How To Open A Trading Broker Account
Welcome to the Trading Brokers step by step guide to opening an online trading account with a broker. We aim to provide an easy to understand explanation of the trading account opening process so that you can quickly and easily choose an online broker to start trading forex, stocks, commodities, cryptocurrencies, energies, precious metals, CFDs and more.
What is a trading broker account?
An account with a trading broker allows traders from all around the globe to download trading platforms and trade various markets online. All that is required is the client opens an account with the broker, funds the account and has an internet connection. This means that anyone can open a broker account to start trading online.
Each broker will have a range of different trading accounts to cater to different client needs. Some brokers will provide accounts that only offer online trading whereas others have accounts that come with other brokerage products and services including managed accounts, trading signals, market analysis, social trading and dedicated account managers.
Compare trading broker accounts & services
Each individual trader will have certain investment objectives and goals. Some may be day traders who plan to enter and exit positions on a frequent basis whereas others may be swing traders looking to hold positions for the mid-long term. The amount of investment and experience level between traders will also vary.
For these reasons amongst others, it is important to compare trading brokers with each other to ensure that you can identify the best trading brokers according to your individual requirements. If you are a frequent trader, you may wish to consider checking out our best discount brokers. If you are new to trading online and would like as many educational resources as possible, you may wish to take a look at our best brokers for beginners. Some of the most important things to consider when comparing brokers include:
- Minimum deposit: The brokers trading account minimum deposit size should be achievable.
- Regulation: The broker would ideally be regulated by a top tier regulator.
- Leverage: The broker should offer a leverage that you feel comfortable with.
- Fees: The brokers fees should be competitive, including trading and accounting fees.
- Spreads: The brokers spreads should be suitable for your trading strategies.
- Trading platforms: The broker should provide trading platforms you are familiar with or a platform with a quick learning curve, such as MetaTrader. The trading brokers review team have compiled a list of best MetaTrader brokers.
- Trading instruments: The broker should offer a range of asset classes that you are interested in trading online now and in the future.
- Trading tools: If you require additional trading tools then it would be worth checking if these are provided by the broker. Additional tools can include trading calculators, sentiment analysis and economic calendars.
- Educational materials: If you are new to trading online, it can be beneficial if the brokerage provides clients with a range of trading guides, tutorial videos and webinars.
- Daily market analysis: If you are interested, some brokerages offer expert market analysis to clients. This can help to inspire potential trade ideas.
- Funding methods: Each broker will support certain methods of making deposits and withdrawals to and from your trading account. If you would like to use a specific method, you should check that it is available or if they broker provides alternatives that are convenient for you.
Choose a trading broker
Once you have identified the best brokers according to your individual requirements, you will then need to choose a broker that you feel confident opening a trading account with. If you have narrowed down your search but are still unsure, perhaps you can compare the pros and cons of each option to see which makes the most sense and is most likely to save on overall trading costs in the long term. If you need further inspiration, feel free to take a look at our best online brokers.
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin
Min $200 Deposit
ASIC, CySEC, IFSC
Min $5 Deposit
Contact trading broker
Contacting the broker that you have chosen to open a trading account with can be a great way to gauge the efficiency of their customer support. When you have a trading account with them, you will want prompt and accurate support so this can be a vital time during the account opening process. Feel free to ask them as many general, technical or account-based questions that you have. Most brokers will offer customer support via online chat, telephone and email. Check that they offer support in a way that is convenient for you and also that they operate during hours that are applicable to your time zone. It could be a good idea to also ensure that they offer services to your country of residence as some brokers are restricted from providing brokerage services in specific regions due to strict rules and regulations.
Complete trading brokers account application form
Once you have settled on your broker of choice, you will need to open a trading account by completing an online form. This is usually easily accessible from the brokers website by clicking on an “open account” button or something similar. You will need to provide some personal information and verify your account by providing proof of identity (e.g. passport or drivers license) and proof of address (e.g. a utility bill no more than 3 months old). This is a normal part of the Know Your Customer (KYC) procedures that brokerage firms have to follow to verify the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.
Trading account verification
Once you have submitted your trading account application form, you will need to wait for it to be verified. Some brokers can even verify your trading account on the same day whilst others take longer. If you get stuck at any point during the account opening process, the brokers customer support team should be on hand and happy to assist. It is imperative that you read all of the brokers terms, conditions and policies during the account opening process. You should only proceed if you understand and agree to them all.
Start trading online
Once your account has been verified by a member of the accounts team, you will receive your account details, including your login and password. You can then download the brokers trading platforms, fund your trading account and start trading online.
Opening a trading broker account process
Hopefully you now have a clear understanding of the trading broker account opening process including what to look for and the steps require to get an account for trading online. To summarise, the basic steps are as follows:
- Compare brokers that meet your needs
- Choose the best broker based on your needs
- Contact the brokers customer support
- Complete online trading account application form
- Verify your personal information by providing KYC documents
- Download the brokers provided trading platforms
- Fund your trading account
- Start trading online!
Choosing the best trading broker
Deciding which trading broker is the best for your individual trading needs is a big decision that can affect the overall performance of your investments in the mid-long term. For that reason, it is imperative to consider the different broker options available to you for trading online. With so many brokerage firms to choose from, this could seem like an overwhelming task. The trading brokers review team can help to make it a quick and easy process. We have studied and analysed hundreds of online brokers which we have than reviewed in great detail and assigned an unbiased rating based on our findings. You can see a list of our best online brokers for those that received the highest ratings and choose a broker that is suitable for your requirements.
Not sure which broker to open a trading account with?
If you are still unsure which broker is the best for you to open a trading account with then you can use our free online broker comparison tool to quickly compare brokers based on regulations, minimum deposit, leverage, spreads, commissions, funding options and more. You can also read our broker reviews and choose from our best brokers, best trading platforms, best copy trading platforms, best social trading platforms and best trading apps. If you would like to look for the best trading brokers in a particular country, we have pages dedicated to our best brokers USA, best brokers UK, best brokers Australia, best brokers South Africa and best brokers Canada.
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