Account creation is a crucial step, which is highly dependent on the correct choice of a broker. It is highly recommended opening an account only if the broker you pick is a reliable and trusted company that has earned credibility and respect in the market. Otherwise, you risk a lot picking a broker that is just near you. The procedure of registering a live trading account in South Africa is quite simple and does not require specialized labour and financial costs.
Registration of a trading account can vary from company to company, especially when it comes to foreign representative offices and brokers. The trader needs to fill out paper forms and send them by mail to a broker. Today, there is a multitude of accs that brokers offer their customers to open. They meet not only different technical needs. Different accounts have slightly different specs and purposes, and accordingly, certain services will be provided based on the agreement on each specific account.
1. Demo Account
The demo account is primarily intended for training and debugging a trading strategy. Most brokers have a free demo account so that the trader could evaluate the quality of the services provided and open a real account later if he is happy with the service quality. Of course, most brokers have demo accounts with high-quality Forex signals, order execution, and toolbox.
The demo account registration algorithm is extremely simple and allows you to operate on the stocks exchange. You need to go to the broker’s website, download the terminal (most often it is MT4), open the “accounts” tab, and create a new demo acc there. Then the necessary parameters of the conditional deposit are indicated.
Follow the below sequence of actions:
- Open a registration page;
- Enter personal data (mail, phone number, name);
- Perform account verification (via email or phone);
- Choose the currency;
- Type in credentials in the appropriate windows in the terminal.
2. Real Account
A real account can be found with most brokers. It is created according to the same algorithm as described above. The standard acc involves the following algorithm for outputting a trade order to an online interbank (actually for operational business):
- Receiving an order;
- Adding appropriate leverage;
- Summation with orders of other traders;
- Manual transfer of orders to the interbank;
- The results are divided by order parameters between all traders.
This is a classic and slightly outdated model. Modern systems in South Africa allow eliminating the intervention of a broker in transaction processing. Modern Forex brokers most often perform the functions of a lender (by providing leverage) and an intermediary (that he receives a commission for).
Classic real accounts start with a deposit of $100 if the broker has a leverage of 1:500 for you. Thus, the trader actually operates with an amount of $50,000. If the broker provides lower leverage, then the requirements for a deposit/ commodities to a real account increase significantly. Often there are variations in leverage rates of 1:100, 1:200, 1:50, 1:25 and 1:4.
3. Micro / Mini Account
Mini and micro accounts are intended mainly for traders with limited financial capabilities or reserves, those who also want to engage in Forex trading. If a conditional deposit “milestone” is reached, the broker may offer to switch to a standard acc so as not to pay the trader’s profit from his pocket. Sometimes this transition occurs automatically, and the trader may not always know about it.