After a suitable and reliable broker has been found, the future trader needs:
- select account type;
- activate account.
Before starting trading for real money, one should open a demo account. Only after having productive workouts, the user can choose the type of Forex account.
When you are ready to open a real account, you will have to choose between two types of accounts: personal and corporate. In the past, you would also have to choose between "standard", "mini" and "micro" accounts. Now there is no special need for this, as most brokers allow you to trade in non-standard lots. This is especially convenient for beginners and inexperienced traders, whose capital is still small - you can be flexible and you will not have to trade larger lots than you would like. Pay attention to reading the fine print.
Some brokers also offer a "managed account" - in this case the broker will trade for you. The minimum deposit for such an account is $ 25,000 or more, and the manager will receive his share from any earnings. Be sure to open a Forex account, not a forward or futures account.
Selection of suitable type of Forex account
- Standard (standart, classic) is the most frequent type of account. The minimum lot is 0.01, Stop Loss and Take Profit are set both during the opening of the transaction and after it. As a rule, on such accounts a fixed spread level, which facilitates the calculation of price targets. There may be delays in performance in the active market. Suitable for trading on daily charts and non-aggressive trading within a day (Timeframe at least hourly charts). Also can be used when working with trend Forex advisers;
- ECN accounts. Suitable primarily for trading intraday with frequent inputs and short transactions. The distinctive features of this account are lower than on the standard, but not a fixed spread and the availability of commissions for the transaction. For some reason, many are afraid of these commissions, although, given the lower spread, the trader's costs for the deal are approximately the same. It is also worth noting that the ECN accounts are better performing than the classic, but there is slippage in the active market, as well as spread expansion. This is worth paying attention to. Additionally, one cannot set take profit and stop loss simultaneously with the opening of the transaction, only after the order is executed;
- Some brokers recently launched ECN New accounts - the same ECN, but without commissions and with an increased spread. Sense I do not see in them, tk. One of the main advantages of ECN is the low spread. So, it's worth working with the "usual" ECN;
- Swap-free accounts - accounts upon which there is no swap (roughly speaking, the commission for the transfer of the position the next day). Swaps are so small and insignificant that a zero-sum score will be a good choice only if you or your advisor hold positions open for many weeks. This type of account is distinguished by an additional commission for opening transactions, compensating the broker for the absence of swaps;
- Cent account - used most often to work with experts on martingale, as well as to test Forex strategies in practice. For more information on cent accounts, see this article;
- Demo account. Virtual money, but everything is as true: the same graphics, the same prices. You can even open two terminals at the same time: one with a real one and the other with a demo account and compare prices - everything will be the same. Demo account is needed first of all for Forex beginners in order to understand how to trade within the Forex market.
Forex account: check in
You will need to fill out and sign certain papers to open an account. Different brokers have different requirements. Usually all necessary forms are provided in pdf format, they can be read and printed using Adobe Acrobat Reader. Make sure that you are aware of all additional costs, for example, you know how much your bank takes for an electronic transfer. If you do not know, prices can surprise you unpleasantly - a lot of your trading capital can go to such trifles.
When the broker receives all the necessary paper, you will receive a letter with instructions on how to activate the account. When you execute them, you will receive another letter containing your login, password and instructions for depositing money into your account.