From Forex to Commodities: EBC Compares the Best Assets for Beginners

When stepping into the world of trading, it can feel overwhelming. Markets are diverse, and with so many asset types to choose from, how does a beginner decide which one to focus on? At EBC, we understand the importance of making well-informed decisions from the outset. To help new traders on their journey, we’ve compared some of the most popular asset types: Forex, commodities, and indices. Here’s an easy guide to the best assets to trade, how to approach them, and what to consider when making your choice. 

Forex: A Beginner's Gateway to the Global Market 

Forex, or foreign exchange, is the world’s largest and most liquid market. With a daily trading volume exceeding $7 trillion, it’s a favourite for both new and experienced traders. The appeal lies in its accessibility, liquidity, and relatively low costs. For beginners, currency pairs like EUR/USD, GBP/USD, and USD/JPY are often the best starting points. 

Why is Forex suitable for beginners? 

Liquidity: Major currency pairs are highly liquid, meaning trades are executed quickly, with low slippage and narrow spreads. 

Low Costs: Forex is known for its tight spreads, especially on popular pairs. Platforms like EBC offer zero spreads on certain pairs like EUR/USD, making it an excellent choice for new traders looking to minimise costs. 

Volatility: Major currency pairs tend to experience lower volatility compared to other markets, making them more predictable and easier for beginners to trade. 

However, traders must still keep an eye on market news, as central bank policies and geopolitical events can cause significant movements. A solid understanding of how to read economic indicators and interest rates is essential for success in this market. 

Commodities: Precious Metals and Energy Markets 

Commodities like gold, silver, oil, and agricultural products are popular among traders for their tangible nature and strong correlations to global economic trends. Gold is especially favoured by beginners due to its safe-haven status and predictable price trends. As the world’s leading non-yielding asset, gold benefits from geopolitical uncertainty, inflation concerns, and the performance of fiat currencies. 

Why should beginners consider commodities? 

Clear Trends: Commodities like gold have long-term trends that are easier for new traders to follow. Gold, in particular, has shown a steady rise over the years, making it a safer bet for long-term trades. 

Economic Indicators: Commodities respond strongly to global economic events, so understanding the broader economic picture can help make more informed trading decisions. 

Tangible Value: Commodities offer a more straightforward approach for beginners who may not yet fully grasp abstract financial instruments. 

At EBC, gold and silver are two of the most widely traded commodities, and with tight spreads and low commissions, beginners can trade them more effectively than on other platforms. 

Indices: The Broader Market Picture 

If Forex is about individual currencies and commodities, indices reflect the broader market sentiment. Indices like the S&P 500, FTSE 100, and DAX 30 track the performance of major companies within specific regions, making them an excellent choice for beginners who prefer less volatility compared to single stocks. 

Why are indices appealing for new traders? 

Diversification: Indices allow you to trade a basket of stocks, reducing the risks associated with individual stocks. For instance, the S&P 500 includes 500 companies, which spreads out risk and can be easier to analyse than individual equities. 

Market Sentiment: Indices reflect the overall economic and political climate of the regions they cover. For example, when the US economy is doing well, the S&P 500 tends to rise. 

Low Volatility: Compared to individual stocks, indices tend to experience less volatility, which makes them more predictable for beginners. 

At EBC, index trading is made even more accessible, with low spreads and competitive commissions allowing beginners to engage with the market effectively. 

Choosing the Right Asset: What’s Best for You? 

Ultimately, the best asset for a beginner depends on several factors, including risk tolerance, investment goals, and market interest. Here’s a quick summary of the best options for new traders: 

Forex: Excellent for beginners looking for liquidity, low costs, and broad market opportunities. Focus on major currency pairs like EUR/USD or GBP/USD. 

Commodities: A solid choice for those interested in tangible assets with long-term trends. Gold, in particular, is ideal for those looking for stable returns and protection against inflation. 

Indices: A great option for beginners who want broader market exposure without the volatility of individual stocks. The S&P 500 is a good entry point for new traders looking to follow the US economy. 

At EBC, new traders are equipped with the tools, resources, and low-cost trading opportunities to navigate these markets confidently. Whether you’re interested in Forex, commodities, or indices, EBC provides a seamless platform for executing trades and learning more about the markets. 

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.