Many people become interested in Forex trading. However, it might be difficult to find relevant and reliable information on the topic. For example, there are numerous instructions on how to open an online trading account but it is not clear whether you can trust the source. The development of companies that provide access to foreign financial markets to users is directly related to the number of citizens who have the opportunity to connect to the Internet. In the late 90s and the first decade of the 21st century, there were a lot of rumours that a lot of money could be made on the Internet, even without the appropriate education.
But when the number of Internet users began to increase rapidly, the percentage of those who continued to believe in these fairy tales dropped significantly. Most of them were once again convinced that they will hardly receive money for nothing. And in many areas of activity, offline earnings were higher than similar work on the Internet. But even this statement has its exceptions. One of them is making a profit in the global financial market.
When deciding to become a professional trader or use financial assets to generate additional profit, you need to study in detail all the nuances of this business. A beginner should know the terminology, figure out who will pay them money and for what, learn how to prepare trading strategies, analyze economic news and analysts’ forecasts.
As a result, a future trader will not only receive the necessary knowledge, but will also be able to understand how this activity suits them, whether it will bring moral satisfaction or it is better not to waste energy, time, and money, but to use their potential in another industry.
In other words, if you learned today what the spread, lot, minimum deposit, and transaction amount are, or how the global financial market functions, and after a couple of days, studying the website of any broker, you understand well what this is about, then you have real chances to become a professional trader.
A good platform to start Forex trading is the Forextime blog. It is great for beginners as well as for more experienced traders. You can find a lot of information, news, and tips there. It is also available for citizens of South Africa.
A trader who has found a trading platform that meets their needs and goals must register an account, open a trading account, and verify this account. First, you need to figure out how to become a full-fledged user of the site. The most typical and common requirements are:
- Indicate full name and country (address) of residence;
- Phone number;
- Choose an account currency;
- Create a password.
After filling out a special form (each broker has its own minor features), you will receive an email confirming your login registration. In some cases, users need to enter the code that is in the SMS message (comes to the specified phone number).
The last of the presented stages (verification) often alarms potential users of the service. There are a lot of different rumours and guesses around this procedure. Some traders argue that brokers are thus trying to gain time (while the client’s data is being verified, they do not conduct payments). Other customers are alarmed by the fact that they have to provide the administration of the service with their personal data, etc.
In fact, when it comes to a decent broker, this procedure is a necessary security measure. It helps to identify the user and “weed out” everyone who poses a potential threat to the site. Thanks to verification, the website does not work with fraudsters, suspicious persons, and criminals who are involved in money laundering.
To carry out verification, you need:
- A copy of your passport or another identity document.
- Checks for utility bills with your personal data (surname, first name).
- A scanned card of a financial institution (not all brokers require it).
Verifying your identity is a lengthy process. Therefore, before sending the listed documents, be sure to check all the specified data.
Questions and Action of the Broker That Might Seem Suspicious
You should not sign an agreement with company representatives if they begin to require additional documents to verify the account. Also, suspicious activities include:
- Unreasonable changes in trading conditions.
- Lack of organizations that control the work of the broker.
- All positive reviews about the company were written at the same time and many of them practically do not differ from each other.
Another important point is related to the storage of deposits of their clients. Modern brokers try to place users’ funds on separate accounts in reliable banks. If your broker cannot give an exact answer about the placement of money, it is best not to contact them.