You have acquired interest in forex trading, have done the necessary reading and training and now you feel you are ready to get some skin into the game. To do this, you will need to identify a trusted and reputable forex broker that falls under legal regulation where you are from. This ensures that you do not put your money in the increasing number of forex scam.
Rakuten forex is one of the most reputable forex brokers the world over. It has a solid financial footing and has a slew of customers from all around the world.
To start forex trading, you need a fx trading account to ensure that you can easily access the online forex market, view the market conditions, place a trade of your choice, make profits and withdraw the profits into your pocket.
Factors to consider before opening a forex trading account
Broker fees and commissions
Unlike trading in securities and other financial assets, forex brokers will not charge fees or commissions directly. This is because, as the entity that allows you access to the forex market they are the market markers. Rather than charge a direct fee or commission, forex brokers gain from spreads.
In forex trading, the difference between the ask price and the bid price is known as a spread. This spread is how brokers make their money from every trade conducted through them.
You should therefore ensure that the spreads offered by your broker are not reasonable so as to make a reasonable profit on after your trades.
Leverage in financial terms usually refers to a loan. In forex, the term leverage refers to a loan that brokers of traders using their accounts to control a larger portion of their market than their actual cash allows.
Usually, brokers offer leverage from 50 times your initial cash up to 250 times. Leverages helps you optimize tour trading sessions and make superior profits than you would have made with your initial capital. On the other hand, when the market is against you a large leverage position can clear out your account although most forex brokers have strategies to mitigate against that occurrence.
Your choice forex broker
Before you open a trading account with a forex broker, ensure that they are well known with a good reputation and a strong financial background. Also make sure that they fall under the financial regulators in region to guard and protect your money.
Steps to follow to open a forex trading account
Select a reputable and regulated forex broker
Ensure that your forex broker is a reliable and well known broker in the forex circles.
Select the type of account you prefer to trade with
After you have selected your broker, you can now choose the type of account you want to use to trade. Different forex brokers offer different types of FX trading accounts. There are two main types of accounts. The first is a personal account which will be registered under your name while the second is a corporate account which is an account option for companies that want to trade in the forex market.
Some brokers also have different accounts depending on the amount of starting capital you have to trade with.
Registration into your account
The third step in opening a forex trading account is registering your account. To do this successfully, your broker will require that you supply them with your personal information among other details. This is an important part of the account opening process that allows the broker to know their customer and confirm the validity of the information provided for security and safety purposes.
After the forex broker is satisfied that the personal information provided is true and valid, they will then send you information that will allow you access to your account. You will then need to deposit your initial capital to start trading.
Finally, you can now start trading with your new live forex trading account.