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New Account FAQ

After choosing the right Forex Broker -Here are some questions/answers about how to open a Forex account.

(1) How do I start when opening a Forex account?

It is recommended that you start by opening a demo trading account. A demo account can help you gain experience without any cost. All online Forex brokers provide a demo account nowadays.

After practicing a lot, you will be ready to trade for real money, you can open a micro-lot account that is suitable for beginners.

(2) How do I open a Forex trading account and trade for real money?

Depending on the Forex Broker the whole procedure of opening a real Forex account may take from 10 minutes to a couple of days.

You will need:

-Proof of Identity

-A recent proof of address

-A copy of your credit/debit card (if you use one)

(3) What is the minimum deposit required to open a Forex trading account?

The minimum deposit may be from $10 to $2,000 USD. Some Forex brokers provide Executive VIP accounts that are beneficial in terms of low spreads. Executive Forex accounts usually require a minimum deposit of $20,000 USD or more.

(4) How does online Forex operate?

In the Forex market, currencies are quoted and traded in currency pairs. That means that when you buy a currency you sell another at the same time. You can go short or long on any currency pair.

(5) Which are the most active currency pairs?

The most active currencies are called the majors and they trade about 85% of the total global Forex activity. The most-traded currencies in the Foreign Exchange market are EUR, USD, JPY, GBP, CHF, CAD, and AUD. The major currency pairs include EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD, and NZDUSD.

Check the statistics of popular pairs at CurrenciesFx.com

»EUR/USD

»GBP/USD

»USD/JPY

»USD/CAD

»AUD/USD

»NZD/USD

(6) What is the charge of using the services of a Forex broker?

Here are the charges when using a Forex Broker:

■ Trading Spreads

The spread is the difference between the ask and bid and it is measured in pips. There are also zero-spread accounts that charge only commissions.

■ Trading Commissions

ECN/STP brokers offer tighter trading spreads by charging commissions.

■ SWAP Charges for Maintaining Positions Overnight (All Brokers)

if you maintain your positions overnight you pay or get paid a SWAP charge. That is a particularly important fee for swing and positional traders.

■ Other Fees (Not all Forex Brokers)

Other fees include: (i) Deposit / Withdrawal Fees, and (ii) Maintenance / Inactive fess.

(7) How is a pip spread measured?

A pip is the Forex slang for Percentage In Points. A pip is 1/100th of 1%. For example, when the EUR/USD Ask/Bid is 1.2700/1.2701, then the difference is 1 pip (0.0001). » Check average pips per currency pair

(8) What is the difference between Forex Online Trading, Fx Trading, Currency Online Trading, and Foreign Exchange Online Trading?

There is no difference between all the above-mentioned trading Forex terms.

(9) What is a Forex Platform?

A Forex platform is the combination of software and hardware used to trade the Forex market. Widely used platforms include MetaTrader4 (MT4), MetaTrader5 (MT5), JForex, and Zulu Trade. All the above-mentioned trading platforms provide the ability to trade both manually and automatically. All the above Forex trading platforms are 100% free.

(10) Which are the major Forex trading orders?

The basic order types in 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)

(11) What is a Forex LOT?

Lot is the smallest size in currency trading. Forex currency pairs are usually traded in units: 1,000 (micro lots) | 10,000 unit (mini lots) | 100,000 (standard lots