Best Online Broker for Beginners 2022 Forex & CFD Trading For Beginners

Forex and CFDs are both popular instruments that allow investors to capitalize on their funds, though both Forex and CFDs have varying pros and cons. However, please remember that there are no CFD brokers for beginners since CFDs are complex instruments. Still, some features could help you learn more about trading, like our CAPEX Academy.

Continue reading to learn more about Forex & CFD trading along with why CAPEX is one of the best online brokers.

Highly intuitive trading platform

Whether you’re a beginner or an expert trader, it’s important to know how to choose an online broker for your requirements. The trading platform you choose to use has a massive effect on your overall trading experience. If a platform is hard to understand and feels like a puzzle you need to solve, most of your precious time will be wasted trying to find essential functions and make investments.

Here at CAPEX, we offer our traders two excellent trading platforms, both designed in a user-friendly manner and highly intuitive. All functions are laid out neatly, and the platform has several integrated tools and features to support traders.

Excellent customer support

Having available customer support is an essential part of one’s trading experience. As a trader you’re bound to have queries when you begin trading on any platform.

Here at CAPEX, we offer customer support in multiple languages, seven days a week. Our support team can be reached through phone, live chat, and email. You can also visit our FAQs page, where we’ve answered several questions that are likely to arise, elaborately.

What is the difference between CFD trading & Forex trading? – A quick overview

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.

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Pros and Cons of CFD trading

Pros

Greater exposure due to leverage.
CFDs are available on thousands of markets.
Smaller deposits required.

Cons

CFDs are risky in nature due to leverage.
With CFDs, you don’t own the underlying assets.
CFDs are not the best instruments for beginners due to risk and complexity.

Pros and cons of trading Forex

Pros

Easy to trade/ ease of entry
Low capital requirements
Suits a variety of trade styles

Cons

There aren’t too many tradable pairs, so limited options
Depending on the currency pair, Forex is also risky due to unpredicted price changes.
Requires knowledge of the factors that could affect the two different currencies.

How to trade CFD on stocks and Forex as a beginner with one of the best CFD online brokers

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.

A few strategies to apply while trading Forex CFDs with CAPEX

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.

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