How to open a trading account to work in financial markets

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Contents

Financial trading explained

Financial trading is no different to any other form of trading: it is about buying and selling assets in the hope of making a profit. Here we discuss the key concepts, participants and markets involved in financial trading.

What is financial trading?

Financial trading is the buying and selling of financial assets. It is carried out in one of two ways: via an exchange or over the counter (OTC). An exchange is a highly-organised marketplace where you can trade a specific type of instrument. For example, you can trade US shares on the New York Stock Exchange (NYSE). When you trade over the counter, the trade is made directly between two parties. For example, buying a CFD contract from a trading broker such as IG.

What is traded in financial trading?

Financial instruments such as shares, forex or bonds, or derivatives such as CFDs, futures or options can be traded. Whatever the instrument being traded, the intended outcome is always the same: to make a profit. If you buy an instrument at a low price and sell it at a higher price, you make a profit. If you sell an instrument for less than you bought it, you’ll make a loss.

Who trades?

In financial markets, millions of companies, individuals, institutions and even governments are all trading at the same time. But what is a trader? A trader is defined as a person who buys and sells financial instruments with the aim of making a profit.

Some traders stick to a particular instrument or asset class, while others have more diverse portfolios. Some do lots of research before placing a trade, while others read charts and watch out for trends. But trades all have one thing in common – they all carry risk. Risk is a key concept to all types of financial trading. No matter what instrument is being traded, who’s trading it or where the trade takes place, balancing potential profit against risk is key to a successful trading strategy.

Which markets can be traded?

There are thousands of different financial markets to be traded, including shares, indices, cryptocurrencies and forex. IG offers more than 16,000 markets to trade, including more than 12,000 shares, 90 currency pairs and 30 indices.

Trading vs investing: what’s the difference?

The difference between trading and investing lies in the means of making a profit and whether you take ownership of the asset. Traders attempt to profit from buying low and selling high (going long) or selling high and buying low (going short), usually over the short or medium term. Investors will also attempt to profit from buying shares at a low price and selling high, but over a longer term. They may also aim to earn income in the form of a dividend.

A popular method of trading includes CFD trading, while investors can trade ETFs. When you trade derivatives, you do not own the physical asset, but when you deal in shares, you own them.

Trading Investing
Gain exposure to the full value of your position with only a small deposit Put up the full value of the investment
Speculate on short and medium-term price movements Speculate on short, medium and long-term price moves
Take a position on a fall or rise in value Profit only when your investment rises in value
Trade via an exchange or over the counter (CFDs) ETFs, stocks, futures and options are traded on exchanges; bullion requires a specialist

How to get started with financial trading

Open an account

Create a CFD account in minutes. Once we’ve verified your identity, add funds using your debit card, PayPal or via bank transfer. If you’d like to try your hand at trading in a risk-free environment, you can open a demo account.

Find an opportunity

Browse over 16,000 markets and make use of our extensive range of tools and resources to find your first trade. Then, choose which market you want to trade based on your experience and risk appetite. All trading involves risk, especially if you’re trading using leverage, which is why you need a risk management strategy to protect against unnecessary losses.

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Open and monitor your first trade on a range of devices

Once you’ve completed these steps, it’s time to enter the market. When you trade with CFDs, you can speculate on both rising and falling markets. If you think the price will rise, you would open a position to ‘buy’, and if you think the price will decline, you open a position to ‘sell’. Your trading decision should be based on your analysis of the market and your trading strategy. You can trade on a variety of platforms, including PC, Android, Apple iPad and more. You can also utilise our powerful charts to spot trades and stay ahead of the curve.

Financial trading in summary

We’ve summarised a few key points to remember on financial trading below.

  • Financial trading is about buying and selling assets in the hope of making aprofit
  • You can trade cash instruments such as forex and shares or derivatives such as CFDs and options
  • Financial trading is carried out via an exchange or over the counter
  • Companies, individuals, institutions and even governments trade
  • A market that moves a lot is known as a volatile market
  • IG offers more than 16,000 markets to trade, including shares, indices, cryptocurrencies and forex
  • The difference between trading and investing lies in the means of making a profit and whether you take ownership of the asset
  • To get started with financial trading, you simply have to open an account, research your market, find an opportunity and then open and monitor your first trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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Opening a Trading Account

How do I open an account with FOREX.com?

You can apply for an account with FOREX.com online. Start your application now.

What information do I need when opening an account?

You will be asked to provide information such as your name, address, date of birth, and tax ID number to help us verify your identity. We will attempt to verify your identity instantly, but if we cannot, we will reach out to you to request further supporting information or documentation. For more information, see our Account Documents FAQs.

Why do I need to provide my financial information?

FOREX.com’s Customer Due Diligence (‘CDD’) program requires that we verify the source of our clients’ funds. This is fundamental in complying with anti-money laundering laws and managing fraud risks. Therefore, we may request you to provide a bank statement or card account statement.

How much money do I need to open an account?

The minimum initial deposit required is at least 100 of your selected base currency. However, we recommend you deposit at least 1,000 to allow you more flexibility and better risk management when trading your account.

How do I know if my account has been opened?

We will email you as soon as your application has been approved. Alternatively, you can always log in to MyAccount to check on the status of your account application.

What types of documents do you accept for identity verification?

