There are a number of brokers in the UK, and choosing the best broker for beginners is crucial before you begin with trading. These brokers offer user friendly services, which potentially suit the beginner. These are typically web-based brokers which aim to provide an intuitive trading experience to customers. They do this by simplifying the layout, perhaps using larger fonts and extra space between elements.
However there are plenty of online brokers which do not provide these kinds of web services, but offer MT4 and MT5. These can be useful to experienced traders as they support automated trading, which is an advanced trading method. However they can be used for discretionary trading, where traders use chart, tools and information to make their own trading decisions and thus can be used by beginners.
Combining social trading and intuitive trading
The beginner can potentially benefit from the information provided with the broker. This can include technical indicators and graphical objects (i.e. chart based tools), but some brokers may include information about or from the activity of other traders. This can include social trading, where other traders share their views about trading, which help in learning from the choices of other traders. Thus combining social trading and an intuitive trading can be helpful for a beginner.
However even the beginner may wish to make their own chart based trading decisions from the start and get to grips with analysis, both technical and fundamental. This means traders can build their knowledge from the ground up and use information from other traders, and not rely on data as it may be difficult for them to interpret data as beginner. Thus a clear simplified option without social trading can be useful as well.
Another option is to use an advanced system from the very beginning, as all these can be used for basic trading, and get to grips with the system. You may try out advanced strategies as you become more experienced in trading.
Brokers which offer MT4 and MT5 typically provide accounts which are better suited to beginners, for example Micro accounts, which allow small trade sizes and accounts which do not have a commission charge added (like a ‘Standard’ account).
Some brokers enable a feature of MT4 and MT5 which allows the account to be denominated in cents. This allows for trading with very small account sizes. If the beginner wishes to try out the live market then this can be a way to approach its complexity, though even a small trade size still risks money (versus using a demo account).
Best broker for beginners offer trading automation
Automation can include copy trading, where other’s trades are copied into the beginner’s account. This means the beginner can start with any of the options provided and trade using a chart and any information provided by the broker and help build a foundation of knowledge which can make using more advanced techniques feasible.
Some systems may take a little longer to get to grips with, but that is precisely what a practice account is for, both to practice trading and become familiar with the system. This is because the trader does not need the additional problem of not being sure about a trading system when trading live.
To try and answer the question of what is the best trading option for beginners, a pick needs to be made of a broker that has a user friendly web-based system and one which provides a terminal with wider scope.
What to consider when choosing an online broker?
When choosing an online stock broker you may consider your immediate needs as an investor. You may consider whether you are a beginner, you need a broker that has great educational material about the stock market or if you only have a small amount of money you can put aside to invest.
Some online brokers allow for small minimum deposits which can be a great option for those with limited funds. Robust mobile services could be useful for you if you are always on the go. Some online brokers have incredible mobile apps delivering nearly all the features that their desktop counterparts do.
Another important thing to consider is the distinction between investing and trading. When people talk about investing they generally mean the purchasing of assets to be held for a long period of time. These types of investments are usually made to reach a retirement goal or to put money into assets that may grow faster than it would in a standard savings account accruing interest. Trading, on the other hand, most commonly involves the buying and selling of assets in short periods. Trading is generally considered riskier than investing.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.