What traders Should Know Before Open Forex Account?
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As the largest and most liquid financial market, forex market attracts millions of corporate and individual traders to participate, for most of the retail traders, if they wantto get exposure to forex market, the easiest and most convenient way is to open forex account with a reliable online forex broker. Traders can start to purchase and sell their positions in forex market directly after opening the forex accounts. However, opening forex account is more than just filling out an application form. Before opening any forex account, traders need to know the tips about how to open forex account wisely.
- Step No.1: Select the right forex broker
The first step for open forex account is to select the right forex broker. Many traders might find themselves confused when choosing the right forex broker, since there are thousands of forex brokers available online. Well, to choose the right forex broker, traders need to figure out the following aspects of the chosen forex brokers and choose the ones suit them best. First, traders need to check if the forex broker is heavily regulated since a regulated forex trading broker tends to be a reliable broker who can guarantee safer forex trading environment. Moreover, traders also need to check out the quality of their trading tools and additional service, leverage, execution speed, customer services and so on to see if the forex brokers meet traders’ need and expectation.
- Step No.2: Use demo account to test the forex trading platform
Usually forex brokers provide more than one types offorex trading platforms for traders to choose from according to their preference and trading styles. To test which forex trading platform suits them best, traders can apply and download a demo account from their forex broker and try out the forextrading platform to see if it meets their need. Demo accounts offer traders the similar platform to get familiar with the forex trading platform and practice forex trading skills without risking their own money.
- Step No.3: Decide which type of forex account to open
When traders decide to trade forex live, then they need to choose which type of live forex account to trade with. In general, there are mini forex account, managed forex account and standard forex account. It is crucial for forex tradersto think through what they want to get from their forex accounts first.
First, Mini Forex accounts suits traders with tighter budget or lower level risk tolerance, since these accounts work similarly to the standard account, but in which currency are traded in lots of 10,000 rather than 100,000, allowing easy risk customization and lower entry barrier.
Second, managed forex accounts suit traders with some experience, who aim at higher profits but are not confident enough to trade forex themselves. This type of account works like hiring an investment advisor to manage your forex account, and money manager benefits from charging administrative fees from the clients.
Third, experienced forex traders can consider to open standard forex account. After open forex account, traders can develop their own trading system and forex trading strategies on the standard forex accounts. Meanwhile traders need to handle higher risk well since the standard forex accounts comes with 100,000 currency units.
The Things that traders Should Know Before Open Forex Account
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