while trading CFDs or Forex with CAPEX.

1% strategy

The one percent strategy is a day trading strategy based on the concept that you should diversify your trades, and none of your open positions should be more than 1% of your capital worth. Since Forex and CFDs are both popular instruments for day trading, this strategy can be an effective way to control risk.

News trading strategy

The following strategy involves trading based on news, Forex signals, and market expectations. To apply this strategy, you must be clear regarding the factors that affect the market you’re trading. Then you can simply follow ongoing trends in the market and make relevant trades where necessary. At CAPEX, we offer an expert blog where our users can access ongoing trends and the latest updates regarding trading markets. It could help you determine when to trade which asset.

Trend trading strategy

The following strategy is based on the idea that an asset will continue to go in the same direction as it is currently, and you should trade accordingly. It’s a very effective strategy.

There are a number of factors that either make or break a trading platform. Here are the main qualities one of the best online CFD & Forex broker should have:

A user-friendly trading platform

A trading platform that is easy on the eyes and offers users a smooth trading experience makes a lot of difference in one’s overall trading journey. Thankfully CAPEX offers its users an excellent trading platform that has a user-friendly interface that is highly intuitive and contains several integrated tools to support traders throughout their trading journey. From the moment you land on our trading platform, you’ll notice how everything is aligned neatly and in an understandable manner.

Excellent customer support

For someone who’s just entering the trading world, it’s completely normal to have queries and questions. So, any platform that prioritizes its users trading experience will offer direct customer support. Here at CAPEX, we offer our traders customer support through phone, email, and live chat. Our multilingual customer support service is available , seven five days a week. Plus, we also have a FAQs page where we’ve answered the common queries that arise in an elaborate manner.

A wide range of tradable assets

It’s always great to have a range of assets to choose from when you’re beginning your trading journey. Having access to a wide variety of markets is valuable for traders who want to have a diversified portfolio with exposure to several markets. This can easily be done with CAPEX as we offer CFDs on a wide range of instruments, including stocks, indices, ETF’s, cryptocurrencies, & Forex. You can also check out the extensive range of currency pairs we offer.

Learning tools

The key to becoming successful in any career is ongoing learning, and that’s the case with trading as well. The more knowledgeable you are, the better trading decisions you can take. Here at CAPEX, we want our traders to learn in the easiest and most convenient way possible. You can access a wide range of learning tools through our trading platforms, including our trading dictionary, the CAPEX Academy, IPOs, expert blogs, and featured articles/guides.

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