How to Open A Trading Account

This learn tutorial will show traders how to set up their account so that they can start to trade xauusd. Before signing up a account there are different factors that traders should consider before taking this step.

To open a trading 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 trading market and the profits & losses that they make when trading will be trading accounted for in this account.

A trader will need to consider the following factors when registering a trading account:

Regulation of Online 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 also can 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 trade transactions with.

Stop Out Level

This is where a broker will close all the trades of a xauusd trader if the traders makes losses beyond a specified level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a xauusd trader's transaction getting closed. However, there are brokers who are not very straight and these brokers will set the stop out at 100 percentage% & 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 %.

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