To open a forex trading platform account in Pakistan needs few pieces of the required information. But before creating a forex trading account, you need to know about forex trading.
Forex trading is the process of buying and selling different currencies to potentially make some profit. In forex trading, currencies are traded in pairs like EURUSD, GBPUSD, USDJPY, USDCAD, and many others.
Then comes the step to select the right broker. Hence it is recommended for new traders to research the legal position and reputation of a broker before opening an account. Some well-known forex trading brokerages in Pakistan are:
- XM group
- Ava trade
- FBS
- Instaforex
- HotForex
- OctaFx
Procedure to open an account
Opening a forex trading account is very easy and straightforward due to modern technology. However, traders must know several things to get started. While opening an account, one has to provide some information regarding his knowledge and trading experience. Moreover, one has to provide his identity and also needs to invest his funds.
It also varies from one brokerage to another to involve the exact steps to open a trading account, but typically the procedure for creating an account involves the following:
- Enter into the brokerage application or website to view its account types. This can include small accounts with low scale designed for traders who are beginners and are not well experienced, and well-featured accounts are for well experienced and active traders.
- After selecting your account type, now you need to fill the form application.
- After completing the application form, you need to register with your username/email and password to get access to your account.
- Then you need to verify your identity and address. You can do this by submitting a passport or national id along with a bank statement or utility bill.
- Log in to your account from the broker’s client portal.
- Now you need to deposit your funds into your account through your credit or debit card, check, or an electronic transfer from your bank account.
- The broker allows you to start your forex trading once you fund your account. Before trading on your actual funds, some brokers offer demo accounts to allow their clients to practice before trading with their real funds.
Demo and live account
When new traders get into forex trading, they come up with the question of what a demo account is and what a live account means. In the beginning, they invest their hard earnings in forex trading by expecting huge profits. Still, they realize very soon that starting on a real account is not a good idea, so they decide to go with demo accounts after learning the trading strategies from a demo account of any broker. Then they can shift to a live trading account where they trade actually with the forex market. It is recommended that the new traders who want to get into forex trading should go with a demo account to feel the market. Let’s discuss some differences between a demo account and a live account.
- A demo account allows traders to trade with virtual money provided by the company to mimic live forex prices. It provides traders with a risk-free environment by practicing trading beforehand and determining the risks involved in trading.
- Live account is for well-experienced traders who can tackle risks and place profitable and accurate trades. Your trades are executed with your real money in this account, and profit or losses will be real. In live account trading, clients feel that their trades are being placed late.
How to open a live account?
A live account is opened by an individual who wants to trade under a brokerage company that implies a deposit for trading at the Forex market in Pakistan. To open a live account, the trader has to deposit funds that further used in selling or buying trades in the Forex market of Pakistan
Forex trading account registration only takes a few minutes and allows you to conduct trading operations in the forex market. After registration, you will receive the welcome bonus amounting to 30% of the money you have deposited to your forex account. You can use the bonus to trade financial instruments or invest in Forex projects.
It needs to fill an application online to secure and process it in a short period. It might happen that, in some cases, the account is either approved or denied.
The information required is mostly filled into a personal form of data, including your name, country, contact information, and tax id number.
The risk of loss is considered both by the trader and the broker because currency trading is conducted on margins. That is why the brokerage is unsure about one’s financial condition to have enough balance to recover his losses in case of unexpected losses.
Choose the right broker
Traders need a broker to trade in forex markets. So, there are some factors that one has to confirm before getting into trading forex with any broker.
- It is recommended that traders research the broker’s reputation before opening a forex trading account with any brokerage.
- Traders need to check the regulatory history to confirm whether the broker has any irregular practices or any unfair history. Most brokerages can get access to the forex trading market, but they are not all the same.
- Before you fund your account for trading, you must ensure that the broker is licensed, regulated, and has good legal standing in the forex market.
- You also need to research the services a broker is offering before you open an account. Some are basic and plain brokerages, and others may be offered a fair trading platform with resources to analyze the best strategies that can help you to make better trading decisions.
- Being a trader, you must compare fees and commissions charged by a broker for their services. They charge for trades through bid-ask spread that is a small percentage of profit in that current buying and selling currency pairs in the market. Some brokerages have different types of commissions for the services they provide. Considering these additional costs charged by brokers is also important to determine the whole profit of trading forex.
All you need to open a live account
The trader has to accept the terms and conditions of the Public Offer Agreement. The acceptance of the agreement is not for the binding process as it is legally valid, just like a standard paper contract.
Then, the trader has to fill a special registration for that is not time-consuming. After adding the requirements in the form, you will receive further information through provided email:
- Your Login ID usually the trading account number and the trader password, which is required to get access to the client’s cabin. This information is also needed for performing several operations at the trading platform.
- Your mobile password or keyword provided is used to contact Forex trading brokerages’ specialists from the technical support of the Dealer sector.
- Also, the PIN code inserted is confirmed via email that is used to confirm withdrawal requests.
Right after depositing money into your forex trading account for the first time, you will get access to make deals on the Forex trade market. It is essential to deposit the money within 30 days after registration for a live account. The size of the minimum deposit is $1 for some brokers.
At last, you can set up a trading terminal according to your feasibility. It could be your PC, tablet, or smartphone. Now you can start real or live trading!
Bottom Line
Trading in forex in the forex market is quite easy. Still, one must be familiar with forex trading because without knowing about the real algorithm of forex trading, one can face typical losses.
To achieve financial goals, one has to beware of forex trading and should have good analytical skills and trading strategy, and it comes only by knowing the basics.
Choosing the right broker in forex trading also helps the trader to achieve potential profit. One must beware of the broker whether it is regulated, licensed, and holds a fair position in the market.