After doing adequate research on the various Forex brokers available online, and selecting the one that is able to meet your specific needs and trading expectations, there is just one thing left to do: opening your forex account. While the process of opening this trading account will be different from one forex brokerage to another, the majority of brokers will require the following general information from traders: name; email; phone number; address; country of citizenship; email; date of birth; employment status; annual income; account password; net worth; and your existing trading experience.
While you may think that some of these questions are a bit invasive at first look, you need to understand that regulated brokers – which are the only kind you should work with – are legally required to gather all of this information prior to allowing you to trade any assets or currencies. This is because the brokers are responsible for protecting traders from any identity theft or other instances of fraud. Any regulated and reputable broker will request this information. If you find a broker that does not ask for this information, then you should probably find a different broker.
Once you have provided your broker of choice with the details listed above, then you will have to accept the risk disclosure. It is crucial that you read and fully understand the risk disclosure, since trading forex does involve some risk. By law, a regulated broker has to remind you of the risk that is involved with forex trading. If you find a broker that does not provide a risk disclosure, then you may want to proceed with caution when it comes to opening your trading account.
You will have to also send in a type of identification document, such as your driver’s license, passport or a government issued identification. There are a number of brokers that will also request that you provide address verification by providing them with a copy of your utility bill. While this process may result in a delay of your trading for several days, it will help to ensure a safe trading environment.
Once the broker has successfully verified your identifying documents, then all you have to do is open your forex account and start to trade. It is always important to remember that starting small is essential, that way you will not lose more than you can afford.