When you have educated yourself on how to make money with currency trading and you are ready to actually trade, you will need to open a currency trading account. This process will take a little more research and study. There are many brokers that you can potentially trade with. Finding the right one as well as the right currency trading account for your level of experience is an important consideration.
Many brokers will allow you to open a micro account. These require the smallest amount of money, sometimes as little as $250.00. Obviously these accounts may require replenishing on a regular basis if you are just beginning to trade. Your stop-loss orders will be activated more quickly because you don’t have much room for price fluctuations.
The next level up in account size is the mini account. Mini accounts can usually be opened for $2000.00 to $3000.00. At the higher dollar amount your stops can be placed in a way that will allow you to withstand market fluctuations more easily. With a mini account your profits will be larger than with a micro account. If at all possible, it is typically easier to start at this level rather than the with the micro account.
The standard currency trading account will start around $3500.00 to $5000.00 and up. In the standard account you will be trading contracts at the 100,000 level. If you are just beginning your trading career, you should only start at this level if you are able to withstand a larger capital loss.
The best way to get started is by opening a demo currency trading account. This is an account for practice only. Most brokers will allow you to do this initially to get a feel for the market as well as their trading platforms. You can also test out your trading strategies and adjust them where necessary. These accounts are free so you should open a demo account with several different brokers to find the one that you feel most comfortable trading with. Making a final decision will be easy after you spend a little time testing a few different platforms.
Use the free demo accounts that most brokers offer to practice trading at first. Open them with 3 or 4 different brokers so that you will see what it’s like to trade with different platforms. This will give you the opportunity to get a lot of practice before you start trading with real money. You will be able to try you strategies and adjust them if necessary without losing money. You will be able to easily decide where to open an active account after a short amount of time.
You will typically be offered several ways to fund your account. You can fund it with a credit card by just entering your card number online. The funds will usually be credited within 24 hours. You can sometimes use an electronic check to send funds. This may also take up to 24 hours to complete. If you prefer to use a check you will have to wait until the check has cleared your bank in order to start trading.
When opening a currency trading account it is recommended that you look at several different brokers and select the one that makes trading the smoothest for you. You want to focus your attention on your trading strategies not on the mechanics of trading.