Now that you have spent time demo-trading on a minimum of three brokers, you have finally narrowed down your selection to just one forex broker?
Once you have satisfied yourself in finding the perfect broker for you, the next thing is to open a forex trading account, and you can do this in three simple steps:
- Choosing the type of account
- Registration of the account
- Activation of the account
Now, we will never get tired in repeating this, and here is it again. Before you start trading off your money, make sure you setup two or three demo accounts.
Why not do that? It is absolutely FREE of charge! Use them to try the “guts and gutters” of several brokers to get a better understanding and know the right one for you.
Now, let’s proceed.
Choosing The Type Of Account
There are two types of forex trading accounts: a personal account and a business/corporate account. You will have to select one of the two types of accounts when you are ready to open a live account.
In those days, when someone wants to open a forex trading account, that person would be required to select whether he/she wants a “mini account” or “macro account” or “standard account.”
But today, that is no longer a problem since the majority of the brokers affords you the opportunity to trade custom lots.
This new trend is great for beginners and traders that are yet to have experience and who only operate a small capital account.
By this, you have significant flexibility, since you would not be required to trade larger than what is comfortable for you.
Also, remember always, and always remember.
Some brokers in the market offer a “manage account” option inside the application forms they give to you. This option allows the broker to trade your account on your behalf. If that is okay with you, then select it.
Ask yourself; “is this what I really want? You haven’t come this far just to have someone else assume control and trade for you!
Besides, when you open a Manage Account option, you will be obligated to pay down a pretty big minimum amount of deposit. This could be from $25,000 and above. Furthermore, the manager will also be entitled to a cut out of any profit you make.
Lastly, be sure that you open a forex spot account, and not a futures or forward account.
Registering the Account
There is much paperwork you will need to submit to open your forex trading account, and the forms you will need to fill and submit varies from broker to broker.
Majority of the forms are usually online, and quite straight forward. Once they approve your documents – you’re ready to start.
Furthermore, be sure to know and understand all the cost associated with the account opening and registration, such as how much do your bank charge for a quick bank transfer. Some of the charges might surprise you greatly and may end up taking a significant proportion of your trading capital.
Activating the Account
After submitting the necessary paperwork and the broker have confirmed reception of same, an e-mail will be sent to your mailbox, with instructions on how to complete your account verification and activation.
After completing these steps, you will receive a final e-mail containing your username and password, plus well-detailed instructions on how you can fund your account.
From that point onward, the only thing you have to do is to log in and start trading. Bingo!
Isn’t that simple?
Now, it’s time to grab your PC, pop-open those charts and hit the trade waves like there is no tomorrow.
But wait a minute!
We are pleading and recommend that you DEMO trade first. Don’t be shy or feel ashamed—we all have to start somewhere.
If you have been demo trading for, at least, the past six months, then you may go ahead with debuting in live trading. Notwithstanding, we still suggest that you think it through and consider how much you are willing to risk.
Live trading is not like demo trading. It is a different ball game altogether.
If you venture into live trading without any prior experience in demo trading, it will not go down well.
Nevertheless, no matter the level of success you recorded while demo trading; nothing can overshadow the feeling of having real cash on the line.
And from the moment you start trading on a live account, don’t be too comfortable. Be alert ALWAYS and deploy a battalion of proper risk management.
Otherwise, be ready for the video possibility below.
Take a rest and come back for our next lesson: “The 3 kinds of forex market analysis.”
See you friend!
