So, you’ve demo-traded to death, and you feel like you have finally got the hang of it. Maybe it’s time to put some real money on the line and start profiting? Welcome to the market. But that begs the question: which broker would you use? You should demo trade on several platforms to find the best one that fits your needs, to start.
After you have chosen the right broker, here’s what you have to do: first, register your account, second, activate your account, and then – start? Well, how about demo trading on this particular platform for a little while? Why not? Keep in mind that you will have all the time in the world, since the market is 24/5, to actually trade your hard-earned money. There’s no reason to not get the “feel” first before you jump in.
Choosing An Account:
When it’s time for a live account, you have to make a couple of decisions: are you going to be trading from a personal account or from a business account?
In earlier times, you would have to choose whether you are opening a standard account, a “mini” account, or a “macro” account. Thanks to modern times where brokers allow you to trade custom lots, this isn’t really an issue. This is also ideal for those with not that much money in their account, who want to choose exactly how much they are willing to risk. For new traders, this can be extremely comforting.
One last piece of advice: make sure to read the fine print. Unfortunately, just like any sector or industry, you want to make sure that no one is taking advantage of you.
You can actually have a “managed account” where the broker actually trades FOR you, but of course, this isn’t for everybody. It also means that you have to deposit a large sum of money, which might be too much for some to be comfortable with. This amount is usually at least $25,000. Keep in mind that the manager will also need to be paid, and will be taking a cut of your profits. For those who are wealthy, and don’t have time to trade themselves, this might be ideal – but for the most part, think long and hard before you choose to have a managed account.
Of course, make sure that you open a forex account, and don’t accidentally choose to open a options or futures account.
Registration requires paperwork, and this paperwork varies depending on the broker that you have chosen. It’s also important to get familiar with all of the associated fees with the platform. This way, you don’t have to be surprised at the cost of a bank wire transfer, for example, which might cost more than you think. If you mentally prepare and understand all of the fees that are associated with the account, it will be less of a surprise/headache.
Taken care of all the paperwork? Then you should finally receive confirmation that your account is live and ready! It’s finally time! You will receive your username, password, and instructions on how to fund your account.
Like we said – before you start trading your own money, why not try out a demo account first?
Open a Demo Forex Trading Account
One thing that is important when it comes to trading is your emotions. Your ego might be telling you that it isn’t the “cool” thing to do, or you might be ashamed by not taking an actual risk. These are not the emotions to have. You know the old adage that “practice makes perfect”? Why not be the best trader that you can be, and improve by practicing?
Of course, sometimes, it’s time. If you have been demo trading with dedication for months at a time, and truly feel that you are ready – perhaps it’s time to take the leap. However, we can’t stress enough that demo trading can truly help you build up your intuition and skillset that might save you lots of money down the road.
Real money trading account
Ultimately, real money is real money, and there is no real replacing the fact that you have REAL money on the line. So, this isn’t to say that demo trading is the same as live trading, but that it certainly can help you prepare. Ultimately, however, with real money on the line, you will be able to develop strategies with regards to risk management that could actually affect your account, so it is certainly a whole different level altogether, and this should be recognized. Do not demo trade thinking that it will be the exact same as live trading – that is the equivalent of playfighting with a friend, and then thinking that you can step in the ring with an actual professional boxer.