To get started on the right foot in the currency market it is essential to find a good broker and open a currency trading account. Since there are so many brokers to choose from, this process may take some time. You should get several recommendations from other traders as to where you might begin. Take the time to find the right broker and the right size trading account for your level of experience and your available capital.
You may decide to open a micro account to begin with. Not all brokers offer this account so you will have to look around if this is how you will begin. Most will allow you to start with as little as $300.00. You will be using stop-loss orders as you trade. This size account will force you to risk a greater percentage of your trading capital. You will need to do this so you are not stopped out from minor moves in prices.
It is recommended that if you have the capital to do so, you begin with a mini account instead of a micro account. Mini accounts will start around $2000.00. You will be trading a higher unit size, which will make your trading profits more meaningful. You will also be able to set your stop-loss orders farther away so that small price fluctuations will not cause you to loss money.
If you have a larger amount of money to start with you can open a standard currency trading account. You will start these accounts around $5000.00 as a minimum and they can go as high as $50,000.00 or even higher. You will be trading in units of 100,000 with these accounts. If you are a novice trader you should only use this account if you can handle a higher level of capital loss.
Most brokers will allow you to start with a demo currency trading account. This is a practice account. It is a good idea to start in this way. You will get a feel of not only the mechanics of trading but you will also be able to polish your trading skills during this phase. Since there is no charge to use these accounts you should open several demo accounts with different brokers. You will not only get more practice you will be able to decide which trading platform you prefer to use. It will help you in making the ultimate decision of where to open your account.
Brokers make opening a currency trading account very easy. You will have to fill out an application online and submit it to the broker. After they receive and review the information you will receive an email message with your approval and instructions on how to activate your account. The last step is to deposit money in your account.
To put money into your trading account you can use a your credit card. There will be a place for you to type in your card number and funds will be available fairly quickly. You can use electronic checks to have funds transferred fairly quickly from your bank account. These funds are usually available the same day or the next business day. Sending a check through the mail is a third way to deposit funds. This is the slowest way, because the check will take several days to clear.
Before opening a currency trading account research several brokers to find the one the fits your personal style. You want to be able to spend your time making profits and not on worrying about the mechanics of your account.