Remember growing up as a kid and at about the time your allowance just wasn’t enough you were encouraged to get a part-time job? We remember those days so well. In fact, at one point we were also encouraged to open a bank account so we could have a safe place to keep the income we were making from cutting lawns, babysitting and delivering newspapers. Well, there is going to be a landmark moment in your Forex career when you will have to open an account in order to conduct much in the way of trading activity. We’re going to make it painfully easy on you by describing the process in just three steps.
Account Type Selection
Much like opening your first bank account with your babysitting money, you will have a choice of the type of account to open. In Forex your choices will be either a personal account or a corporate account. Depending on your broker, you may have the option of opening a standard, mini or micro account which is based entirely on the minimal lot size you can open the account with.
Well, if you thought you could get away with being another anonymous trader in the Forex world, guess again. Secret identities are not allowed as you will be required to provide proof of identity documentation in order to register your account. Again, each broker has a slightly different requirement on what they consider proof of identity but expect it to be a lot more personal than a buddy down the street saying he thinks he knows who you are. That being said, picture ID may not be the benchmark in some circumstances. Using your secret powers at this point will not help matters any.
Activation of the Account
When you get to this point, it’s pretty much smooth sailing from here. The only snag is that it’s now up to the broker to take care of activation. Although it may be tempting to do a little bit of bribing, it’s uncalled for as the broker should only take a few days to get this hurdle pushed aside. Once you get your confirmation email with account information, passwords and such, you will be ready for your first live trade. Well, that’s after you’ve put some funding into the account.
It will feel pretty good to have a live account up and running so you can jump into Forex trading but before you do, you should spend some time exercising. Yup, you read that correctly. You can work out simply by trading on a demo account. By doing this for a number of weeks and months you will learn the ins and outs of the platform you will be using and the steps required in order to complete trades. Ask your broker for direction along the way as this is the time to work out the bugs before you start live trading.