Trading is one of the fastest ways to earn huge amounts legitimately. However, this can only be possible when you have the right knowledge and access to the right tools. Many beginner traders are often filled with information overload due to the amount of content they consume online, in search of the perfect guide to building a career in trading.
If you’re looking to open an account to trade and establish a profitable career in trading, there are a few basic things you need to know. This guide will help you highlight the essential tools required to open a trading account and help you begin your trading journey.
What Is a Trading Account?
A trading account is any platform that houses various assets, securities, currency pairs, stocks, etc. It is commonly used to describe the primary account of traders where they get to buy or sell a trading asset. Depending on the specifics of their accounts, many traders often buy and sell assets, which can be for a long or short period.
Typically, a trader can access a virtual account, popularly called a demo, or a real account. Both can help a trader buy and sell various assets in the market. However, some regulations distinguish a demo account from a real account.
Differences Between a Demo Account and a Real Account
Demo Account
As a first-time trader, you may be conscious of using your hard-earned money to trade due to the high probability of losing money on trades. A Demo account allows you to trade various instruments using virtual equity. You are given a virtual fund to buy or sell a given asset.
The market conditions for Demo accounts are not different from that of a Real account. They are the same, which makes it ideal for mastering and executing your strategies. Demo accounts are often preloaded with $10,000 virtual funds and are available for every account type except Standard Cent.
It’s advisable to open a real account only when you have gained enough confidence and mastery of your strategy.
Real Account
A real account allows you to execute trades with real funds, thus creating a real-time value on the amount you make or lose from closing a trade. Trading a Real account with Olymp Trade allows you to choose from various trading instruments available in the market, whether currency, stocks, or cryptocurrency.
Here’s a tabular summary of the key differences between both accounts;
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Demo Account |
Real Account |
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Funds |
Virtual funds |
Real funds are deposited by traders using a preferable payment method. |
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Archive Period |
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How to Set Up a Real Trading Account
To start trading forex by creating a real account, adhere to the following detailed instructions:
Step 1: Select a Trustworthy Broker
Choosing a trustworthy broker who fits your trading needs and tastes is an important first step. Do careful research, considering variables such as fees, trading platforms, customer service, regulation, and available trading instruments.
Step 2: Sign up on the official website of the Broker
After selecting a broker that meets your needs, visit their website to find ways to register. Give the relevant personal information, such as your name, phone number, email address, and any other needed information.
Step 3: Open your Account and Log in
You will receive your username and password through email or directly on the website following a successful registration. To access your account on the broker’s website, use these login credentials.
Step 4: Decide on the Actual Account Type
The broker offers many account types, usually listed in your account. Select the account type that best fits your trading objectives and financial situation by weighing the features and advantages of each, especially margins and spreads. After making a decision, select the account type.
Step 5: Fund the Account
You must deposit money into your freshly formed real account before you can start trading. Based on your financial resources and risk tolerance, determine your starting budget. Typically, brokers offer a range of deposit options, including electronic wallets, credit/debit cards, and bank transfers. To make the deposit, pick the option that works best for you and adhere to the directions.
Step 6: Add Money to Your Account
The funds will be credited to your trading account once the deposit is complete. Depending on the preferred deposit method and the broker’s policies, this process can take some time. As soon as the money is successfully credited, you can begin trading.
Step 7: Start your Trading Career
Once your account has been financed and established, you can use the broker’s trading platform. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the most widely utilized platforms. To access the trading platform, enter the given login and password. For security reasons, you should reset your password when you check in for the first time.