How to Open A Forex Account - Forex Platform Real Accounts - How to Open Real MT4 Account
This tutorial will show traders how to set up their trading account so that they can begin to trade forex. Before opening a forex account there are various factors that traders should consider before taking this step.
To open a forex trading account, traders need to find an online forex broker and then they can setup their trading account with the broker that they choose. Once a trader opens this account the trader will then use it to place trades in online forex market & the profits & losses that they make when trading will be accounted for in this forex trading account.
A trader will need to consider the following factors when opening a forex trading account:
Regulation of Forex Broker
Before opening a forex account traders must first know that they should only choose to trade with a regulated forex broker. In forex there are hundreds of forex brokers, some are regulated and other which are not. A trader must do due diligence when selecting a broker and check the regulation license details of the broker they want to trade with. Remember some brokers which are not regulated will write an article on their forex website about forex regulation and link to this article - if a trader is not careful they will be tricked into thinking that the broker is regulated, make sure to check the license details of the broker and you can also confirm these details with the regulatory authority regulating the broker.
Leverage
Traders should consider the leverage offered by the broker when it comes to opening and trading accounts. With leverage a trader controls a big amount of capital while using little of their capital. Leverage is one of the reasons why a forex is very popular because traders can make a lot of profit from forex using little of their money.
A trader should therefore consider the leverage given by a broker some brokers give 100:1 and others as high as 400:1, with leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have & therefore the trader using this leverage will control $400,000 which they can use to open trades with.
Stop Out Level
This is where a broker will close all the trades of a trader if the traders make losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a trader’s transaction getting closed. However, there are forex brokers who are not very straight and these brokers will set the stop out at 100 % and with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a broker setting the stop out at 20 %.
