Author - Mia Lim
If you're new to forex trading, you're probably unsure of where to start! There are so many choices to be made and when you're risking your own hard-earned money, you want to be sure you're making the right one. This article aims to provide a few guidelines for opening a forex trading account.
To start with, there are both demo and live accounts. If you're a beginner, start with a demo account. You can get between 50-100k in virtual money to trade. This will allow you to get a good feel of the platform: how to place trades, general services that are offered, layouts etc. There are lots to choose from! My advice would be: before you settle down, play the field! There is no harm in opening several accounts to get a feel of each one. Especially when you're starting out, it's important to get a feel for the trading interface and to know your way around it.
When it does come to the time to open a live account, be sure to check if there is a minimum capital requirement. This can vary depending on account type and size. A suggested deposit size for a beginners account could be anything starting from $2500.
There are also accounts that are professionally managed. These aren't recommended for beginners especially if you intend to trade yourself. These can incur extra charges and have a higher minimum deposit requirement. Depending on the service provider, some allow professional brokers to utilise your money and make trades for which the broker takes a fee out of the profits.
Another thing to be aware of is what are the spreads that are being offered to you. These are measured in "pips" (percentage in point). However, nowadays it is getting very competitive so it should be relatively easy to get a good deal. Again, if you do your research with the demo accounts you can get a better idea of what spreads are offered from both big and small sized companies.
If you're a beginner and ready to open your forex trading account, you might also want to consider automated trading.
If you're new to forex trading, you're probably unsure of where to start! There are so many choices to be made and when you're risking your own hard-earned money, you want to be sure you're making the right one. This article aims to provide a few guidelines for opening a forex trading account.
To start with, there are both demo and live accounts. If you're a beginner, start with a demo account. You can get between 50-100k in virtual money to trade. This will allow you to get a good feel of the platform: how to place trades, general services that are offered, layouts etc. There are lots to choose from! My advice would be: before you settle down, play the field! There is no harm in opening several accounts to get a feel of each one. Especially when you're starting out, it's important to get a feel for the trading interface and to know your way around it.
When it does come to the time to open a live account, be sure to check if there is a minimum capital requirement. This can vary depending on account type and size. A suggested deposit size for a beginners account could be anything starting from $2500.
There are also accounts that are professionally managed. These aren't recommended for beginners especially if you intend to trade yourself. These can incur extra charges and have a higher minimum deposit requirement. Depending on the service provider, some allow professional brokers to utilise your money and make trades for which the broker takes a fee out of the profits.
Another thing to be aware of is what are the spreads that are being offered to you. These are measured in "pips" (percentage in point). However, nowadays it is getting very competitive so it should be relatively easy to get a good deal. Again, if you do your research with the demo accounts you can get a better idea of what spreads are offered from both big and small sized companies.
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