How to Open A Account

This learn gold guide will show traders how to set up their account so that as they can begin to trade gold. Before signing up a 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 and then they can setup their account with the online broker that they choose. Once a trader opens this trading account the Gold trader then will use it to place trade transactions on online market and the profits and losses that they make in trading will be trading accounted for in this account.

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

Regulation of Trade Broker

Before registering a account traders must first know that they should only choose 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 broker and check the regulation license details and particulars 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 and particulars of the broker and you as a trader can also confirm these details & particulars with the regulator regulating the broker.

Leverage

Traders should consider the leverage offered by the online broker when it comes to opening and accounts. With leverage a trader controls a large amount of capital while using little of their capital. Leverage is one of the grounds 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 out all the trade transactions of a gold trader if the Gold traders makes losses beyond a certain level. The best brokers will implement their stop out level at 20 % & at this level there's minimum chance of a xauusd trader's transaction getting closed. However, there are brokers who aren't very straight and 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 broker setting the stop out at 20%.

Learn More Courses and Topics:

Trade Gold Trading

How to Open A Account

Regulation of Trade Broker

Leverage

Stop Out Level