How to Open a Forex Trading Account
In order to start trading on the Forex market you first have to open a trading account with a currency broker. You will want to choose an account type depending on the type trading you will be doing, and how much you’re willing to commit to Forex trading. Register for the account using all of your personal information. Try not to leave any of this information out, since it can become very important that it is filled out fully and completely while trading. You will then want to activate the account you just registered, through your email.
There are a number of demo accounts that you can try out for free. This provides you with a free platform to practice and surf through, before spending any money on the actual Forex database. You can create several dummy accounts if you choose to.
Choosing the Right Type of Account
For live accounts, you want to ensure that you choose the right trading account that you want. The options can include business and personal accounts. In past Forex accounts, there were options to choose from a standard, micro, or mini account. This has since changed, and you no longer get this option since many of the brokers on the database allow you to trade custom lots at any given time.
Having a smaller database, and choosing which size account you would like, provided the inexperienced traders with small amounts of capital to have more flexibility, and allowed them not to go out of their comfort boundaries while trading. When you sign up for an account, always remember to read any and all fine print on the page.
There is a ‘managed account’ option that brokers can choose from while signing up. This is where you would check if you would like a broker to trade on your account and on your behalf. Choosing this option also means that you are required to have a large minimum deposit, this can range from $25,000 or higher. Whatever profits you do make from the broker, the manager will get a share of these profits as well.
The option you will want when opening an account is a Forex Spot account, and not a futures or forwards account. These accounts have different options while trading, that are more experienced.
Registering for Your Forex Account
Paperwork is needed in the registration process in order to open and fulfill your account. These forms that you have to fill out vary from broker to broker depending on your background. The website will supply the forms to the broker in PDF format, and can be opened and printed through Adobe Acrobat Reader.
Ensure that you keep in mind all charges that are associated with opening an account. Your bank may charge extra for a bank wire transfer to your trading account. Depending on the bank you go through, it might be a costly amount and may take up a large portion of your trading capital.
Activating Your Account
Ensure that you hand in your paperwork completely filled out to avoid disruption of using your trading account. You will then receive a confirmation email stating the instructions of completing your online account activation. Complete all of the steps to receive your final email. This email will contain your username, password, and further instructions on how to use your account. This includes funding the account and trading through their database.
Completing Your Account
Once the above steps are finished, you can then log in and start trading through their database.