There are three simple steps to open a new online trading account with a forex broker. First is to select an account type. Second is to register and third is to activate your account. But before opening a live account, try out several brokers. Request for demos, they are free. When you have decided on the right broker for you, then you are ready to open a live account.
You have the choice of opening a forex trading account under a name you like. It could be your own personal name or a business name that you have decided upon. You also need to decide what account to open, whether a “standard” account, a “mini” account, or a “micro” account. If you are an inexperienced trader, or if you have only a small account of capital to trade, it is advisable to open a “mini” account. A standard account is not only for experienced traders, but for those who have lots of money to invest.
If you want your broker to do the trading for you, then you can pick the managed account option in their application forms. But it is more beneficial for you to learn to trade the forex for yourself. Besides, a big minimum deposit of $ 25,000 or more, is required if you open a managed account. On top of this, the broker also takes a portion of the profits. So it is not advisable to pick the managed account. Make sure to open a Forex spot account. Do not make the mistakes of opening a “forwards” or “futures” account.
After selecting your account, registration follows. It will be necessary for you to submit paperwork to be able to open an account. The forms you need shall vary from broker to broker. These forms are usually available in PDF format and can be viewed and printed using Adobe Acrobat Reader program.
Upon receipt by broker of all the necessary paperwork for registration, you should receive an email giving instructions on how you can complete your account activation. After you have completed all these three steps, you will then receive a final email containing your username, password and instructions on how you will fund your account.
With all these accomplished, you can now log in and begin trading.
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