Forex Accounts Resources

Opening a Forex Account Explained

by: Nicolas Prudhon, PhD

Forex trading requires you to trade to have open a trading account. Now for newbies, this kind be a difficult task when facing the number of accounts that are offered to you. We are going to review the different accounts here:

• Account Demo Forex.
• Account Forex Mini .
• Account Forex Trading .
• Forex Account Managed .

This decision regarding the type of account you will open varies a lot depending of your porfolio size and the degree of involvement that you wish to have.

• Demo Account : A must be for beginners or experienced trader looking to implement a new trading system.
   
• Mini-Account: This type is similar to the regular one except that the lot that you are trading are $10,000 each. This kind of account is ideal for small budget or beginners. The usual minimum to open such account is usually $250, but I would recommend you to have at least U$5,000, where U$20,000 is preferred. And remember that by capital, I mean money that you can lose.
   
• 100K Trading Account: This is a regular trading account. 100K here means that the lot that you are trading are equivalent to $100,000 each. The usual minimum to open this type is usually $2,500. I would recommand you to open one only if you have a strong successful experience in trading, and a capital of at least U$50,000, where U$100,000 would be preferred.
  
  
• Managed Account: This types are managed by the broker themselves, you only provide the funds and the broker will actually trade for you. Consider this a kind of investment similar to a mutual fund but with higher risk. The minimum size of a managed account can vary form U$10,000 to U$1,000,000.
   

Forex Account Registration and Activation

It time to register your account. For this, you just have to fill the online form provided by the broker of your choice. In addition, you will have to send some additional paperwork.

The required paperwork to register a new account varies from broker to broker but usually always include the following documents:

• Application form.
• Risk disclosure statement.
• Consent to conduct business electronically.
• Customer agreement.
• Proofs of identity and residence.

Upon reception of the paperwork and the initial funding, the broker will send send you an email explaining the different steps to activate your forex account.

At that time, you will be given a user name and password. Don't lose them as they are the key to your forex trading platform and forex account!

Now you just have to launch your forex broker trading platform, identify yourself with your user name and password and you are good to go!

Before starting, remember that Forex trading is not appropriate for everyone. There is a substantial risk of loss associated with trading this market. Losses can and will occur.