Beginner’s Guide to Online Forex Trading – Chapter 13: How to Open a Forex Trading Account
You can open your own Forex Trading Account with an online Forex Broker in 3 easy steps:
Choose your account types.
Register your account.
Activate your account.
Trading online in Forex transactions can be risky if you do not know how things work. So before you take a chance with real money, it is a good idea to try out with a dummy account or a demo account. Most online Forex brokers give you the option of creating a FREE demo account. We suggest you to open 2 or 3 demo accounts for getting a feel of the process. We also encourage you to check out and compare different online brokers before choosing one.
1. Choose your account types: There are several choices you will need to make.
a. You can open the account as an Individual account or as a Business account.
b. Select either a standard account or a mini account. If you are a beginner with fewer funds for trading, go for a mini account. Some brokers also offer a micro account if you wish to trade in even less capital. A standard account is usually opened by seasoned traders dealing in large amounts of money. Read the terms carefully to decide on this.
c. If you want your broker to trade on your behalf, select the managed account option, if available. However, this requires a high sum of money ($20,000 or more) to set up and you will also have to pay a profit commission to the broker. But since you have decided to trade yourself, the managed account option is not for you.
d. Select a spot account, NOT a futures or forwards account.
2. Register your account: To register, you will need to fill up some forms which are provided on the website, usually in Adobe PDF format. Download the forms, print them, fill up the information and submit them to the broker. Different brokers might have a different set of forms.
3. Activate your account: The broker will evaluate your application and send you instructions via email on how to activate your account. Once you do that, the login information including user id and password will be sent to you.
You are now ready to add funds to your account and start trading. But before that, you must go through this manual and start applying all that you learn.