In a foreign exchange market, to trade forex, you need a forex account. Forex account is the type of financial account that holds deposits in one or more currencies; Made with a financial institution or broker for the purpose of speculating on movements in the foreign exchange market. Forex account is different from bank account; while forex account gives you access to trade currencies, shares, indices and many other more assets. your bank is where your money is kept. You might have money in your forex account but you are not trading. You only trade when you order an execution on a pair of currencies or commodities predicting that one will rise against another. In this case, you win if your prediction is right.
How to open a forex account
To open a forex account, you need to get your documents ready for account verification,; That’s documents like national ID card, international Passport or driving license and utility bill. Then you need to choose a good forex broker, register a trading account by selecting from their account types, fill all the necessary required field, go through their terms and conditions, complete the registration by confirming your email and phone number if required; Upload your documents to verify profile, Download any platform of your choice possibly MT4 or MT5; Fund your account with currencies like Euro, Dollar cryptocurrency etc, depending on the broker’s method, and start trading. You might decide to try before trading, that will be good if you have not traded before or you want to get familiar with the broker you registered with. In this case, you need a demo account.
We believe that if have followed the above guide, by now your forex account is ready and waiting to use. We equally believe that why you opened forex account today is to make money, that’s all yes-yes. But unfortunately 50-65% of traders lose their Money after trading; This is a good reason why you should consider your temper before trading; And always trade with what you can afford to lose.
What to consider before Choosing a broker
First of all, there are thousands of brokers out there; but I will recommend few brokers for you. This is because:
To trade forex, you need to choose a broker that accepts traders from your country, or location.
Consider if that broker have all the quality you are looking for.
Choose the right broker and avoid scam.
Check your wallet and consider the minimum deposit of that broker.
Carefully go through the regulatory compliance and license number
Consider account types that’s if Muslim countries or not.
Platforms is still good to check
Security of your fund
Deposit and withdrawals type and time
We are happy you got all we said, it simply means that you are set to start making money from forex trading.
Note that to open forex account is easy, but to trade my be somehow challenging; So if you are beginner try to get our forex101 basic knowledge before you perform any trading.