Forex trading has grown quite popular and there is a large number of people who want to get into the action.
As an open online market, anyone can join the market, learn how to trade, start trading and start enjoying the massive profits that come with successful trading.
The trading market contains some large players such as large financial institutions who are trading with their clients’ funds and also many small retail traders who are risking their meagre savings either to supplement their income or as day traders who earn a living from their day to day activities in the forex trading market.
Unlike large financial institutions, for retail traders to get a piece of the forex market, they need to go through a market intermediary known as a forex broker.
Through a forex broker, you can open an account, fund it with your local currency or whichever currency you prefer and start trading.
Who is a forex broker
A forex broker is a market intermediary who gives retail traders access to the forex market.
When choosing a forex broker to open a trading account with, one has to ensure that they are well known, that they have amassed years of experience in the market and have many satisfied customers.
Rakuten forex brokers is one of the brokers that meet this criteria of trustworthy brokers. It is form them that you can get a Rakuten trading account for forex trading.
How do you get a Rakuten trading account?
To open a Rakuten trading, you will need to first visit their website. Once there, you will click on the account tab to indicate that you want to open a trading account.
After you have indicated your wish to open an account, you will be required to provide some personal details. This is a legal requirement that all forex brokers must follow to ensure that their clients’ funds and personal information is protected.
Some of the information you will be asked to provide include: your name, nationality, government identification and the form of currency you would wish to fund your account with.
Once the broker confirms that you have provided all the necessary information to their satisfaction, they will allow you to access your account, load your starting capital and start trading.
How to trade forex
Now that you have a trading account, how do you go about trading the forex market?
First load your account with your starting capital.
Forex involves the exchange of two currencies. Most traders buy and sell the major currencies of the world as they are more liquid and thus have more movement and traders can therefore make large profits.
The movements in the currency you are trading can be monitored through your Rakuten trading account. When you close your trade, your profits or losses will reflect in your trading account and you can then request your broker to withdraw your profits.
Profits can be withdrawn as frequently as you may like or depending on your broker’s rules.
Features of Forex Trading accounts
They provide leverage
Leverage in simple terms is a loan. Leverage is a loan from the forex broker to their client the trader to enable them capture a larger portion of the forex market with their limited capital. With leverage, a trader is able to trade with more money than they actually have and therefore make more profits.
Leverage also increases the magnitude of loss that the trader incurs if the market moves against them.
Based on broker software
Forex brokers provide the software that traders use to trade. Different brokers use different types of software and therefore traders need to learn the specific software that their broker provides.
Can trade different types of assets
In addition to forex, forex brokers also offer traders other assets to trade. These are other financial assets that such as agricultural or industrial commodities that can be traded and profited from.