How to Open A Account
This learn tutorial will show traders how to set up their account so that they can start to trade xauusd. Before opening a account there are various factors that traders should consider before taking this step.
To open a account, traders need to find an online broker and then they can setup their trading account with the broker that they choose. Once a trader opens this account the trader will then use it to place trades in online market and the profits & losses that they make when trading will be accounted for in this account.
A trader will need to consider the following factors when opening a account:
Regulation of Broker
Before opening a account traders must first know that they should only select to trade with a regulated broker. In there are hundreds of brokers, some are regulated & other which are not. A trader must do due diligence when selecting a online broker & check the regulation license details of the broker they want to trade with. Remember some brokers that are not regulated will write an tutorial on their website about xauusd regulation and link to this article - if a trader is not careful they will be tricked into thinking that the broker is regulated, make sure to check the license details of the broker and you can also confirm these details with the regulatory authority regulating the broker.
Gold Leverage
Traders should consider the leverage offered by the broker when it comes to opening & accounts. With leverage a trader controls a large amount of capital while using little of their capital. Leverage is one of the reasons why a xauusd is very popular because traders can make a lot of profit from xauusd using little of their money.
A trader should therefore consider the leverage given by a broker some brokers give 100:1 & others as high as 400:1, with leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have and therefore the trader using this leverage will control $400,000 which they can use to open trades with.
Stop Out Level
This is where a broker will close all the trades of a trader if the traders make losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a trader’s transaction getting closed. However, there are brokers who are not very straight and these brokers will set the stop out at 100 % & with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a online broker setting the stop out at 20 %.
