After selecting a good Forex broker the next step is to open an account. The process of opening an account with a Forex online broker is usually done in 3 simple steps:
- Selecting the type of account (brokers usually offer 3 types: Micro, Mini and Standard accounts)
- Account activation
Before starting to invest with the money that has cost you so much to earn, it is a good idea to consider opening a demo account first. In this way you can even open several demo accounts in different brokers (demo accounts are free) and thus test and evaluate different platforms before deciding which one best fits your needs.
Types of Trading Accounts
When you are ready to open a real account, you have the option to open an account in your name or on behalf of your company. You must also decide if you want to open a “standard” account or a “mini” or even “micro” account. Beginning traders or with trading accounts with a very small capital, should always start by opening a “mini” or “micro” account. Only experienced traders with more capital should open a standard account.
Some brokers even offer what are known as Cent accounts, which have minimum deposits from $1 and minimum transaction sizes from 0.0001 lots onwards.
Read the Contracts
Some brokers offer “managed accounts”, but in these cases you usually need a minimum capital starting at € 25,000 / initial deposit and the idea is to learn to do it yourself. In cases of managed accounts, the broker will also want a portion of the profits.
To register you must fill out a registration form with your personal data. Most regulated brokers will also ask you for some required documents such as proof of identity (copy of ID, passport or driver’s license), proof of residence address (bill for electricity, water or telephone services in your name that show your address) and sometimes also some document that proves that you are the owner of the payment option that you are going to use to deposit/withdraw funds. These documents are requested to comply with regulations of the regulatory bodies such as CySEC or FCA on customer safety and against money laundering.
Activation of the trading account
Once the broker has received all the required paperwork, you should receive an email with the instructions to complete the activation. Once these steps are completed, you will obtain a final email with the username, password and instructions to transfer initial funds to your account.
Then, it is only necessary to log in to the trading platform and start trading in Forex. Really simple right?
Wait a minute! Stop!
We strongly recommend that you take your time to learn to invest by following the items you have at your disposal for free in our Forex Course before you start risking your real money.
Because if you do not do it and start trading without the necessary knowledge, you will probably lose all the money in your account long before you think!