Opening a currency trading account is the first step you need to get started in the forex market. Although opening a trading account is an easy process you need to consider many things before you choose to do so. If you are a beginner you are most likely to be confused with the many choice of trading accounts and it is best to gain knowledge about them so that you are able to make an informed decision.
Top things to consider when choosing currency trading accounts
If you want to be successful in currency trading it is important that you choose the best broker to open a trading account. This is essential, as you may be able to get the best trading tools and service only when you choose a good broker. It is advisable to choose brokers who are regulated by the Australian Securities and Investments Commission so that you can be assured of their reputation and reliability.
The trading platform that you may choose to use for placing a trade should also be given equal importance when making your choice of trading account. You should choose a platform that suits your specific needs and requirements so that you are able to trade in an effective manner and make profits.
You can check to see the type of leverage that is allowed to be used by the broker and the spreads offered. It is best to choose brokers who offer you the most competitive spreads so that you are able to maximise the profits easily. Compare the brokers and read reviews about them on traders’ forums and blogs so that you are able to get an unbiased view of the services offered by them.
You may choose to opt for a demo or practise account if you are confused about the choice of trading platform. This can enable you to test the different features and strategies so that you are able to make an informed choice. When you opt for a practise account you may also be able to determine your comfort level with the platform.
Different types of currency trading accounts
Standard, mini and micro are the three types of currency trading accounts you can choose to trade. Mini and micro accounts are an ideal choice for beginners as they help minimise the risks of trading. The standard account is best for experienced traders as it can help them make big profits.
When you choose a standard account you may be able to earn big profits but you also need to be careful as any mistake can result in big losses. As you may be placing small trades with a mini and micro account it can enable you to reduce the losses even if the market goes in the opposite direction of the trade you had placed.
You may be able to execute a fast trade when you choose a good trading account and this can enable you to take advantage of the favourable market conditions and make consistent profits.