Posted by forex at 4:52 AM
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1. Decide which foreign exchange broker, or Forex broker, with which you want to invest. There are many different Forex brokers available that offer various investment options. It is a good idea to do research on your future Forex broker. You should find a reputable broker that offers the lowest spreads, that is backed by an established institution, that has extensive tools and research abilities and that offers a wide range of leverage options.Some online forex brokers offer free demo accounts. Demo accounts allow you initially download and test the trading software without requiring any of your own capital. It is a good idea to take advantage of this feature.
2. Decide which account in which you want to invest in and how much money you are willing to invest. You have the option of opening a customer foreign currency account or a foreign currency account for individuals.The amount of money needed to open an account is dependent on the broker. Different Forex brokers have their own unique minimum account size which varies from $1 to $2,000. Most Forex brokers suggest starting an account with at least $500. Mini, standard and premium accounts can be offered. Mini accounts usually range around $300, standard accounts are around $2,000 and premium accounts are usually around $5,000 to $10,000.
3. Make sure you have the required documents. To open up an account, banks and on-line brokers usually require some personal information about yourself. Different forms of ID are required such as your drivers license, Social Security number and proof of residence verification. If you were to open an international account, a passport is usually required.To open an on-line account, you must fill out the application at the broker's on-line address. This usually takes anywhere from five to 10 minutes. Online brokers usually request information about your bank account. You must also sign a margin agreement. The margin agreement allows the brokerage to interfere with your trades to protect its interests as you are as of now trading with borrowed money.
4. Make sure that you have the proper funds in your bank account to help finance your trading. Your account can be funded by credit or debit card, eCheck, wire transfer and personal or business check. Most brokers require a minimum balance requirement. Funds can be deposited usually within a couple of business days.