How to Open a Trading Account

How to Open a Trading Account

When it comes to trading Forex or binary options, the easy part is actually filling out the application. It is preparatory work that precedes this that is more time consuming and cumbersome. There are so many binary option brokers out there these days, the choice is vast but finding the right broker is the most important step in the whole trading process.

Many traders look to friends and family for referrals regarding the best brokers. But just like when it comes to doctors, what is good for one person is not necessarily good for all people. And despite someone being profitable with one broker, this may not hold true for all traders. Let’s face it. All trading involves risk and binary options are riskier that many other investment instruments.

There is also a great deal of gambling in trading binaries and no matter how many indicators you use or how many positive positions were reached in the past, there is simply no way of knowing how a currency price is going to go and when. Certainly, experience is the best teacher and the more you trade, the more chance you have of coming out with a profitable trade. But statistics show that about 70% of binary option trades end in a loss of money and this is because most traders jump into the market blindly without the proper experience or knowledge.

Good Education is Vital

Education should start even before an account is opened with a broker. Traders should know what to look for in a broker and do a good comparison of the features each one offers. Once they have selected the broker that features what they need, registration to open a trading account can be done right online.

Binary options sites can be creative and unique; some use multi-media videos and most have running ticker tape figures gliding across the screen. Sometime it takes time to locate where the application is. Sometimes it appears right on the landing page. Other times, one has to click on a tab at the top of the page in order for the application form to appear. In either case, the new account form is never very long and filling it in online takes only minutes.

Notification of approval comes quickly. Then you have to decide how to fund your account. Although some binary option brokers don’t require any minimum deposit at all, most of them do. This can be anywhere from $10 to $10,000 depending on the broker and the type of account one wishes to open. Money can be transferred into the account in a variety of different ways but the most popular is via credit card or bank wire. Withdrawals are made in the same manner.

Once the account has been approved and funded there is nothing to stop the trader from placing a trade directly from his computer or any of the various mobile devices available today. Most brokers offer a mobile application to facilitate trading at all times from all places.

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Risk Disclaimer: will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade binary options or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.