Forex trading has remained a buzzword today, as we see so many people who are now getting more interested in forex trading. A lot of people today are making millions every year via this business medium.
It is worth note taking for us to mention that this niche is very risky. In the rest of the article I'll outline some basic factors that could be considered when setting up your first forex trading account. A clear understanding of existing forex market policies is necessary before setting up your first forex trading account. You should know that the forex market is not an easy niche.
You can open a forex account in your name if you trade the FX market for fun. This is achievable via a forex demo account. A forex demo account is a free account that is offered by forex brokers for new customers.
This sometimes serves as every trader's first forex trading account. It is normally a marketing strategy in itself by the broker to make a positive statement about its services to all intending live account holders. It has a sole aim of encouraging more people to come on board and trade via a particular broker.
Opening a free demo account would cost you nothing but some of your time, as it is designed to offer you paper money, practice money or virtual money that would invariably give you the chance to trade the FX market. The demo account uses virtual money to offer customers live trading experience and also get them acquainted to the workings of the currency market.
In practice your first forex trading account is the demo account, but in real sense a live account is your first account for forex trading. Thus it is advisable that you join a practice account before you setup your first forex trading account.
When you open a forex trading account, you might decide to open a standard account, which basically has a minimum deposit of $100,000. On the other hand, you can open a forex mini account, which starts with a $10,000 minimum account opening balance.
On the other end you can decide to open a micro account with an opening initial deposit of $1,000. Although the figures stated here might vary between brokers, it is advisable that you start trading on a micro account.
In the course of going about opening an account for forex trading, the forex brokerage firm would require that you fill out some forms. Once the forms have been duly filled, you'll be asked to send alongside scanned copies of your identification alongside proof of residency to validate the information that was provided.
You'll get your account username and password sent to you via email or sms after they have been approved by the firm. This you can use to log on. You can proceed on trading the forex market after at least three months of practice on a demo account.