Before opening a forex trading account, you should first find the right forex broker for you and this is the whole purpose of this blog. I am sharing my experience and observations of 15 years of forex trading. Within those 15 years, I have traded more than 30 different forex brokers in several different jurisdictions. Please check my list for my personal reviews.
Okay, let’s talk about how to open a forex account. So you have done your homework, gone through web sites, talked to the customer representatives and gathered the information necessary for you about the broker and you picked one that feels right and the best for your trading style.
Next step is to fill the registration form. This step is relatively easy. Most of the forex brokers (it may vary due to regulation) require you to put your basic information such as name, surname, date of birth, place of birth, country of residence, gender, address, e-mail address and phone number regardless of the account type which you are intending to open.
Following step is activation. After you submitted the required personal information, you are going to have to validate the genuinity of the account. In other terms, you have to proof that the personal information that you have submitted is correct and you are the person who you have declared on the registration form.
How to Validate Your Forex Trading Account?
In order to get your account validated, you are required to submit (i) copy of your national ID card, passport or driver license as proof of ID and (ii) copy of utility bill or bank statement as proof of address.
It takes between one hour to few days for the broker to review your documents and validate your account however in my case; I don’t remember it ever took more than two days and only two hours for the fastest. I always use passport as proof of ID and utility bill which is not dated older than 3 months as proof of address.
In addition to those documents, some brokers may demand different documents depending on the regulation and a copy of your credit card if you funded your account with this payment option.
The validation step shouldn’t scare you. As long as you have the documents scanned and ready on your computer, opening a forex trading account is straightforward and it doesn’t take long time. As always, you can contact me personally, if you have an inquiry about opening a forex trading account.
Types of Forex Trading Accounts
Different brokers offer different type of accounts with different features for traders but offering those two types of accounts have become pretty much the standard in the industry; live and demo account.
Live accounts are the real deal. They are where traders deposit real money and earn / lose real money. In order to be able to open a live account, the account holder has to go through a validation process in which they have to proof the genuinity of the account by submitting an official ID document and proof of address.
Demo account is offered by almost all of the forex brokers as a practice trading account that is funded with virtual money. It is identical to a live account in many ways such as it shows live quotes, lets you buy and sell instruments offered in live account and allows traders to use automated trading systems (erxpert avdisors, robots). The most important difference, and that is vital, is that demo accounts enable investors to trade with virtual money which means you wont actually lose or earn money. Demo accounts are a great way for newbie traders to learn forex trading without suffering big financial damage and for experienced traders to experiment of their new trading strategies or automated systems.