Forex market is now easily accessible to anyone on the internet. Any average person can trade in different foreign exchange market from the comfort of his home.

If you are interested in trading currencies, its important that you first find an online Forex broker. It is always recommended that you start with a demo account and experiment it with different demo accounts from different online Forex brokers. If any broker is offering a free sign up bonus or similar, he should be your first preference. You can easily find one on the internet.

While signing up for a forex trading account, a broker will most likely require the following information.

• Your name

• Your full address

• Your Email address

• Date of birth

• Phone number

• Your chosen account currency type

• Your chosen password

• Your country of citizenship

• Your social security number or tax ID

• Your employment status

• Your annual income and net worth

• Your previous experience (if any) in trading and your objectives

A broker will need most of this information because there are different set of laws and regulations in each country. And all this information will be required to verify your identity. Regulations have been introduced so that the account holders are protected from any kind of harm and also because the Forex industry has become retail.

You should always do a thorough research on the broker with whom you are going to open an online account. Most of the brokers will ask for all this information mentioned above. If anyone is opening a Forex trading account for you without all this information, you should be suspicious and a little weary. You can search for the status of your broker through the National Futures Association (NFA).

Risk disclosures will be mentioned to you in the final steps of opening your Forex trading account. Brokers will keep you informed of all the risks of Forex trading so that you comply with the laws. It is very necessary that you understand all the risks associated with trading currencies. In Forex market, you will find a lot more number of losers than winners, so you should always plan your financial activities carefully.

After you have given all the information, the online Forex broker will verify all your information and keep a follow up with you. You should be always available with the supporting documents. Once all the formalities are complete, brokers will provide a speedy sign up process and they have an incentive to be efficient, since you will be providing them with business. Once you get your forex trading account activated, you will be able to fund it with your currency.

This entry was posted on Monday, March 5th, 2012 at 3:44 pm and is filed under Forex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.