If you are just starting out, learning to trade in the foreign exchange market can seem like a daunting task. However, it is not impossible either. Assuming you have already been demo trading, you need to narrow down your choice to one forex broker in this case Rakuten forex. After you have found the right broker, you are now ready to open to open an fx trading account in the following simple steps.
- First, select your account type
- Register the account
- Lastly, activate your account
However, before you open a live trading account and trade with tour hard-earned money, ensure that you open at least two or three demo accounts. There is no reason for you not to because demo accounts are free and worth you trying out and kicking the tires of a variety of brokers. This will help you get a feel for what’s right for you.
Step one: Choose to an account type
All things considered, when you are ready to open a Rakuten live forex trading account, you have to choose the type of account you want. Is it a personal or a business (corporate) account? In the past, you’d also be required to choose whether you wanted a micro account, a standard account or a mini account, when opening an fx trading account. At present, this is not much of an issue because most brokers will allow you to trade custom lots.
This is good for you if you are an inexperienced and new trader who only has a small account of capital. It also provides you with great flexibility because you won’t have to trade bigger than what your pocket is comfortable with. You should also know that there are brokers who have a “managed account” option in their application forms. This option is ideal for those traders who want a broker to trade their account on their behalf.
Step two: Registration
After you have chosen an account type, the next step is to have it registered. Therefore, you will have to submit paperwork in order to open a Rakuten fx trading account. However, you should note registration forms vary from broker to broker. Here are some of the requirements for registration:
- Phone number
- Account currency type
- Date of birth
- Tax ID or Social security number
- Country of citizenship
- Employment status
- Net worth
- Trading experience
- Financial questions
- Trading objectives
You are probably why they need all this information, well, the simple answer is both trader and broker need to comply with the law thus why these questions are necessary. Ensure that you inquire about all associated costs before registering. These may include the amount your bank charges for a bank wire transfer. Associated trading costs can be quite high thus taking up a significant chunk of your trading capital.
Step three: Activate your account
Once Ratuken brokers have received all your necessary paperwork, you will receive an email with instructions on how to complete your fx trading account activation. Upon successful activation, you will receive another email with your username, password and instructions on how to fund your trading account. Now all you are left with is to login to your fx account and start trading.
When trading with real money is involved emotions tend to get high and can be a dreadful moment for someone who is opening their first forex position. Despite how much a trader has practiced on a demo account, succeeding on the real money platform is an entirely different ball game. If it’s your first time opening a forex position, here are some of the common mistakes which can occur:
- Clicking on the wrong chart
- Using the wrong order
- Applying a wrong lot size to the trade
With this in mind, as you prepare to open your first forex position, remember that your first time should not be about winning or losing but a learning experience on its own.