Table of contents:
- 1 The registration form
You have decided to start CFD or Forex day trading and want to open an account with a broker. You will find that you have to fill in quite a lot of information on the opening form and provide additional documents. To make it easier for you to get started, we will show you what is required.
The registration form
Step 1 – Product selection
In step 1 you must confirm that you are of age. You will also be asked whether you are a resident of the USA and whether you understand the risks of leverage products.
Step 2 – Risk information and general terms and conditions
This step is followed by the detailed risk information and the general terms and conditions of the broker. By clicking on the corresponding boxes, you confirm that you have read and understood them.
Step 3 – Contact details
In this step you enter your contact details, including name, email address and telephone number for any queries or contact. Be especially careful to use a correct email address, as all account information will be sent there.
Step 4 – Further details
After the basic data of the account holder from step 3, the date of birth and the address are entered. If you have lived in your current place of residence for less than three years, you will be asked to enter your previous place of residence.
Step 5 – Employment relationship
Now follow data on your current employment relationship, for employees questions about the employer will appear. If you are working in the financial sector, the questions about the FSA relationship are important for you. All others can answer the corresponding questions in the negative.
Step 6 – Financial status
Here you will find information about your financial environment. If you are surprised by the wealth of questions, these are necessary for legal reasons. One interesting and important detail is still hidden here: the currency in which your account should be kept. At the moment you can choose between Euro (EUR), British Pound (GBP) and US Dollar (USD). Remember that you have a currency risk if you choose a foreign currency! If the dollar falls, the value of your account will also fall. However, if the dollar rises against the euro, your account will benefit.
Step 7 – Adequacy
This is the last step to opening your trading account, you are almost there. Here you will be asked questions about your experience in equity and derivatives trading. Be honest!
Now you have done it, the registration is filled out and you will receive the confirmation email from the broker. In this mail documents are requested, which are necessary for legal reasons. Don’t worry, you can simply scan them or take a photo. Make sure that the document can be read really well, a blurred mobile phone photo only leads to inquiries and delays.
Copy of ID: Take your passport, identity card or driving licence. Make sure that the document has not expired!
Confirmation of address: This is only necessary if you do not use a copy of your identity card, because your address is missing on your driver’s license and passport. Simply scan a current bill (gas, water, electricity or landline) or a bank statement from your house bank. By the way, you are allowed to black out all numbers here, it’s only about your address! In English forms this type of confirmation is called a “utility bill”.
Your new trading account is ready, the software is installed and you want to start trading quickly. To do this, you now need to capitalize your account. There are several ways to do this at XM:
Credit Card: Impatient people can fund your account by credit card, but since the broker has to pay fees to the credit card company, this costs you 1.5% of the deposit amount. The advantage is that you can get started here in just a few minutes.
Bank transfer: Of course you can also transfer the money, please note the different bank details for Euro, Pound and Dollar accounts. This type of capitalization does not cost you any fees, but you have a short waiting period during the bank term of the transfer.
As a well-prepared and disciplined Forex or CFD daytrader, you are hopefully one of the winners and the winnings will accumulate in your account. At some point the time comes when you want to transfer your profits back. With some credit cards this can be directly to your card account, with Mastercard it is not possible. Usually, the return transfer is more likely to be in the form of a normal bank transfer. In some cases, the broker will send a payout confirmation code with the very first refund, which you will need to confirm. This is for your own safety and is only required once, it will not be requested for later withdrawals.