The FX industry is a multi-trillion dollar industry, and it has been on the rise every year. While first-mover FX brokers in Australia are grappling to meet the demands of forex traders, many fintech startups have sprung up in recent times to cater to this burgeoning market.
With more options becoming available for currency trading, there has been much discussion about whether or not all traders need a forex account.
Furthermore, what are the benefits of having a trading account?
Find better prices
An online currency trading platform helps currency traders find better prices. Online currency platforms are connected to significant banks, giving currency investors access to information about applicable rates across different banks’ platforms.
Allows currency traders to use financial tools
A trading account allows currency traders to use financial tools such as contracts for difference (CFDs). CFDs are advanced instruments that give traders the flexibility to invest in currencies and other commodities, both long and short.
Those with a trading account could trade on margin, allowing traders to make more investments than they would have been able to if they had opened an ordinary deposit account.
Take advantage of leverage
Currency traders can also take advantage of leverage when using CFDs. Leverage makes it possible for investors who don’t have enough funds to become market makers or prominent players in the market. It gives all sorts of currency day traders access to significant returns on investments, even if only small amounts are being used as capital.
Access all sorts of resources
Currency trading platforms connected to the primary forex market also allow investors to access all sorts of resources, such as free and tip-based content and in-house training guides. With a trading account, currency traders can use the information provided by the brokerage firm’s research analysts and learn from experienced traders via webinars or courses.
Helps brokers generate leads
Trading accounts also help brokers generate leads since they can capture contact details of their clients, such as email addresses and phone numbers, which facilitates marketing opportunities.
It is beneficial when brokerages want to communicate upcoming events such as seminars or meetups where it would be beneficial for clients’ knowledge about forex to be improved upon.
Bolster client relations
A trading account allows brokers to bolster client relations. It is by allowing clients to talk with their brokerages via online chat.
Currency traders who are serious about investing in the forex market should strongly consider using a trading account. This is a popular technique to become a successful trader.
Many platforms offer free demo accounts that enable investors to trade without any risk. When investors practice on a demo account, they can become more comfortable with risks and learn how specific transactions work before investing real money.
Manage multiple investments
Lastly, a trading account allows investors to manage multiple investments at once while accessing all of their information from one place. Most accounts allow users to recover forgotten login details or reset their passwords if necessary. Furthermore, there are options for two-factor authentication, which makes it considerably more difficult for hackers to access an investor’s account.
While having a trading account can be incredibly useful, investors don’t need to have one. However, opening a trading account enables currency traders to take advantage of all the various features available on top-tier platforms and customise their trading experience according to their unique preferences.
For those interested in learning about forex or who want to try out day trading currencies via CFDs but are not sure where they should start opening up an account is strongly recommended. There are plenty of brokers that provide demo accounts free of charge. At the same time, beginners can also follow webinars or sign up for courses offered by reliable providers, which will help them get started with forex in no time at all.