Frequently Asked Questions
Are you one of the many traders that have Frequently Asked Questions regarding Forex and CFDs? We layout the most common questions asked by traders such as yourself. Get your answers to your questions and feel more comfortable before making any decisions regarding your Forex and CFD trading account.
A lot of brokers take advantage of new traders, which we are trying to prevent by providing relevant and up-to-date information. As a trader and a client of a broker, you have the right to frequently asked questions that are answered in a simple and informative way! There is no such thing as a dumb or stupid question.
All traders started out right where you are now, moving their way forward to an experienced trader.
As you progress in your trading career you might even have more questions that you require an answer to, which is very common and normal. We are here to help and assist you with up-to-date answers to surveys from traders with their most asked questions. We will continuously add more questions and answers to build an even bigger database.
If you should have any specific questions you would like answers to, please do not hesitate to send us an email: email@example.com or post it on our Facebook page. All your comments and feedback are welcome at all times.
FAQ – Questions and Answers
Why do I need to submit my documents for account validation?
All our reviewed brokers are regulated entities, they operate in accordance with a number of compliance-related responsibilities and procedures imposed by the main regulatory authorities they are governed by.
What Types of documents do I need to submit with a Broker?
You need to submit Proof of Identification and Proof of Residence. Some brokers may require other documentation such as proof of bank account or a copy of the card used to make the deposit.
What types of documents will be accepted for identity verification?
Acceptable documents for identity verification include but are not limited to:
- Valid, current passports (national or international)
- Valid, current driver’s license
- Valid, current national ID Card
Is there a cost of opening a trading account?
No, you can open and hold accounts free of charge, regardless of your trading activity. This applies to both Live and Demo accounts. However, please remember that demo accounts are only valid for 30 days in most cases.
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What types of documents will be accepted for address verification?
Proof of residence must show your name and address as indicated on the application. Acceptable forms of proof of residence include but are not limited to:
- Utility bill
- Bank, building society, credit or debit card statement
- Council tax bill
- Local government address registration certificates
How Long does it take to verify an account?
Account verification can take up to 24 to 48 hours to be verified. This is the standard with our listed brokers.
How much money do I need to open an account?
All brokers will have a minimum first-time deposit requirement set for their clients. However, we recommend you deposit at least $500 (R5,000) to allow you more flexibility and better risk management when trading your account.
Does Your broker charge a monthly fee?
In most cases, no, but some brokers charge an inactivity fee if your account has been inactive for 3 consecutive months. This is broker dependant and not common in our findings.
Can my balance go into a negative?
Some Brokers have negative balance protection. Should your account go into a negative balance, your broker will clear the balance and put you back at a 0 balance. Please keep this in mind when signing up with a broker as it is a very useful feature to make sure you never owe the broker money.
Should I trade with a non-regulated broker?
No! Not under any circumstances should you trade with a broker who is not regulated with at least one regulatory entity. This is an extremely high risk. If you have complaints there is no entity that you can file a complaint with. This puts you and your funds at risk!
Should I avoid market makers?
No. You should not be concerned whether or not your broker is a market maker, as 99% of them are but will not publicly admit it. You should be concerned about fair trading conditions, good fills and customer support. Regulation is the most important as you can easily complain if you think you are being treated unfairly.
What are swaps and how do they work?
Swaps or roll-over is a form of interest charged when a position is carried or held overnight. This is standard and nothing to be concerned about as it can also positively impact you, which is what we call a positive swap.
Should I make use of a stop-loss?
Yes! We cannot stress this enough. It is crucial to protecting your account, limit losses and giving you the best possible opportunity for success with your trades. Using a stop-loss goes hand in hand with risk management. Without proper risk management, you put your account at great risk. Never adjust your stop loss if you are in a negative or losing trade.
The only time you should move the stop-loss is when you want to protect profits such as moving to BE (breakeven) or locking in profits.
Should I make use of a signal service?
Our recommendation is to not make use of such services in most cases. Why would a profitable trader with a claimed accuracy of 70% + be selling his signals if he could be trading his own funds and make huge profits? Be careful as they use good marketing tactics and fake claims or even screenshots to try and convince you to pay for their signals.
Why does my trade that I open start in a loss?
All trades, long or short, will always open and start out in a loss or negative. This is due to the spread you pay when opening a position. If you open a trade with a spread of 1 pip, and you are risking $10 a pip, you will be down $10 as soon as you open the trade. Once you overcome the spread your trade will go into profit.