Acceptable documents for identity verification include but are not limited to:

  • Valid, current passports (national or international)
  • Valid, current driver’s license
  • Valid, current national ID Card

Other types of ID may be acceptable on a case-by-case basis after review. Birth certificates, marriage licenses and insurance cards are not accepted. In accordance with our regulatory obligations, additional documentation may be required at any time for internal periodical reviews.

What types of documents do you accept as address verification?

Proof of residence must show your name and address as indicated on the application.

Acceptable forms of proof of residence include but are not limited to:

  • Utility bill
  • Bank, building society, credit or debit card statement
  • Council tax bill
  • Local government address registration certificates
  • Valid driving license if issued within the last six months

Utility bills and statements must be dated within the last six months. Confidential information such as account numbers may be removed at your discretion. In accordance with our regulatory obligations, additional documentation may be required at any time for internal periodical reviews.

My proof of identification also has my address on it. Can I use it for both ID and proof of residence?

Yes, if your proof of identification document has your address on it, it can usually be used for both address and identity verification. However, please be aware that there are exceptions when we do need to request two separate forms of identity.

How can I send my documentation to FOREX.com?

The fastest way to provide us with supporting documentation is via MyAccount. Simply log in and follow the instructions to upload your documents.

You can also email or mail us your documentation:

Mail:

FOREX.com
135 US Highway 202/206
Bedminster, New Jersey, 07921

My documents are not in English. Will this be a problem?

FOREX.com has staff available to translate documents from many languages.

Whose name and address should be on the confirmation documents for a corporate account application?

The address verification document for a corporate account application should display the entity’s name and primary business address.

What are Articles of Incorporation in regards to a corporate account?

Articles of Incorporation state the purpose for which the company was formed, indicate the members of the company, and sets forth its purpose according to the laws of the state in which it is established. These documents are sometimes referred to as Articles of Association and Memorandum of Association and should also include a breakdown of the shares of the company. If any shareholder owns more than 10% of the company, we will require ID verification for that shareholder.

How can I provide the breakdown of shares/Share Registry for my corporate account?

The corporate breakdown of shares or Share Registry should be within the official Articles of Incorporation. If the details are not within the corporate documentation, please contact FOREX.com at your earliest convenience.

What is a Certification of Incorporation in regards to a corporate account?

A Certificate of Incorporation is a statement which confirms that a new company has fulfilled the necessary legal requirements for incorporation and is duly incorporated according to the local government or other regulatory agency.

For a joint account, do I need documentation for both account holders?

Yes, both account holders must provide a government-issued photo ID when we aren’t able to electronically verify their ID. Documentation for proof of address also must be verified for both applicants.

Open a Forex trading account

Have you decided to try yourself on Forex market? Perhaps, Digital contracts?
Open a real trading account and join over 250 000 traders!

Trading accounts for real trade with a standard lot size or cent accounts with a micro-lot. Depending on a type, it is possible to open a trading account in one of the following currencies: EUR,USD,RUR,UAH. They are suitable for the experienced traders who want to trade with a currency different from the US dollar.

Accounts for Digital contracts trade in the currencies: EUR,USD,RUR,UAH. Trading Digital contracts allows earning up to 100% of the invested amount. You only need to make a forecast and determine the asset price direction – up or down. Minimum investment – 1 USD, minimum expiration – 60 seconds.

Open a free demo-account and make the
first step towards earning on financial markets.
It is the perfect opportunity to try yourself in trading on Forex market or Digital contracts without any financial risks. Trading on a demo-account is technically identical to real trade.

Why World Forex?

On the market since 2007!

For more than 10 years of providing financial services of a high quality to our clients, we have established a company with a spotless reputation in the sphere of the provided services.

International financial license

Possession of a financial license is an essential stage of the company’s development, due to which we have reached transparency in the sphere of the provided services to our clients, whose number already amounts 250 000.

Convenience and comfort

Replenishing accounts without any commission and effectiveness of financial operations processing are achieved due to work with over 15 leading electronic payment systems. Funds withdrawal occurs within 30 minutes from the moment of submitting a withdrawal application.

Mobile terminals are designed for popular operational systems, such as: Android, iOS, Windows Mobile OS.

You can download and install a desktop version of MetaTrader4 trading terminal for your PC in the special section of our web-site. Here, you can also find additional applications for Digital contracts trade on MetaTrader4 platform.

A special version of the trading terminal that will allow you to carry out trade and analyze financial markets without installing a trading terminal on the user’s PC. Trade directly from the internet browser. It is supported by the majority of internet browsers.

We suggest you replenish the deposit in the amount of 100 USD (in any currency) and get a bonus of + 100% for the amount of each deposit and a free VPS server.

Why a real account?

Opportunity to earn

Earn on financial markets by trading with real money. Some of the best conditions on the market.

Minimum deposit from 1 USD

Trading on mini-forex accounts will allow you to solidify received knowledge and master new trading strategies with minimum financial risks.

LEVERAGE UP TO 1:1000

Leverage from 1:33 to 1:1000 allows regulating own risks and carrying out margin requirements calculations when choosing trading operations amount.

INSTRUMENTS FOR TRADE

Wide range of technical analysis instruments, graphic features, trading indicators in the terminal for successful trade on the currency exchange market. Trade, using your trading strategies, mechanical trading systems and advisors.

What you need to trade on World Forex?

Company news

Dear Company’s clients!

8 March 2020 a daylight-saving shift occures in the USA and Canada. .

Dear Clients!

We are informing you about the changes to the schedule of trading sessions on.

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