Posted by forex at 9:34 AM
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1. Look for broker reviews. A good place to start looking for a broker is at ForexPeaceArmy.com, Trade2Win.com, and EliteTrader.com. These are forums that all have reviews of brokers from people who have personal experiences with them. They can tell you which broker has the best spreads, which ones have the most reliable software, and which ones have good customer service and fast withdrawals.
2. Find a broker who is registered as a Futures Commission Merchant (FCM), is a member of the National Futures Association and is regulated by the Commodity Futures Trading Commission (CFTC). Unlike the stock market the Forex market is a lot less regulated and so are their brokers. So make sure that the one you choose is a member of at least two, if not all, of these organizations. Because, unlike the bank, your money is not federally insured with a forex broker.
3. Fill out the application form on the website. You can also print out the PDF and fax it in. You will need to provide your name, your address, the level of trading experience you have and your banking details for withdrawals.
4. Send in two forms of identification. One either needs to be a picture ID and the other needs to be a bill or a banking statement with your address on it. A cell phone bill is usually not accepted. You can either fax these or scan them. The phone number or e-mail address will be provided on your application form.
5. Deposit your money. You will need to wait about three to five days for your application to be processed and accepted. After that you will get a log-in ID along with deposit options. Most online brokers will accept either a credit card or wire transfers. Some brokerages have a minimum deposit requirement of $25, while others have a minimum requirement of $2,500. It all depends on the broker.