OFP Trading Account

The first important step in order to open an investment account a trader needs to make is choosing an online broker. A brokerage account is an account a trader can use to purchase and hold investments, such as stocks, bonds, currencies, exchange traded funds (ETFs) and mutual funds. When opening a trading account with a brokerage firm, the firm buys and sells investing assets in the market on trader’s behalf. The firm is also the custodian for the securities the investor owns in the brokerage account.

The major advantage is that one can open trading accounts online without going to a bank or the broker’s office because, unlike physical trading, trading accounts offer one-point access. A trader can access commodity exchanges through a single trading account, as well as stock exchanges like BSE and NSE. Creating an online trading account allows investors the freedom to trade on their phone, PC, or through other devices.

Industry compliances

Why forex brokers need to know all of their client personal information may be a mystery. The straightforward solution is to follow the law. The environment regarding forex trading is relatively unregulated, however additional rules have been implemented in recent years to give account holders some kind of protection or assurance. These inquiries are also necessary for forex brokers to safeguard themselves from the danger of loss. They aim to ensure that clients who take on too much debt will still be able to cover any unforeseen losses. It’s probably impossible to find a broker willing to start your trading account without asking you these questions:

Also, there will be a couple more questions regarding the customer financial status, like:

Step by step guide to open an investment account

  1. After doing extensive research, pick a brokerage firm to open a trading account. Before choosing a brokerage, consider the various fees assessed by them, the trading platform’s user interface(MT4-MT5, Ctrader..), and the value-added services.
  2. After deciding on a broker, find out how to open a trading account. A trader must complete out a Know Your Customer (KYC) form and an account opening form before the brokerage will open the account. 
  3. Traders must also provide documentation of their identity, place of residence, and in some situations, their income. Together with additional papers, a photocopy of the Identity card or passport can be used as proof of residency.
  4. After the verification process is complete, the trading account is typically activated in 3–4 days.

Why Prop Companies Make It Simpler to Create a Trading Account Than Online Brokers

While some traders choose to deal with proprietary trading companies, sometimes referred to as prop firms, others prefer to create accounts with online brokers. There are many reasons to consider on why receiving a prop firm trading account is easier than an online broker one:

Don’t miss out on potential profits – start trading with OFP now!