Question: How to Open a Forex Trading Account?
Question: How to Open a Forex Trading Account?
Answer
That's it, you've taken the plunge: you're getting into online trading. First step: open an account to trade. If, technically, nothing is simpler, here are some tips to follow to know where and how to open a trading account.
What is a Trading Account?
A trading account is simply an account in which you will place the capital you wish to invest in the stock markets.
It is in your trading account that you will take money to buy financial assets and that you will invest the money from your earnings. It is quite similar to a bank account.
To open a trading account , you must be able to provide a valid identity document as well as a proof of residence dating from less than 3 months.
Where to Open a Beginner Trader or Pro Trader Account?
In the same way that you have to choose a bank to open a bank account, here you have to choose the stock broker with whom you are going to open a trading account.
The most important thing is to choose a broker regulated by the AMF or the FCA. It is a guarantee of reliability, scams being numerous with online trading. You can also check that your broker is not on the AMF's blacklist of Forex brokers and that it is listed on the Regafi website as an organization authorized to offer its services in France.
Other criteria must then be taken into consideration, in particular:
Security of funds,
The proposed trading platform,
The competitiveness of the broker,
authorized trading styles,
The choice of leverage,
Supported financial markets,
Customer support in French,
stock market training,
A demo trading account.
Why Open a Demo Trading Account?
The possibility of opening a demo trading account, or virtual trading account, is one of the criteria to be taken into account when choosing your broker.
Indeed, a demo account will allow you to trade under real market conditions but with fictitious capital, so without taking any risk.
The demo trading account is a must for novice traders as part of their training on the stock market, but also for experienced traders who can test new strategies or try out other trading styles without updating. hurt their capital.
Can I Create an Offshore Trading Account?
While most retail traders residing in France open their trading account there and declare their income in France as well, others prefer to create a trading account with an offshore company.
If the argument of discretion is put forward, the main raison d'être of an offshore trading account is tax-related. Traders declaring their income from trading through an offshore company benefit from more attractive tax conditions.
If this practice is not prohibited, be careful however to respect the specific legislation for offshore companies so as not to find yourself in an illegal situation.
Open Trading Account - Conclusion
Now you know how to open a trading account. So don't wait any longer and enjoy your new activity. Happy trading!