The Forex market is an exciting place and nowadays, it is easily accessible to anyone online. In this day and age, the average person can start trading currencies very quickly from the comfort of their own home.
If you are interested in trading currencies though, you must first find and decide on an online Forex broker. Starting Forex trading with a demo account is recommended and experimenting with different demo accounts from different online Forex brokers is a good idea. You could also consider finding a broker that offers a free sign up bonus or similar. Finding Forex brokers online is not difficult as there are many good ones available.
When signing up for a Forex trading account, the broker that you have found and decided on, will most likely ask for the following information from you:
– Your name
– Your email address
– Your date of birth
– Your full address
– Your phone number
– Your chosen account currency type
– Your chosen account password
– Your country of citizenship
– Your social security number or tax ID
– Your employment status
– Your annual income and net worth
– Your previous experience (if any) in trading and your objectives.
You might wonder why brokers need all of this information. In reality, not every broker will ask for all of this information and some will ask for significantly less. Not only will it depend on the broker, which information you will be required to provide, but also where you are from since different countries can have different laws and regulations to follow. Forex brokers only ask for the information they actually need from you, in order to comply with the law. Regulations have been introduced in order to protect holders of trading accounts from harm, since the Forex industry became retail.
As already mentioned, not every broker will ask for all of the above information. However, all Forex brokers will ask for the majority of this information from you and if they do not, you should be suspicious and a little wary. If you ever doubt a particular broker, feel free to look them up. In the US, you could find out their status through the National Futures Association (NFA).
Risk disclosures are given to you during the final steps of opening your own Forex trading account. These risk disclosures are given to you for a reason. Although brokers warn you of the risks of Forex trading mainly to comply with the law, you should ensure that you fully understand the risks associated with trading currencies. Forex is a difficult business, especially for beginners and in general, there are more losers in the Forex market than winners. This is not to say you will be one of those losers, but you are more likely to be.
After providing all of the information that was asked of you, the online Forex broker will verify all of the information and most likely follow you up shortly, asking you to provide verification documents (for e.g. they might ask for a government issued ID from you). The broker may also request a utility statement from you, in order to verify both your name and your address. Although this can slow down the sign up process, do not worry. Remember, many brokers will provide a very speedy sign up process and they have an incentive to be efficient, since you will be providing them with business.
After the broker has verified the information that you have provided, you will finally be able to fund your new Forex trading account.
In conclusion, opening a Forex trading account is generally very easy. All you need to do is find and decide on a broker, supply them with some basic information, have the information verified and then you will be ready to make your first deposit.