How to open an account with easyMarkets?

  1. Go to easyMarkets Official Website;
  2. Click on “Open Account” to go to the registration page;
  3. Submit the application and you will receive your account ID;
  4. Log in to easyMarkets’ portal to start trading online.

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What you should do to start trading Forex and Stocks?

Now you’ve learned the whole story of trading, verified your skills with a demo account, and are finally ready to open an actual trading account. So how much money should you start with? Here are some factors to consider.

First of all, it is important to know the minimum deposit amount required by the broker when opening an account.

1. Minimum account balance

First of all, it is important to know the minimum deposit amount required by the broker when opening an account. It is important to keep stock trading only when you have enough money to lose it. That’s because financial markets carry a lot of risk.

You may also need to save some money to invest in investment equipment and software, so you may not want to invest all at once. In addition, there are statistics that many novice traders make mistakes in the first transaction, so we have some cash as a backing so that we can open another account when we get the hang of the transaction. It’s a good idea to keep it.

Another factor to note is the minimum withdrawal amount, which varies from broker to broker. Some brokers do not specifically impose a minimum withdrawal amount on credit card transactions, but some bank transfers require a minimum of $ 50 per withdrawal. This means that even if you withdraw some profit, you want to stay in the market, deposit more than the minimum withdrawable amount to keep your account open, and then open an account.

In recent years, there are several brokers that can open an account at a low price of $ 10 and offer the seemingly attractive condition of leverage of 1: 100. However, a combination of high leverage and small account balances increases the likelihood of requiring a margin call, so it makes sense to increase your investment a little more so that you can hold your position in the face of large price fluctuations. increase.

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2. Avoid margin calls

You might think of trading as a business that means that a lack of capital drives oneself into failure. For example, if you open a trading account for only $ 25, you can see that even if you have enough profit to double or triple your capital, the margin call will wipe them out faster. I think.

Consider a novice trader who opened his first account for only $ 25. He decides to buy a small amount of USD / CHF at an exchange rate of 1.000, which is $ 1.00 each time the pip fluctuates. This means that a 10 pips fall is equal to a $ 10 loss and a 10 pips rise is equal to a $ 10 profit.

Now, let’s assume he is trading at a leverage ratio of 10: 1. That is, he must deposit 10% of the margin, or $ 2.5, to the broker as trading margin. If his equity falls below this level, his open position will be closed automatically and he will bear the loss himself in the event of closing his account.

With a capital of only $ 25, having a small position in the USD / CHF long open means a margin call as a drop of just 22.5 pips would leave his remaining equity of just $ 2.5. Means enough to cause. In addition, it does not take into account spreads and other transaction fees that may be incurred in this case. Keep in mind here that the USD / CHF will usually generate an average of 70 pips / day fluctuation, where volatility alone is sufficient to eliminate such small amounts.

On the other hand, consider that a trader has learned a lesson and saved $ 10,000 to open an account with a leverage of 10: 1. Even if the currency pair moves 100 pips, he can buy a small amount of USD / CHF and may stay in this position. That’s because his remaining stake is well above the margin call level, even with above-average volatility. The pair can avoid margin calls by fluctuating 500 pips against him.

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3. Know the spread cost

As mentioned earlier, spreads and other potential transaction fees should also be considered when determining how much money to start with. The reason may be small, but these costs can add to and impact bottom-line profitability.

Of course, it’s also helpful to consider how much leverage you’re dealing with to reduce these costs incurred in your account. For example, if you have a small account for $ 500 and buy 5 GBPUSD mini lots with a 5 pips spread, you will already be charged $ 25 as a transaction fee.

Fortunately, easyMarkets offers narrow fixed spreads that can minimize these risks and costs. We recommend that you take a look here at the table of spreads for several currency pairs and the financial products offered by easyMarkets’ platform to help you calculate the funds needed to open a trade.

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4. Choose your trade style

Last but not least, the trading style that determines how long the position remains open and how volatile the account can withstand is important. If a swing trader wants to keep trading open for days or weeks, consider the average volatility of the pair you are trading and these potential price fluctuations will be overcome by your account. You need to make sure that you can. Long-term trading strategies are more appropriate for large clients as they can stay longer in the market.

Of course, this does not necessarily mean that short-term traders or scalpers may eliminate small accounts. With these trading styles, the more frequently you trade, the more transaction fees will be charged to your account, so spreads are a more important consideration.

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