All your deposits and profits will be accumulated at your trading account. Consequently, losses and forex charges will reflect in your trading account.
After testing and practicing your trading strategy in the demo account, next, follow these steps to open forex account that meets your forex trading requirements.
What is a Forex Account?
While different accounts exist, a forex demo account is usually the first step in starting a forex account.
With the availability of high-speed internet connection, how to open a forex demo account and to download a forex demo application is now a quick and straightforward process.
The forex demo account, also called dummy forex trading account, allows you to trade with virtual money before trading with real money.
Once you have gained enough confidence, you can then proceed to open a real forex trading account.
First Step: Choose a Forex Broker
The initial step involves choosing your best forex broker. How? Consider 10 key factors while choosing an online forex broker to help you select your desirable broker.
After identifying your broker, download the broker’s forex demo application and execute some tests.
Second Step: Choose Forex Trading Account
Among the three types of accounts in forex trading, select the one that best serves your interests.
The common types of accounts to choose from include Mini accounts, standard account, and managed accounts.
While the standard account is widely used, the free demo and mini accounts are ideal for learning and testing trading platform features.
The managed account managed by money managers is suitable for traders who are busy or don’t want to trade themselves.
Once you have carefully chosen the type of forex account, the next step is to open the real account.
Open a forex trading account online directly on the official website of your preferred forex broker.
Opening the currency trading account online involves quick and straightforward steps as outlined below:
1. Forex Sign Up
First, go to the website of your preferred broker.
Next, scroll on the broker’s menu and click or tap on the forex sign up icon.
On tapping or clicking on the forex sign up icon, you will be directed to the account opening page.
While at the forex account opening page, you will be prompted to fill in all necessary details such as full names, email addresses, and phone numbers.
Carefully provide correct and valid information, especially the email address and phone number, as it will be used in the verification process and subsequent login into your account.
2. Confirmation Process
After filling in all the required information above, next click or tap on the confirm/submit button.
A prop “send the confirmation code or link via SMS or email address,” prompting you to select your method to receive confirmation will appear on your screen.
Select your preferred method and hit the okay button.
After hitting the okay button, check the method, SMS, or email, that you specified to receive the confirmation code or link.
If you receive a code, fill the code manually at “enter the code” field.
If you receive a confirmation link, follow the link on your email or phone to complete it.
Congratulations! You have completed the confirmation process.
3. Registration Process
Once you have completed the email/SMS confirmation process, you will be required to complete the account registration process.
Tap or click on the “register” button where you will be directed to the account registration page.
While at the registration page carefully fill in all required fields:
- Full names
- Identification or passport number
- Email address
- Phone number
- Date of birth
- Physical address
- Password
- Confirm password
After that, you will be asked to choose the type of account from the available options.
Next, you will then select a trading account terminal, forex currency, and account leverage size.
Tick on the “I agree” box to accept terms and conditions and consent to the processing of your data.
After filling all the required fields, you will be required to click or tap the “confirm” button.
Well done on the successful opening of your forex trading account!
Upon the successful opening of the account, you will receive your account information such as account number, password, and account user name.
For the safety of your forex account, keep your login, account details and passwords safe and secure away from third parties.
After this, you will then proceed to the next step of verification.
4. Verification Process
In line with the safety and security requirements of all currency trading accounts, you will be asked to verify your account details.
You will then upload copies of your identification documents, proof of residence, and a passport photo.
Proof of residency includes bills and bank statements.
Fourth Step: Deposit
To deposit funds, you must login to your currency trading account then click or tap on the fund’s deposit icon.
You will be directed to an account deposit page where various methods of deposits will be displayed along with deposit instructions.
Select the most convenient payment option for you.
After choosing the deposit option, press the “deposit funds” button, and funds will be transferred to your trading account through your preferred deposit option.
You will be required to open a forex bank account just in case you don’t have one.
The bank account will facilitate funds deposits and withdrawals from the forex trading account.
The account can be funded by credit card, wire transfer, cheques, and mobile money transfers.
Upon successful deposit of funds to your account, you can commence forex trading.
Please note that your deposits must emanate from your forex bank account as third party deposits are not accepted by forex brokers.
However, the above procedure might vary slightly between different forex brokers.
Conclusion
The open forex account process might derail without proper documentation during verification.
For quick and easy management of your account while saving on data and time, download the broker’s trading platform app.
Must Read: Top online forex trading platforms 2020
You are highly encouraged to demo trade for up to several months before engaging in forex trading with real money. Free demo is quite different from live trading.
Always be vigilant and use proper risk management in actual trading.