How to Open a Forex Account in 5 Minutes - Step by Step Procedure
To Open a Live Forex Account you can go to an online Forex broker website and OPEN AN ACCOUNT. Once you go to the Forex broker of your choice and select this option of opening an account, you will then have to fill some online forms - the step by step process of filling these forms is explained in this article. If you fill the forms correctly and follow the account opening procedure explained below you can have your account opened within 5 minutes.
With this online trading account you can trade the following: Forex, Gold, Silver, Oil, CFDs, Futures and Stock Indices.
Step by Step Procedure of How to Open an Online Forex Trading Account
To open this live trading Forex account, a trader has to fill some online forms provided by a Forex broker. The account opening online form can be obtained from your online currency broker.
The process of opening a real Forex trading account is one where your broker will also require you to upload the following accompanying documents:
What Documents Are Needed To Open An Online Forex Trading Account
1. Proof of ID - Color copy of ID card or Passport - A color copy of valid passport or other official identification document issued by authorities (e.g. driver's license, identity card, etc). The identification document must contain the client's full name, an issue or expiry date, the client's place and date of birth or tax identification number and the client's signature.
2. Proof of Residence - Color copy of utility bill - A recent utility bill (e.g. electricity, gas, water, phone, oil, Internet and/or cable TV connection, bank account statement) dated within the last 6 months and confirming your registered address (physical residential address not post office address).
You can use your mobile phone to take pictures of these documents and upload them directly from your phone(this is the best option). Alternatively use your digital camera, upload the pictures to your computer then upload the saved documents to your account
To Find where to upload these documents look for the option "Upload Documents" - this option will be provided on your account. Please note after opening your account it will not get validated until you have completed uploading these supporting documents.
Please note if you do not upload the above documents your account will not be validated - Make sure you upload the above documents to get your account validated. More than 50% of all new traders do not succeed in opening their Forex account because they fail to upload the required accompanying documents. If you correctly upload all the required documents then your account will be validated and you can start trading with your account within 5 minutes. Just take a color picture of these two documents with your smart phone and upload these directly to your Forex broker website using your mobile phone browser.
Where To Upload Documents on The Forex Account
Once you have filled the account opening forms that your broker will have provided you with, you will get access to the your trader cabinet: This will now be your Forex account.
The "Upload Documents" Button can then be accessed from within this trader cabinet and as a trader you can upload your documents using this button.
Once you complete uploading the correct documents on the "Account Verification" on your account will reflect as Validated and you can then start trading on this account.
This process may seem simple but more than 50% of all new traders do not succeed in opening their Forex account because they fail to upload the required accompanying documents.
Why is a Copy of ID and Utility Bill with My Name Required?
These documents are required by your Forex broker to safeguard against money laundering. AML, or Anti Money Laundering Regulations require that all brokers ask proof of ID and Residence with your name so as to verify that you are a citizen of the country you claim you are from as well as a Utility Bill that shows your exact location where you reside, that way you cannot come up with some fake identity or fake residence to use for money laundering.
All regulated Forex brokers must comply with this requirement before opening a trading account for a new client.
Once your online currency broker receives these online account opening application forms plus the above documents, your application will be processed and you will be assigned a login number and a password for the live Forex trading account.
Once your uploaded documents are approved by your broker - your account will then be validated. Your login details will be sent to your email address.
This is KYC - Know Your Client, its more of a legal requirement than a mere formality, your broker must follow this policy and try to do everything to know who their client is, in order to safeguard against any money laundering activity.
You can then use your details to log into your MetaTrader 4 platform and start trading on this validated account. You can also use the same login details to login to your trader cabinet on the Forex broker website. On the trader cabinet you can deposit money, withdraw money and view trading reports of your Forex broker account.
The FX account trader cabinet is a client area where once a trader opens a live account, then they can login to this trader cabinet and do the following operations; deposit money, withdraw money, generate trade reports, upload documents and get to view the balance of their trading transactions.