How To Set Up An Online Trading Account

Setting up an online trading account is the elementary step to make once you decide to enter the field of forex trading. You must be very careful when signing up with a broker since almost every company you chance upon makes exquisite claims about their platform as well as other features. If you look for some key factors, you can avoid being confused and tie up with a reliable firm.


You can start you search for an online trading account with having a glance at the trading platform which most firms will put up as an image on their sites. A good platform will have features like displays of real time exchange rates for various currency pairs, news, chat options, charts, your account balance summary and various resources which will help you devise good strategies. You can stay away from those which offer no demo accounts and check the reputation of the firm in making fast trades.

Although you might not need advanced statistical tools at a beginner, it is good to ask the firm about the available currencies with them before signing up for an online trading account. All the major currencies must be offered even if they don't have any exotic pairs. Check the various types of accounts which you can have so that you won't have any misunderstandings about your initial deposit and minimum balance required, if any.

While setting up the online trading account make sure that you are comfortable with the spreads offered. The margin, gearing and leverage are other factors which you must understand. A lower margin mostly translates to higher leverage. Although higher the leverage, greater will be your profit, it also means that if the market goes against you, you will be hit on the face.

Your online trading account must come with a trading size you are comfortable of. If you are a beginner, lower trade sizes will be ideal for you. On the other hand, an experience trader will find minimising his trade sizes an unnecessary precaution. You must select a firm offering minimum and maximum trade sizes which suit you.


Certain other features require the same attention as these when opening an online trading account. Topping the list is the security of the firm. The reputation and reviews along with customer care comes next. You must also check the actual hours that the broker operates and whether there is any option to carry positions over the weekend.

About the Author

Florence Shaine is an Ivy League graduate in Quantitative Finance and International Relations. She is a qualified Investment Adviser specializing in Forex Day Trading and Arbitrage. Her points of view on choosing an online trading account are highly sought and regarded. She may be reached at florence.shane(at)gmx(dot)com.