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Opening a Forex Trading Account (FAQ)

Opening a Forex Trading Account (FAQ)These are some basic questions/answers regarding what matters the most when opening a new Forex trading account.


1) How do I start trading Forex?

It is highly recommended to start trading Forex by opening a free demo account. A demo account can help you gain experience without any risk of losing your funds. Every respectful Forex broker will provide you with a free demo account. After gaining some experience, you can trade for real money. When starting to trade for real money note that a micro-lot account is more suitable for beginners.

  • Demo/Practice accounts offer an excellent chance to gain experience and evaluate the conditions of every Forex Broker without any cost
  • A micro-lot account is the best option for beginners and semi-advanced Forex Traders as it allows trading in smaller order sizes


2) What is the minimum deposit to open a real Forex trading account?

The minimum deposit usually ranges from $10 to $500.

  • A simple trading account (dealing desk) starts as low as $10

  • A more advanced STP account starts as low as $100

  • An ECN account starts as low as $500

Some Forex brokers may also provide VIP accounts that usually require a minimum deposit of USD 10,000 or more. These accounts may offer some extra privileges, such as a personal account manager and exclusive market analysis from professional traders.


3) Which Forex broker is suitable for my needs?

Traders have different needs, and different needs create different choices. Here are see some examples:

(i) A professional day trader or a logarithmic trader needs an ECN Forex broker with tight spreads, low slippage, and fast order execution

(ii) A carry-trader or a position-trader needs a Forex broker offering a wide currency asset index and very competitive swap rates (overnight)

In both cases, all traders should choose among high-regulated Forex brokers offering a compensation scheme in case of insolvency.

» Basics of a Forex Trading Account


4) How do I Choose a Forex Broker?

These are the key questions to keep in mind when choosing Forex brokers:

  • Safety of Funds

(1) Is the Forex broker regulated by a trustable authority such as FCA UK, ASIC, or CySEC?

(2) Is the Forex broker headquartered in a safe country?

(3) Does the Forex broker operate for more than 3-4 years in the market?

(4) Is there a compensation scheme in case of insolvency?

  • Funding & Trading Options

(5) Are the available funding methods suitable to your needs (internet wallets, debit cards, etc.)?

(6) Are the available platforms suitable to your needs (WebTrader, MT4, MT5)?

(7) Is the available asset index suitable to your needs (Forex pairs, Metals, Indices, Crypto, etc.)?

  • Trading Cost & Other Fees

(8) What is the spread on liquid Forex assets such as EURUSD and GBPUSD?

(9) Are there any trading commissions?

(10) Are there any other fees? (for example, maintenance fees)

» Selecting a Forex Broker


5) What are the categories of trading fees when using the services of a Forex broker?

Trading Spreads & Commissions

Dealing-desk brokers charge only spreads, while ECN/STP Forex brokers charge spreads and trading commissions. There are also zero-spread accounts that charge only commissions.

  • The spread is the difference between the ask and bid and it is measured in pips
  • A pip means Percentage In Points and represents the 1/100th of 1%. For example, when the EUR/USD Ask/Bid is 1.1700/1.1701, then the difference is 1 pip (0.0001)
  • The trading commissions are based on your volume and should be measured on a full-round lot basis. Usually, Forex brokers charge between $6 and $10 per full traded standard lot ($100,000)

SWAP Charges for Maintaining Positions Overnight

Positions that are kept open overnight, become the subject of overnight (SWAP) rates. This can be positive or negative for your account's balance.

  • If you plan to maintain your positions open for more than one day then SWAP rates matter a lot

Other Fees

Other fees may include:

(i) Deposit / Withdrawal Fees, and

(ii) Maintenance / Inactive fees


6) What is a Forex Lot?

When you open a new Forex trading account you have to select the size of the lot you will be trading. Lot is the smallest size in currency trading and all Forex pairs are traded in units.

Explaining Standard, Mini, and Micro lot accounts

In Forex trading, a standard lot is the equivalent of 100,000 units of the base currency. A mini lot is the equivalent of 10,000 units, and a micro lot is the equivalent of 1,000 units of the base currency. That means that 1 lot on a micro account equals 1/100 of 1 lot on a standard account.

  • MICRO LOT: (1,000 units) -Suitable for Forex beginners
  • MINI LOT (10,000 units) -Suitable for more advanced traders
  • STANDARD LOT (100,000 units) -Suitable for Forex professionals


7) What documents do I need to open a real Forex trading account? 

