In general, the individual trader is required to fulfill two steps prior to trading:
- Register at the trading platform
- Deposit funds to facilitate trading
Requirements vary with each trading platform, but these steps bear further discussion:
Registering as a Trader
Registration is done online by the individual trader. There are various forms used in the industry. Some are quite simple, where others are longer and more time-consuming. In part, this can be attributed to governmental or other authorities requirements, though some trading platforms require more information than is actually needed. Some even require a face-to-face meeting, and all require hard copies of documents such as a passport, or driver’s license.
The key requirements for registration are the trader’s full name, telephone, e-mail address, residence, and sometimes also the trader’s yearly income or capital (equity) and an ID number (passport / driver’s license / SSN / etc.). Typically, the trading platform will run a thorough check on the ID provided so as to verify the authenticity of the details provided.
Registrants are required to declare that funds used for trading are not in question, and are not the result of any criminal act or money laundering activity. This is mandatory as part of a global anti-money laundering effort.
Depositing funds into a your trading account
New registrants must deposit funds to facilitate trading. However, the majority of trading platforms today require that, in addition to funds used for actual trading, an additional amount be deposited. Often called ‘maintenance margin’ or ‘activity collateral’, its purpose is for the platform to have an additional guarantee. Some of the platforms that require an additional deposit do pay interest on the collateral, which is ‘frozen’ under the trader’s name.
The easyMarkets Trading Platform does NOT require any additional guarantee, and allows trading with 100% of the amount deposited. easyMarkets is able to provide these advantages because of its guaranteed rates and Stop-Loss. That means that there will never be any additional requirement for funds as a result of a ‘gap’ that causes you to surpass the Stop-Loss.
Many online market makers require the download and installation of software specific to their own trading platform. Consequently, accessibility is limited to those terminals that have the software. Since trading is borderless, and may be performed at any given time, it is obviously advantageous to have access to trading from as many locations as possible. The easyMarkets Trading Platform is a fully web-based system, which means trading can be conducted from any computer connected to the internet. Traders are only required to log-in, ensure they have available funds to trade, or make new deposits, and commence trading.