Step 1: Register with a regulated forex broker
The first step in trading forex is to register with a regulated forex broker and log on to your personal area on the broker’s website.
During registration, your broker will ask you to choose an account currency (base currency) in which your wallet will be opened. Your wallet is where your funds will be warehoused when you make a deposit.
For instance, if you choose a USD account currency, any non-USD deposits you make will have to be converted into USD at a currency conversion fee.
After your wallet has been created successfully, you can then open a live trading account for real trading, or a demo account for experimenting with fake cash.
Step 2: Create a live trading account
To create a live account, you need to submit self-identifying documents & proof of residence by snapping them with your phone & uploading through your personal area on the broker’s website or mobile app.
For live trading accounts, some brokers offer accounts with different pricing/ fee structures. Some will require you to pay only spread, while others may require you to pay a combination of lower spread plus a flat commission per trade.
Step 3: Fund your wallet
Most brokers specify a minimum deposit that you can fund your wallet with. The minimum deposits may differ for different funding methods.
For example, if a minimum deposit is $100, the system will reject any deposit below $100. The fastest funding methods are usually through local bank transfer, and they reflect in your wallet immediately.
After you have funded your wallet, you can move the funds into your trading account & yes, you can open more than one live trading account.
Step 4: Place your first trade
To place your first trade, you can either enter the market by clicking on the buy button or by clicking on the sell button.
When you click on buy, it means you expect the exchange rate will rise & to exit the market with your profits, you must perform an opposite sell transaction.
When you click on sell it means you expect rates to fall so to exit the market with your profit you must perform an opposite buy transaction.
Either way you choose to enter the market, you can exit with a profit but if the rates don’t change as planned you will end up with a loss.
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