So, you've heard about this thing called forex trading and you want to know how you can get an account and start making money. As luck would have it, you've found the right place.
Forex trading is a legitimate business for many companies and individuals. Opening a forex trading account is similar to opening a bank account. You need to establish your identity with your forex broker so they can prove that they know who they have trading with them.
Before you actually open an account, you should consider a forex trading demo account. With a demo account you can get some practice trading but you don't have to go through verifying your identity or anything like that.
Before you can do anything, you'll need to find a forex broker. A forex broker is an intermediate party between you and the open market that handles your funds and trades and provides the forex trading platform for you to use.
Once you find a broker that you want to try, you can open a typical forex trading account, or a demo to get familiar with how things work. If you want to open a live forex account, here are some of the typical questions for a US based account.
- Name
- Address
- Phone Number
- Account Currency Type
- A password for your trading account
- Date of Birth
- Country of Citizenship
- Social Security Number or Tax ID
- Employment Status
- Annual Income
- Net Worth
- Trading Experience
- Trading Objectives
Some information is required by regulatory agencies. They generally want to know who is trading and why, and if they have the financial backing that they need to be trading. This is not to scare, you, but in some countries, the US in particular, they want to discourage traders from getting in over their heads and trading what they can't afford to lose. It's a loose check and balance system.
After providing this information you will usually be presented with a risk disclosure that reminds you that forex trading is a risky endeavor and that any money that you put into the market can be lost if you aren't careful.
Once you have submitted all this information, there is typically a verification required for your address and for your ID. It usually involved submitting a bill that has your name on it, and a copy of a government supplied photo ID to prove you are who you say you are.
People don't usually like to hand this kind of information over, but if you want to trade, this is what you have to do. If there are brokers not asking for the majority of the above information, you may want to check out their legitimacy.
As forex trading becomes more regulated, these forms are likely to get longer and require more information.
Opening a forex trading account may seem like a hassle, but it is the least complicated step you are going to deal with. You can make good profits trading forex, but you have to take it slow and use some good judgment when trading. Unfortunately, most people don't have good judgment on day one, and they want to jump in and make big money quickly. This is what kills most forex trading accounts and leads to the statistic that 96 percent of forex traders are not making money.
If you want to make money after opening a forex trading account, take time to learn what it's all about and go slowly. This is the only way to succeed in forex trading for the long term.
