Yay! It’s that day. You are going to open your Forex trading account. It’s far from complicated but it does involve a series of steps. That’s okay. We are here to talk you through them so that you will know exactly what you are going to be experiencing as you get closer to becoming a Forex trader.
1 – The Account Type
Yup. There are different types of Forex trading accounts. However, this is essentially a no-brainer as you only have two choices. Either you will have a personal account or a business account. The business account is also known as a corporate account. Then you will need to decide which of the following sub accounts you will need. Your choices are standard, mini or micro. These relate to the size of the account. That is, how much money will be in it and the kind of trading you will use it for. Finally, you will have to be sure that the account you open is a Forex spot account. Do not open a forwards or futures account.
2 – Registration
This is the paperwork you should have already filled out and will be slightly different from one broker to another. Essentially it contains all of your identity information such as your name, address, phone numbers and all of that kind of info. The forms would have probably been offered to you in advance by your broker in a PDF file. Be prepared to cough up some ID to prove you are who you say you are. You won’t be able to trade Forex as an anonymous player so don’t even hint at that being part of your plan.
3 – Activation of the Account
This is a lot like opening a social media account online. Once the broker has processed all your information you will be sent an email where you would respond and complete the activation phase. Once you have done this another email will be fired your way and it will enable you to personalize your account after you access it with the user name and password contained in the email. Once you are able to log into your account you are on your way to placing your first trade.
4 – Ah, Just A Minute Here
You did have a demo account to start, right? The reason why we ask is that there is no better way to learn how to work in and around the Forex community without spending a dime is with a free demo account. It prepares you for the real world excitement of Forex trading without the risk. Plus, if you decide Forex is not for you and you still have a demo account, there’s no problem with getting out of it.
It’s just a precaution that can save you a headache down the road. Use a demo account first. Any broker worth dealing with after you go live with your account should have demo account access available for guys just like you. You’ll learn at your own pace and who wouldn’t want to start that way?