Before you can start trading, you need an account (Account) open with a broker. What is a broker? To put it simply:, a broker is a person or company that executes trading orders at the trader's request. A broker gets a fee for his services, Range incurred by an order.
FOREX is a 24- Hours market, therefore, you should use your Internet platform 24- Hours can trade. Most when brokers allow their clients to trade over the Internet. The trading software is very important. Familiarize yourself with it, try to get a feel for the options offered.
What should the chosen platform offer in any case?
Exchange rates must be available in real time – A clear layout with all important information about your account: Balance, Summary of actions taken, Accurate information about open positions, and so on. Most trading platforms can be used either directly on the web or through a program that you install on your computer. Which variant you choose lies with you.
Platforms that are served directly on the website of a broker have the advantage that you do not have to install a program. You can access your account from any computer with an Internet connection using a password. A trading platform operated by a program on your computer allows you to trade only from your own PC. Unless you install the software on every computer you use (Software is free).
Installed programs generally run faster, this is a big decision in volatile markets.
Think about your high-speed Internet access
FOREX is a market with fast movements. Sometimes it depends on seconds, in which you get current courses and have to make your decision. A weak Internet connection can cost money. Without a reasonable connection, you should not think about online trading, make sure you have stable and fast internet access.
Most brokers offer charts and technical analysis options. Clarity and user-friendliness can be very different.
Mini and Micro Account
Your broker should offer you the possibility of small accounts “Mini- Accounts” or even smaller ones “Micro- Accounts” to open. With it, you can start with just a few dollars, Start trading. Other points that are important when choosing a broker:
Available currencies
Your broker should definitely offer the seven main currencies (USD, EUR, AUD, CAD, CHF, GBP and JPY)
Cost of an order
Transaction costs are calculated in pips. The lower the number of pips per order, the greater the profit for you.
Margin Requirements
The lower the security deposit (or how higher the leverage), the higher your chances of winning big. Some brokers offer leverage of up to 1:400.
Minimum allowed trade sizes
The size of a lot varies from broker to broker. The default size is set to 100.000 USD traded. For beginners, some brokers offer the possibility with Mini- Lots of 10.000 USD to trade. Depending on the leverage, a stake of only 25 USD required.
Rollover Fees
Rollover fees are due to the difference between the interest rate of the country of the base currency and the interest rate of the country of the second currency. The greater the difference in interest rates of the currencies involved, the higher the rollover fee. Brokers charge this fee in different ways.
Summary, what you should pay attention to when choosing your broker:
1. Low spreads
In Forex trading, the spread is the difference between the buy and sell price of a currency pair. Small spreads save money.
2. Low entry sums
For those who are new to the business and don't have millions loose, enable mini- and micro- Accounts get started. With some brokers, the entry is already with 50 US Dollar possible, however, we recommend with 1.000 US Dollar to start.
3. Ability to automatically execute an order
The right time when an order is executed, decisively decides the amount of the prize.
4. Free Charts and Technical Analysis
Choose a broker that provides you with up-to-date charts. So you can make your decisions on time based on the charts.
5. Leverage
A big lever can make you rich quickly but also swing in the opposite direction just as quickly. A rule of thumb for inexperienced traders, do not use leverage higher than 1:100 for standard accounts (Lot = 100.000 USD) or 1:200 with a Mini Account (Lot = 10.000 USD).
Opening a FOREX account
A new online FOREX account (Account) to open, can be done in three steps:
- Selecting the account type
- Registration
- Activation of the account
Before you invest a penny of your hard-earned money, you should definitely practice with a demo account. If necessary, have your demo account reloaded several times, how to do this We explain to you in one of the next chapters.
Account Types
When you are ready to trade with real money, then you have the choice to open the account under your own name or a company name. Furthermore, you have to decide whether you want a standard- or a Mini- Want an account. Inexperienced traders and those with little capital should definitely opt for a mini account. A standard account is more for experienced traders with enough capital.
Always read the fine print
Some brokers also have so-called “Managed Accounts” to the selection. If you want your broker to trade for you, you should choose such an account. However, we do not assume this, You read this page to determine your own trades. By the way, for an account managed by the broker, very high entry sums are usually required, 25.000 US dollars and more and the broker pockets a large share of your profit.
Also make sure you open a FOREX Spot account and no forwards- or Futures- Account.
Registration
When registering, your broker requires you to provide various information. Sometimes more detailed, sometimes not just name, Address and Email, it depends on the respective broker. Fill out the form truthfully, so that later everything runs smoothly with a payout of winnings.
Activation of the account
When your broker has received all the necessary data, you will receive an email with the further steps for activating your account. When all this is done you will receive another email in which username and password will be confirmed. Now all you have to do is log in and start trading.
Before you get started, wait another minute.
We would like to remind you that you have understood everything on this website, before you trade with real money.
Why?
If you are reckless, you could lose your money and freak out. But you should not think, now I read everything on this website, then nothing can happen to me anymore. You will probably lose much less money, as if you don't but there is still a high risk.
Read it all, convert the individual points in the demo account, so that you are familiar with everything. Now is the right time to trade with real money.
