October 16, 2017
Now that you’ve learned how to choose a reliable broker, it’s time to open your first trading account! Brokers usually try to make this as easy as possible, so opening a trading account can be made in three easy steps:
- Choosing an account type
- Activating your account
Choosing the Account Type
The first step in opening your trading account is to select the account type you want. There will usually be two options: opening a personal account and opening a corporate account.
Brokers have also offered “standard,” “mini” and “micro” accounts in the past, with the difference in the minimal lot size that you can open with the account. Nowadays, many brokers allow you to open custom lot sizes so this isn’t a big deal anymore.
Trading with custom lot sizes is very popular as you can easily manage your risk per trade, especially if you are new to the market or an inexperienced trader.
The account registration involves submitting some documents to confirm your identity. This will usually vary from to broker, but with stricter regulations of retail forex trading there is no way around this. Sending a document that confirms your identity and address (like an electricity bill for example) will usually be enough.
After you have completed the steps above, it’s time to wait for the broker to do his part of work. In a few days, you should receive an email that confirms your account is activated, your username and password to log on to the broker’s system, and several ways to fund your account.
After you fund your account, you’re ready for your first live trade!
But, before opening a live trade, you should make sure that you’ve traded on demo account for at least a few months to get a feel for how the market is moving. Being profitable on a demo account doesn’t mean you will be profitable on a live account! Trading on a live account with real money involves different emotions that you need to control to become successful in the long run.
Even when you open a live account, always have proper risk management and never deposit more than you’re ready to lose!