Of all the business that runs the global economy, forex trading is one crucial piece in creating the big picture. As the hype surrounding the trade increased exponentially over the past few years, more people are trying it out. But you cannot just blindly sign up for the trade without understanding its working and basics. If you are stepping into the forex trade for the first time, you must gather all the information, train yourself for it, and then open an account for it.
Check for the brokers who can help you out with the trade, and decide on the one who looks to be promising enough to guide you through the track of making profits. In order to get this right, you will have to go through some forex demo accounts of various brokers. Once that is done, all you need to do is to go ahead with the sign-up process, which is not a strenuous task to get done with; only as simple as opening a bank account. Let us have a look at how a forex account is opened and what its requirements are.
Requirements to Get Started
The very first step to starting your forex trade is of opening an account with a broker. Personal information has to be provided in the early stage to set up your account. Once all the basic details are entered, you can sign up into the account and look for the features of the platform. Firstly, you will need to enter the following information about you:
- Phone number
- Currency type for the account
- Password protection for the trading account
- Date of birth
- Country of citizenship
- Tax ID or Social Security Number
This page will be followed by the basic financial questions about the annual income, trading experience, net worth, trading objectives.
Why the Details?
The first question that arises in the mind of every beginner would be of the need for providing the brokers with this long list of information. That is to comply with the law that puts the brokers in a position to keep the necessary data about all their clients. Government regulations have been imposed in such a way that the customers stay protected in the trade. As forex went retail sometime after its launch, chances for the account holders(Must Watch) to be in trouble increased.
Not all trades would have such mines waiting for your massive leap on it, but there have been reports in the past of such incidents. This made the brokers gather information about everyone entering the platform as a pre-emptive measure. Make sure that your broker asks all these data at the time of sign-up since they are obliged to. If you come across any such broker who doesn’t ask for such information, there surely would be something murky about it. Go ahead and check about the broker’s authenticity and current status before signing up.