So you are now well versed with the concepts of the forex market and the forex trading and you’re ready to open a live forex trading account? Well, opening an account for forex trading is not that difficult. Since the internet era began, many fx trading brokers have emerged to help individual traders who have internet access and some capital to start trading currencies.
What is a Forex Trading Account
A forex trading account is basically an account that you open on a broker’s website to provide you access to financial market trading. The account allows you to deposit funds and holds it for your trading transactions. If you’re a beginner in FX trading, it’s recommended that you first open a demo account that allows you to trade with virtual money in order to get acquainted with the real forex trading. The practical skills gained in a demonstration account will help you reduce the risk of financial losses and increases your profits.
How to Open A Forex Account in the UK
Today, opening a forex account is as simple as opening a bank account. So, if you live in the UK and are confident and ready to open a real FX trading account, the following are the steps;
1. Find the Right Forex Broker
In order to trade currencies in the UK, you will need to find a reliable broker. Today, there are so many forex brokers that it can be confusing to know which to choose. The retail currency trading is a lightly regulated activity and therefore it’s easy to get conned by scammers who refer themselves as brokers. Thus, it’s important to carefully research the broker’s reputation before opening an account with them. First and foremost, ensure that the broker is regulated by the Financial Conduct Authority, which is the official forex regulatory body in the UK. Second, check with the agency to verify if the broker has any history of irregular or unfair practices.
It’s also critical to research the services offered by the brokerage company before opening an FX account with them. If they have a demo account, open it first to test their trading platform. Check if the software provides the necessary tools for trading especially analytical resources that are helpful in making better-informed trading decisions. Try their customer support to check how reliable they are in responding to your concerns. You will also want to compare fees like commissions charged by the brokerages for their services. Often, forex brokers will charge you through a bid ask spread, which is basically the difference in the buying and selling prices of the currencies. But some brokers may charge other types of fees for their services which can reduce your profits so it’s important to consider that before making your final decision.
2. Choose your preferred trading account
Usually, forex brokers offer their clients several types of trading accounts each with various trading conditions. There main types of FX trading accounts – standard, mini, micro, VIP and managed. Each of them has its own advantagesand disadvantages. So, check the types of accounts offered by your broker and go through their terms and requirements before making your decision.
2. Open An Account
You will need a few things to open a forex account in the UK. The Procedure for opening a forex trading account and verification differs with different brokers. But here are the common stages of opening an account
1. Visit the brokers and website like Forex.com or XM and fill the Registration form.
2. Confirm your account opening on your mobile phone or email.
3. Verify your identity, according to the broker’s safety requirements.
4. On the broker’s portal, log in to your account with your username and password.
5 Make a minimum deposit of funds into your account. Here, you need to transfer funds from your bank account into your account through credit card, debit card, check, or electronic transfer.
6. Once you fund your account, then you are now ready to start forex trading. Before making your first trade, review any special details provided by that your broker regarding the use of their trading platform. Some brokers may offer simulators with demo account to allow you to practice before you actually put money into your trading.
Opening a forex trading account is not a complicated procedure. However, you’ll want to carefully research the services, reputation, and trading fees charged by the FCA UK forex brokers before making your decision.