How to Open A Trading Account

This learn gold tutorial will show traders how to set up their account so that they can begin to trade gold. Before signing up a trading account there are different factors that traders should consider before taking this step.

To open a trading account, traders need to find an online broker & then they can setup their account with the broker that they choose. Once a trader opens this trading account the trader will then use it to place trades in online trading market and the profits & losses that they make when trading will be trading accounted for in this account.

A trader will need to consider the following factors when signing up a trading account:

Regulation of Trade Broker

Before opening a account traders must first know that they should only select to trade with a regulated broker. In gold trading there are hundreds of brokers, some are regulated & other that are not. A trader must do due diligence when selecting a online broker & check the regulation license details of the broker they want to trade with. Remember some brokers which are not regulated will write an article on their gold website about gold trading regulation and link to this article - if a trader is not careful they will be tricked into thinking that the broker is regulated, make sure to check the license details of the broker & you can also confirm these details with the regulatory authority regulating the broker.

Leverage

Traders should consider the leverage offered by the broker when it comes to opening and accounts. With trading leverage a trader controls a large amount of capital while using little of their capital. Trading Leverage is one of the reasons why a gold trading is very popular because traders can make a lot of profit from gold trading using little of their money.

A trader should therefore consider the leverage given by a broker some brokers give 100:1 and others as high as 400:1, with trading leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have & therefore the trader using this leverage will control $400,000 which they can use to open trade positions with.

Stop Out Level

This is where a broker will close all the trades of a gold trader if the traders makes losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a xauusd trader's transaction getting closed. However, there are brokers who are not very straight & these brokers will set the stop out at 100 percent% & with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a online broker setting the stop out at 20%.

Learn More Courses and Topics:

Trade Gold Trading

How to Open A Trading Account

Regulation of Trade Broker

Leverage

Stop Out Level