You have refined your trading strategy after carefully repeating the steps of Forex trading through your demo account. Now you want to open a real account to trade real money. You've identified a source for your venture capital, but you don't know what to do next. This article will guide you through this process.
Choose a broker
First, you need to decide which broker you will use for your real account. This may or may not be the same broker that hosted your demo account. Ideally, you will have tried the demo platform of several brokers in order to familiarize yourself with the advantages and disadvantages of each. Just because a platform can be user-friendly doesn't mean the sponsoring broker is the best at keeping your account alive. Has the broker been around for some time? Is the broker financially sound? Does the broker have a reputation for honesty and fairness? Are your orders likely to be fulfilled to your satisfaction, including during times of volatility? Are the spreads reasonable compared to others? Does the broker take positions opposite to yours, thus creating possible conflicts of interest? Is the broker sensitive to issues and complaints? Is there good technical support for the platform?
Here are some of the questions that you need to decipher before choosing the broker. Once you've decided, the chosen broker will ask you to complete an application – usually online – and submit identification documents, such as your passport, driver's license, and / or utility bill. Do you remember the American Patriot Act? Well brokers have to cover their tails in case you turn out to be a money launderer in drug trafficking or a little bit engaged in terrorist activity.
Get your money there
Most brokers allow you to easily fund your real account. It’s not a big surprise. After receiving your application and identification documents to open an account, you will be assigned a username and password for your account. The broker will inform you about the different options available to you to fund your account. Perhaps the easiest and most convenient way to transfer funds to your broker is using a credit card. Once you've made your initial deposit, the process of adding funds whenever you want becomes even easier, especially with a credit or debit card displaying a widely used brand logo. However, this is not the exclusive way to transfer funds.
Another option is to transfer money from your bank to the bank account specified by the potential broker. This method, of course, involves being charged a wiring fee by your bank. Alternatively, you can use the old-fashioned ways of writing a check or money order and sending it by post or courier. Naturally, your account will not be funded right away, as these need to arrive first and then the checks need to clear before you give the green light for trading. Brokers will not allow you to trade their real money while your "check is in the mail" or while your NSF check is bouncing around the world. So make sure you have the funds in your own checking account when presented for payment at your bank.
Once your funds have arrived
When the broker receives your funds, you will be notified immediately. This notice can be given by e-mail, allowing you to start trading immediately. When you start trading your real money, you might feel some trepidation. But don't worry. The smart trick is to stick with your training and trading plan. Don't let your emotions get the best of you. If you are trading on an online platform, you will be allowed to see a running balance of funds in your account, adjusted based on your trading results. A good platform will also have tools like margin calculator, leverage adjuster, stop loss, trailing stop, etc. designed to help you protect your account funds once you start trading. trader.
It is also important to know how to withdraw money from your account. Be sure to read the broker's instructions on this. Some brokers will allow you to withdraw funds only by the same method you used to fund the account. If so, be aware that some methods take longer to receive your funds than others. Happy trading!
Sandy Robinson, J.D., Copyright 2007