Opening a Forex account isn’t like solving complex algebraic equations. Select your broker, choose a trading account, pick a trading platform, and you are good to go.
But (there is always a but) there are certain things worth considering before opening a Forex account.
So, in this guide, we’ll walk you through every detail on how to open a Forex account.
Selecting a Broker
First things first, choose a broker to open an account with. Now, there are a lot of brokerage firms you can choose from. Each has its different set of regulations for account opening.
The most crucial factor you should look for in a broker is reliability. As Forex trading completed online, there are many scams, and some companies can rip you off.
But that doesn’t mean every broker is a fraud. The presence of authoritative licenses of regulatory organizations from FCA, CySec, ASIC, FINMA determines the reliability of a broker.
Do some research and find a reliable broker you can trust with your funds.
Forex Trading Account
Next, it’s time to choose a Forex trading account. Here are the types of Forex accounts you can choose from:
Demo and Live Trading Account
If you have never traded before, a Forex demo account will help you. The demo account open for free. Here you can learn the basics of trading, check out a new strategy, evaluate the work of a broker.
By opening a no deposit account on Forex, you risk nothing at all. You only need time and desire to figure out the details. After the first acquaintance with the market using a demo account, it makes sense to make a deposit and open a real forex trading account.
Forex MAM Accounts
Forex account management can be carried out by one trader representing the interests of several investors which is called MAM. After the conclusion of trader transactions, profits or losses from them will divide between trader and investors in proportion to the size of their deposits.
MAM is an abbreviation of the “percentage distribution control module.” Forex MAM accounts are a convenient way to participate in trading on the exchange, by merely providing management of your funds to an experienced trader, using his experienced trading strategies.
Islamic Forex Account
Their difference from ordinary trading accounts is the absence of crediting (debiting) the next day the amount for transferring an open trading position. Instead, a fixed fee is set, which charge once a week. All other trading conditions for Islamic accounts are the same as for ordinary ones.
Picking a Trading Platform
Before you begin your journey in the Forex and other financial markets, you must choose the primary tool: a trading platform.
Meta Trader 4 (MT4)
- Easy to learn the platform, for which a large number of training materials have released.
- Intuitive interface.
- The terminal is available on any device: it has a desktop, mobile, and web versions.
Meta Trader 5 (MT5)
- A promising platform, the interest in which is growing steadily.
- MT5 is a simplified system for testing trading strategies.
- Convenient and straightforward interface.
So now you know opening a Forex account isn’t that difficult. You have to consider a few points first.