Forex is an expression for foreign exchange and Forex trading is one of the most popular tradings among the traders. There are a lot of brokers who are ready to help all those people who tend to work in the realm of currencies and Forex broker is the most famous one. In this regard, opening a forex account is as important as opening a bank account.
However, many people don’t know where they must start and what the first step is. If you are one of them, go through this article which is completely explaining the steps to open a forex account from A to Z; therefore, you can be sure about the success of your trading with the help of the forex broker websites.
Table of Contents
Find the Right Broker
As it is mentioned above, there are several forex brokers which choosing one of them is the first step for opening an account. It may seem a little difficult to find the best of them; that’s why many people feel overwhelmed and sometimes they give up. However, if you want to achieve success in forex trading, you must be patient and follow some simple steps which are given in the following paragraphs.
In finding the best forex broker, you can ask for the help of those who you trust and they also have proved that they care about you. People like your family, friends, and some of your reliable colleagues are certainly going to introduce you to the best broker if they know one. Typically, these people do their best to help you and see your success. So, never underestimate the possibility of their capability in helping you.
The other way in finding the best broker is to search online and look at those websites which are introducing the best brokers with their professional backgrounds. Some of these websites also have provided sections to write reviews or leave a comment about the brokers’ services; therefore, you can go for them and read carefully all those effective reviews which are written by the other clients.
All in all, in finding the right broker, look for the affordability of the services which are offered and check their reputation. Check the amount of the commission which they ask for and calculate the amount of your profit to understand the amount that they ask for is fair. Then go for the other requirements that they may ask.
Required Information for Opening an Forex Account
Like many other organizations, opening an account in a forex broker system, some essential information is required. This need for information is because of the security of the traders and without it they are not comfortable in using the broker. The necessary types of information that you need to enter in opening a forex account are personal information such as your country of origin, name, contact info, and tax ID number.
Then, to avoid the risk of loss, the forex broker system is going to ask you about your financial situation. It is for estimating the possibility of failure and success. You are also going to be asked about your trading professional background and experience.
Types of Forex Trading Account
By a simple search, you are going to understand there are various types of forex accounts. Among them, three main types of forex trading accounts are retail, professional and institutional. At FXCM, clients know these types by the name of the standard account, Active Trader, and professional which each of them is briefly introduced below:
- The standard account is the most famous one among the forex traders; because by this type of account, they have access to the top currency pairs and CFD products.
- The active account is used by those traders who are working in higher volumes of trades. Some of the most beneficial features of this type of account are elite pricing, API trading, and enhanced support.
- Professional account is the type of account that is used by those professional traders who are looking for some specific criteria.
Procedure for Opening an Forex Account
Generally, opening a forex account is not a burden that bothers traders; but, it is better to know and review the procedure before doing anything. As it is mentioned earlier, you need to enter some information from your personal information to professional trading knowledge of yourself. After that you need to follow the instruction below:
- Check the broker website for available types of accounts. The website may introduce you to different types of accounts from beginner to professional.
- Complete the application form.
- After completing the application form, you must consider a username and password for your account to have access to it.
- Log in to the brokerage’s client portal.
- Now, it is time to arrange to transfer the inflation from your bank to your broker account. You can do it through a check, credit, or debit card. You are also to use electronic transfer from your bank account.
- After the fund transfer is done, you can start your forex trading. In this sense, you can use the recommendation and reviews that your broker has provided you. Your broker may be one of those types of account which suggest a demo account to allow traders to practice before starting their professional trading.
The Bottom Line
Forex broker trading has been known for being one of the most beneficial tradings for several years and nowadays, people are looking for them. There are a lot of forex brokers who are ready to help the traders and there are some forex websites to guarantee the success of the traders.
In order to use them, you need to open a forex account. In this regard, you must find the best forex broker and choose the best type of forex account which is the rightest one according to your condition. Then follow some essential procedures from entering your personal information to the last step which is starting forex trading.