Once you have decided that you are ready to trade in the live forex market and you have chosen the tailor-made broker for you, there are three simple steps that you can follow in opening a trading account. The first is selecting the account type. The next is registering and activating the account.
Opening a forex trading account is pretty simple, but we hope that before you decide to trade and bet real money, you practiced with multiple demo accounts first. First-timers should initially start practicing with demo accounts to avoid losing money. Why not? Demo accounts are free of charge! Demo accounts will also let you know the suited forex broker for you.
After kicking the tires and confidently saying that you are ready to bet your money, we have elaborated more on the three steps in opening a forex trading account for you.
Step one: choosing an account type
When you want to open a forex trading account, you will have to choose if it will be a personal or a business/ corporate account. Forex trading has become more convenient today because a trader can customize how they want to trade according to their budget. Before, accounts are further subdivided into standard, mini, or micro-accounts. Today, first-timers and beginning traders can benefit from this trading feature since they can still trade even when they want to start with short positions first before betting on a more significant amount of money.
Some trading platforms will ask you if you want your account to be a “managed account.” If you choose this option upon opening your account, then the broker will be the one to trade for you. However, you must know that you have to pay a hefty deposit of $25 000 as a minimum or higher for some if you choose this option. There is a massive possibility that brokers or managers will take some of your profits. In short, you do not control the trading in your account since you put someone else in charge!
Here is a little reminder before we jump to the next step! Make sure to double-check that you are opening a spot forex trading account and not a forwards or futures account!
Step two: register your account.
Opening a forex trading account requires quite a little paperwork. The paperwork that comes in as PDF is not the same for all brokers. Ensure all the details, especially the costs and fees like bank charges when transferring money. Some of these costs are surprisingly considerable amounts. Be sure to ask these so that you will not compromise your trading capital money.
Last step: activating your account!
After all the paperwork and requirements, an email will instruct you on how to activate your account. Later on, another email will state your username, passwords, and account funding instructions. That is it! You can now start to trade after all these steps.
A friendly reminder
We hope that we did not fail to remind you to start trading with demo accounts first before going live. It is not a waste of time. It is also an investment to practice and hone your skills!