What is an FX broker account?
An FX Broker account is simply an account where you can trade financial markets using an amount of money you transfer to the account. It allows you access to a market so you can make investment decisions and use a trading platform to analyse markets and place orders. A broker is much like a bank account, however the balance changes when you lose or make money.
Using a Platform
A platform is simply software that shows charts and allows you to electronically place orders directly to the broker. Lets say you look at a chart that moves up and down, you feel it will continue moving down (via you charts on your platform). You can press SELL and if the market moves down you will make money. You download the platform provided by your broker and log in using the details your broker give you after you register. Your money that you transfer to broker shows in the platform as Balance and/or Equity.
Let’s get into it, I bet you are excited to place your first trade!
The first steps in opening your FX broker account is filling in your personal details. They will need your name, date of birth, address and identification (like a drivers licence or birth certificate).
You will have the option of choosing MT4 or MT5. Choosing MT5 will give you access to more features and markets to trade. Algorithms by Global Finance Trading are written in MT5, so selecting MT5 opens up more opportunities for you.
Leverage is basically a term for borrowing to invest. When you place a trade with say $10, you are really trading for say 100 times that if your account has 1:100 leverage. In effect, you have control over a trade that has $1,000 from using $10 as margin against the trade.
It is possible to leverage an account up to 1:500 which is currently used for our trading accounts.
Keep in mind, you do not have to use all the money you have available to you in a trade, so manage your risk well. Having the buying power of 1:500 is very powerful and gives you an opportunity to buy or sell much more than normal if you need to. It also means you may have more breathing space for free margin if your margin is 5 times lower than normal. (Confusing I know, but basically 1:500 is amazing but dangerous if you are doing the wrong thing).
There will be a questionnaire you will need to complete that will test your knowledge of the markets the broker offers. I would encourage you to visit our Questionnaire Help page before and when you take this test to ensure your knowledge is up to scratch. If you are running algorithms or using a copy service, this is less important however still very important for you to have a general idea of what is going on with your money.
How To Log Into Your Account
Your account may take a day or two to be approved. Once approved, they will email you with your logins for both a broker Portal (where you can fund and withdraw from your account) and also a platform login (where you trade the markets). So you will login to a website for the portal, and the MT5 platform for your trading account.
How To Fund Your Account
Once your account is approved by the broker, which generally takes a day or two, you will receive access to a broker portal. A broker portal is basically a secure web page where you can log in and deposit or withdraw funds from your account. When you first open your account you will want to deposit funds. There are many funding options in the portal to choose from, everything from Credit Card, Paypal, bank transfer and more. Choose the option that suits you and send funds in. It may be instant or it could take a couple of days to appear as available funds.
Once You Are Set Up And Funded
Once this is all set up, you can then trade the financial markets, withdraw your profits to your own bank account. Investing real money into the markets helps you learn and grow as an investor and separates you from the people that simply talk about what should have happened. You are in there doing it and making money from your decisions. You have faith in what you know and are being paid for backing yourself.