What Is a Forex Account and How Do I Open One?

If you want to invest your money in currencies, stocks, ETFs, bonds, futures, mutual funds, or cryptocurrencies, then you need a brokerage account, also known as a Forex Account. You can’t trade any of these through a normal checking account. Different brokerages vary in terms of the investment vehicles available and the fees associated with their accounts.

What is a forex account?

A forex account is an investment account. Once you’ve deposited money into a forex account, you can use that money for online forex trading. Also, you can connect your account to a money-manager or to a signal-provider to buy and sell all the available markets.

Which forex account is right for you?

There are several types of forex accounts. Which is right for you will depend on your investing goals, what kind of investments you plan and how much help you’d like in choosing and managing those investments.

Online or discount forex account

This is a trading account with an online brokerage company, like AM Broker who allow investors to trade on their own, through an online trading platform on any device and operating system. If you want to trade on your own, an online brokerage account is for you. Additional, you can build forex robots or forex EAs that use algorithms and advanced software to automate trading decisions.

>> Here are our options for the best online forex account.

Managed or full-service brokerage account

This is a brokerage account that comes with investment management, from a money-manager. The managed account service brings investors and traders together, allowing investors to earn on the Forex market without trading on their own and managers to receive additional income through efficiently managing investor funds.

Social account

A service that allows your account to automatically copy trades of one or more chosen expert traders. To help you identify the top traders most suitable for your needs, these services include trader rankings complete with detailed data on their styles, performance, maximum drawdown, and other risk data, experience, and so on. Basically, you select one or more of your favorite experts based on the data available on them and set up an account that mimics their every trade (copy trade service), based on different settings allowed for managers. Experts are compensated based on performance measures that vary from broker to broker, such as profitability and number of followers. You set up a trading account, then select the trader(s) that your account will mimic.

>> Here is how you can connect your account to a professional

How to choose a forex account

Once you’ve decided which type of forex account you want, you’ll want to choose an account provider - reliable forex broker. When comparing forex account providers, look for one with no account fees, a dedicated forex account manager and advanced trading tools included.

You’ll also want to look at what the broker charges for the investments you’re interested in: If you want to trade just forex look for low spreads, support, and trading tools. If you want to trade stocks look for a broker with a low trade commission. If you are an ETF investor, choose a broker that offers no-transaction-fee funds and commission-free exchange-traded funds.

How to open a forex account

Setting up a forex account is a simple process — you can typically complete an application online in a few minutes.

Once you’ve opened forex account, you’ll need to initiate a deposit or funds transfer. The fund's transfer process can take anywhere from a few minutes to a day. Once that is complete, you can begin trading.

Launch the web terminal or download the platform and connect to an account.

To start trading from your mobile device, install MetaTrader 5 from the application store. Tap on a server line a broker name in order to select it and insert your Login and Password. It instantly connects to your trading account.

Final words about brokerage

When you really like a product, you tend to share it with your friends and online following, so that they can enjoy it as well.

If you currently have a forex account with an online broker, you may be able to earn money while showing your friends and following how to start trading. Of course, if you don’t currently like your brokerage account, make sure to tell your broker! If you’re a longstanding client or somewhat active trade, most brokers will try to accommodate your special needs.

The benefits for referring a friend may bring you up to 2.000 CPA or up to 50% Revenue Share.

>> Let's get you started

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Categories:  Education