Open an account for trading in the Forex market
Forex accounts for trading in the Forex market are a popular way to become a participant in an intellectual exchange game. Opening an account in Forex is available for both individuals and legal entities. In order for your trading on Forex to be successful, it is important to choose the right account and know what opportunities it gives.
You can use different types of Forex accounts and various schemes of working with a brokerage firm to achieve the best result and develop your own effective trading strategy.
Dealing Desk is an internal trading platform for clients of a brokerage company. Bidders do not know the market quotes and are bidding against their broker, who acts as a market maker. This allows novice traders to learn a lot before entering the open market.
NDD (Non Dealing Desk)
NDD is trading without the participation of a brokerage company, an abbreviation for Non Dealing Desk. Customers are brought to the open market automatically. The trader himself regulates the possibility of the broker’s participation in the trading process. The minimum Forex account for working on this technology is an order of magnitude higher than for the cent, and is usually $ 500. Technology NDD is considered promising and is increasingly used.
PAM Accounts Forex
A Forex account can be managed by one trader representing the interests of several investors. This is called PAM technology. After the conclusion of the trader’s transactions, the profits or losses from them will be divided between the trader and investors in proportion to the size of their deposits. PAM is the abbreviation of the English term meaning «interest distribution management module». PAM-accounts Forex is a convenient way to participate in trading on the exchange, simply providing the management of your funds to an experienced trader, using his tried-and-tested trading strategies.
Islamic account on Forex
A number of Forex clients open an account on general terms do not allow religious beliefs. For them, there are Islamic accounts. Their difference from ordinary trading accounts is the lack of enrollment (write-off) for the next day of the amount for the transfer of an open trading position. Instead, a fixed commission is established, which is charged once a week, which occurs on the night from Wednesday to Thursday. All other trading conditions for Islamic accounts are the same as for ordinary accounts.
Demo account and live account for trading
If you have never traded on the stock exchange and have little idea of this process, the Forex demo account will help you. It is used by traders with experience. This is a kind of draft for your future currency operations. Such a school account is opened for free. Here you can learn the basics of trading, test a new strategy, evaluate the work of a broker. Having opened a no-deposit account in Forex, you do not risk anything at all, you only need time and desire to understand the details. After the first acquaintance with the market with the help of a demo account, it makes sense to make a deposit and open a real forex trading account.
Opening an account for an individual and a legal entity: terms and conditions
A real Forex account allows you to withdraw money to bank accounts of individuals and legal entities. To open it, you need to go through a simple registration process, after which the trader will have access to his virtual office.
To open an account for a legal entity, you must provide the personal data of the account manager and electronic copies of the following documents:
- constituent documents;
- certificate of registration of a legal entity;
- confirmation of the head of the company;
- a bank card with samples of signatures of authorized persons and an imprint of the press;
- power of attorney for authorized persons.
All documents must be translated into English with a notarized translation.
From individuals, when opening an account, electronic copies of the following documents are required:
- Internal passport — two spreads — with personal data and a stamp on registration.
OPINION OF THE EDITORIAL
As follows from the material, there are enough accounts to work on the international currency market Forex, and a number of them essentially differ only in names, being in reality twin brothers (such as PAMM-accounts and MAMM-accounts). And the choice will have to be made first of simple tools of trade, gradually, as the set of experience and knowledge, moving to the complex. Experienced traders use several accounts at once, on various Internet sites, but all of them also once began with the opening of demo accounts, reading of simple literature and attending seminars.