Trading Forex has become an exciting way to make money online, where investors can experience swift and high returns from the financial market. The first thing needed to join this community and start trading currency pairs is opening a Forex trading account with a broker.
In this article, we will uncover everything a beginner trader should know about different types of Forex accounts before stepping into the sector.
- What is Forex trading?
- What is a Forex broker?
- Typical requirements for opening a Forex trading account
- Different types of Forex accounts
- Opening a trading account on Olymp Trade: Step-by-step guide
Interact with the underlined words and green dots to get additional details and explanations.
Explanations and definitions of terms.
What is Forex trading?
Forex, or foreign exchange, is an international market for buying and selling currencies, where profit can be made from fluctuation rates.
The Forex market contains numerous currency pairs that investors target to take a position on the future rate of the pair. When the primary foreign money is predicted to emerge as more dominant than the second currency, traders buy it. Likewise, if the second currency is likely to emerge as more dominant than the primary currency, they sell it.
Traders mainly make money in Forex when they correctly anticipate when the rate moves out of their favor, thus avoiding a loss of funds.
What is a Forex broker?
A Forex market broker is an economic carrier company that works as a bridge between retail investors and the over-the-counter market.
Opening a foreign exchange trading account is the primary requirement in buying and selling currencies. Once the procedure is complete, traders can make investments and buy/sell their preferred Forex pairs at any time.
Typical requirements for opening a Forex trading account
Opening an account with a broker is the most effective and easy way to join the Forex marketplace. Therefore, traders should know what precautions to follow before starting to trade.
The best part of Forex trading is that it has no barriers to entry 👍
People from all ethnicities and locations can open a Forex trading account, but some valid documents are required:
- Proof of identity — usually a passport, national ID or driver’s license
- Proof of residence — a bank statement or utility bill
- Source of income — a business, job or savings
If you have these documents, you are eligible to open an account with a broker, which may require personal information:
- Email address
- Phone number
- Date of birth
- Country of residence
While Forex trading works in some countries, it is prohibited in others, such as Belarus, China, India, Iran, Saudi Arabia, Canada, Pakistan, South Korea, Japan, and Turkey. Olymp Trade does not provide services to those in Europe, the United States, Canada and Japan, among other countries. Make sure trading on Olymp Trade is legal in your country.
Different types of Forex accounts
Getting involved with Forex trading without understanding the different types of Forex accounts can be confusing. Worse, opening an unsuitable account for your purposes may prevent you from reaching your financial objectives.
Here are the typical Forex trading account types used by brokers.
Forex demo accounts 🙍♂️
Using demo accounts, investors can see how buying and selling work on the market and are able to test different strategies at no financial risk. In addition, demo accounts provide $100 to $10,000 to practice trading strategies with.
On Olymp Trade, you can easily open a demo account with preloaded digital funding. The prices and quotes are similar to that of the actual marketplace, and buyers can easily adapt to real market conditions.
Standard account 👨💻
Standard accounts enable buying and selling in accounts, appropriate for intermediate investors. If you consider that you have learn enough foreign exchange trading information and are geared up to make a profit, this account is good for you.
In general, standard accounts usually require a minimum $100 to $500 deposit.
On our platform you can open a standard account in just a few seconds. It is possible to make a deposit using a variety of currencies, including USDT.
VIP account 👨💼
A VIP account is suitable for professional traders who can make a minimum $10,000 deposit as capital. In addition, brokers usually offer additional benefits for VIP account holders, including a dedicated account manager, free analysis tools, gifts and bonuses.
You won't find a VIP account on Olymp Trade. That's a bit old-fashioned. We're more into Statuses 😉 Trading on a standard account, Olymp Trade users can grow from Starter to Expert and unlock limitless trading opportunities.
Now that we've gone over the types of Forex trading accounts, let's look into how to open a standard trading account with Olymp Trade.
Opening a trading account on Olymp Trade: Step-by-step guide
Opening a Forex trading account on Olymp Trade is easy, as it doesn’t involve the hassle of a complex procedure. Moreover, opening a free demo account and performing account verification is also straightforward.
In this section, we will guide you through opening a trading account on Olymp Trade.
First, visit the Olymp Trade website and find the Registration button on the top right of the screen. Once you click the button, it will expand and ask you to enter your email address and a password. After putting this information in, click “Register” below to complete the process.
You can also open a new account using your Facebook, Apple or Google account by clicking on the logo below the Register button.
The screen will then redirect you to a brief training exercise that includes:
- The price chart selected asset on your Forex trading account
- How forecasting works and its features
- Fixed time trades
- Setting an investment amount for trade
- Setting a timeframe
- Choosing a price movement
After completing registration and the tutorial, make sure to validate your account via email and/or phone number by clicking the buttons.
3️⃣ Account verification and payment method
Financial service regulators require brokers to verify the identity of their clients. This procedure must provide assurances that the trader is of legal age, is the beneficial owner of the Olymp Trade account and that the funds in the account have been obtained legally.
In order to pass Olymp Trade’s verification process, traders must provide an official form of identity, a method for depositing funds into an account, and information verifying the source of funds.
This personal data is protected from unauthorized use and is only required to meet the financial security requirements of the platform and its clients.
The verification process largely depends on the country in which the trader is located, or to be more precise, on the local legislation of any specific country. You can read more about Olymp Trade’s verification procedure in these KYC instructions.
Once you verify your account, you will be ready to invest and trade, including with real funds. There is a wide range of deposit methods available on Olymp Trade, including debit and credit cards, bank transfers, electronic payment systems, etc.
This image shows what the deposit option looks like 🔽
💸 Start trading
After the money is deposited, it will automatically be added to your Olymp Trade account. Now you can trade directly from the platform using your investment. Any profits or losses from trading will automatically be added to your trading balance, and you can withdraw your funds at any time.
There are several Forex trading accounts on Olymp Trade, and choosing one depends on your current objectives, trading skills and preferences. Whatever account you choose, demo or standard, it will take just a few minutes to open it.
Ready to open an account and start trading now? Go ahead!
Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.