Depending on the Forex Broker, the whole process of opening a real account may take from a couple of hours to a couple of days. You will need:

  • Proof of Identity (ID, Passport, or Driver's License)
  • A recent proof of address (utility bill)
  • A copy of your credit/debit card (if you plan to use one)



8) When does the Forex market open/close?

The forex market operates 24/5 from Monday to Friday and includes 3 trading sessions: the US Session, the Asian Session, and the London Session. Between each of these 3 sessions, there is a period when two sessions are opened simultaneously, this is called an overlap.

Forex Market Overlaps (GMT)

  • New York and London sessions overlap: 13:00 - 16:00 GMT
  • London and Tokyo sessions overlap: 08:00 - 09:00 GMT (2 hours in summer time and only 1 hour in winter)
  • Sydney and Tokyo sessions overlap: 00:00 - 06:00 GMT

These common trading hours are called session overlaps and are characterized by high volatility and volume. The Forex overlaps offer the perfect conditions for intraday trading.

» Forex Market Hours and Trading Sessions

9) What is a Forex Trading Platform?

A Forex trading platform is a combination of software and hardware used to trade the Forex market. Widely used platforms include MetaTrader4 (MT4), MetaTrader5 (MT5), JForex, and cTrader.

  • All the above Forex trading platforms are 100% free and can be used on a demo account

  • All the above-mentioned trading platforms provide the ability to trade both manually and automatically

  • Forex beginners can use a WebTrader for their first steps


10) Which are the major Forex trading orders?

The order types when trading the Forex market include:

1. GTC Order (Good Till Cancelled)

2. Market Order

3. Limit-Entry Order

4. Stop-Loss Order

5. Stop-Entry Order

6. Limit Order

7. OCO Order (One Cancels Other)

Market orders are very risky especially when the market liquidity is limited and trading spreads are high. Beginners should use limit orders that can pre-define the risk of each position.


11) Which are the most active currency pairs?

The most active and liquid Forex currency pairs are called the Forex majors and account for about 85% of the total Foreign Exchange market activity.

  • The Euro/Dollar Pair (EUR/USD)
  • The British Pound Sterling/US Dollar (GBP/USD)
  • The Dollar/Japanese Yen (USD/JPY)
  • The US Dollar/Swiss Franc (USD/CHF)
  • The US Dollar/Canadian Dollar (USD/CAD)
  • The Australian Dollar/US Dollar (AUD/USD)
  • The New Zealand Dollar/US Dollar (NZD/USD)


12) Comparing Forex Trading Accounts

This is some basic information to compare different Forex trading accounts.

Table: Compare Forex Trading Accounts



European Traders can open an account with IC Trading: » IC TRADING

ICMarkets is a regulated ECN Forex Broker based in Australia.

  • Online Since 2007
  • Licensed: FSA Seychelles
  • US Residents: No
  • EURUSD Spread: 0.0 Pip
  • Commissions: $7.0 / full-traded lot
  • 65+ Forex pairs, cryptocurrencies, plus several indices and commodities
  • Cryptocurrencies
  • Bonus on New Accounts: N/A
  • Min. Deposit: 200 USD
  • Methods: Cards | Wire | Skrill | Neteller
  • WebMoney
  • MetaTrader: MT4 | MT5 | cTrader
  • Auto-trading and Scalping: Allowed
  • Free VPS: YES
  • PAMM Accounts: NO



European Traders can open an account with IC Trading:



RoboForex is a good choice for day-traders

  • Online Since 2009
  • Licensed: FSC 000138/437
  • US Residents: No
  • EURUSD Spread: 1.3 Pip
  • Commissions: NO
  • 35+ Forex pairs plus several indices and commodities
  • Cryptocurrencies
  • Bonus on New Accounts: Cash Bonus
  • Min. Deposit: 10 USD
  • Methods: Cards | Wire | Skrill | Neteller
  • AdvCash | PerfectMoney
  • MetaTrader: MT4 | MT5 | cTrader
  • Auto-trading and Scalping: Allowed
  • Free VPS: YES
  • PAMM Accounts: Social Trading only







  • Online Since 2015
  • Licensed: NO
  • US Residents: No
  • EURUSD Spread: 1.1 Pip
  • Commissions: NO
  • 71 Forex Pairs, plus several indices and commodities
  • Bonus on New Accounts: 100% Cash Bonus
  • Min. Deposit: 10 USD
  • Methods: Cards | Wire | Skrill | Neteller
  • FasaPay | UPaid Card | UnionPay
  • MetaTrader: YES (MT4)
  • Auto-trading and Scalping: Allowed
  • Free VPS: NO
  • PAMM Accounts: YES



Opening a New Forex Trading Account FAQ

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