How to Open a Forex Trading Account
After you learn about the advantages of the Forex market, you'll want to start trading right away. To understand the Forex trading platform you'll first need to learn how to open your online Forex trading account, wherein all of the currency transactions take place.
Opening an account consists of four basic steps:
- - First, select your account type.
- - Then, register and enter your deails on the website.
- - Next, you have to activate and confirm your account.
- - Finally, download the Forex trading platform and start trading with your account.
Selecting a Forex Trading Account Type
Forex trading sites offer different account types. Make sure you find the right trading site, and then the job of selecting the account type will be easy.
One of the differences between Forex Trading account types is the size of the account. There are Forex trading accounts as well as mini accounts that vary in size, and can range between $25 to $10,000. The account size will determine which lot investments are available to you. Create the account according to the funds you want to invest with, and make sure you do not risk to much of them right from the start.
You should also make sure you choose a Forex trading spot account, rather that a futures account. This is the most popular account type, as most online traders want their trades to be done instantaneously.
Forex Trading Account Registration
When you open a Forex trading account, you will be asked to give various personal details, including your credit card details, so you will be able to make real cash trades. Some sites offer Forex trading free training wherein you are not required to give out your credit details in order to open and use the demo account.
In most cases Forex trading registration is done online, even though sometimes you are required to register by fax. This is uncommon though and only occurs for the smaller Forex trading sites.
Forex Account Activation and Confirmation
Because we are dealing with real money accounts, you are required to verify your details and your email, through various needed steps. Before you sign the terms and conditions of the Forex trading account, make sure you understand what the site is offering. You should make sure you understand about the various conditions that include:
- - The Forex site's hours of operation and the availability of live support.
- - The bid/ask spread that the site offers for major currencies, in relation to what other sites offer.
- - Make sure that proper leverage is available through the margin per trade.
- - Find out about The minimum account size and lot size.
- - Check that there are no small print or hidden commissions that the site's operators prefer you don’t know about.
- - If you can, try out the Forex trading platform, as well as the charting and technical analysis options beforehand.
- - Check the general contract and make sure you save it along with the requoting policy on your computer.
Now you can open your Forex trading account with a clear mind and focus on investing properly.