Want to start trading? Here’s how to open a trading account

Julie Brownlee, Fsp Invest, 03 Dec. 2014

Tags: trading, trading account, types of trading accounts, opening a trading account, how to open a trading account,



If you’re serious about giving trading a go, you need a trading account.

Before you can open a trading account, you need to decide what type of instrument you’re going to trade.

Let’s take a look at your options and how to open a trading account…



The different trading accounts you can open


If you know what type of assets you want to trade, this will help to narrow your search for what type of trading account to open.

It all comes down to what you want to trade. There’s no point opening a forex trading account if you want to trade stocks.

So what are your options?

The main trading instruments available are:

  • Contracts for difference (CFDs): For trading stocks and ETFs.
  • Single stock futures: For trading stocks and ETFs.
  • Spread trading: For trading a wide array of different assets including stocks, commodities, currencies and indexes.
  • Options: For trading stocks and ETFs.
  • Currency futures: For trading forex.

Once you know what you want to trade, you can decide which trading instrument is best for you.

Then you need to open your trading account…


How to open a trading account


Regardless of what trading instrument you decide to use, it’s a similar process for opening an account.

Step 1:
Look for brokers that provide the type of trading you want. Research the companies and what the account offers, including the fees and commissions, and the minimum amount of money you need to open an account.

From this you can select a broker.

Step 2:
Once you’ve decided on a broker, get in touch with them about opening an account. You may be able to do this online. But you’ll have to provide documentation as part of this process.

The documents you need include:

  • A certified copy of your ID or passport.
  • Proof of residential address, such as a rates letter or bank statement.
  • Proof of your income tax number. A letter from SARS detailing this and your name should suffice.
  • Proof of your banking details, such as a bank statement.

Step 3:
Once the broker processes your application and approves it, you’ll receive you trading account information.

Then all you need to do it deposit funds in your trading account. Your broker will explain how to do this.

Now you’re ready to start trading.

So there you have it, how to open a trading account.

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Comments
2 comments



Annette Beyers 2016-07-31 16:25:25

How about you subscribe to Trading Tips, this is a free online newsletter, that will guide you in trading and how to get started.

http://tradingtipssa.co.za/

pepper 2014-12-10 13:04:51

Good day, i would liek to start trading however i am absolutly clueless as to where to start. I know i need to open a trading account . you make reference to Contracts for difference (CFDs): For trading stocks and ETFs.
• Single stock futures: For trading stocks and ETFs.
• Spread trading: For trading a wide array of different assets including stocks, commodities, currencies and indexes.
• Options: For trading stocks and ETFs.
• Currency futures: For trading forex.
I have know idea which one will be best for me. i have read many of your newsletters about making profits, however i dont knwo what to do or what account i should be opening. I am really confused

please advice.
if it is possible for eme to chat via email to get some of my questions aswered.


 
 


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