Creating an Account with an options broker is a fairly simple process, but a lot of people are overwhelmed by the process, simply because it might involve steps that are unfamiliar to them. If you know what you are doing and what to expect, it’s easy enough. However, for those that are new to trading, we have put together a step by step guide for you right here.
The first step is to find the signup screen. Most brokers make this really easy—this is how they make money after all. Usually there will be a button that says something like “Join Here” or “Create an Account.” Click this button, and you will be taken to another page where you can begin to enter your information.
The signup process involves just a few bits of your information. You will need to enter your name, your email address, your address and country, and perhaps a phone number. You will also need to select a currency.
The country is important. Although browsers and websites can see where you are located, many options brokers do not accept traders from certain countries. For example, because of stricter SEC regulations and past lawsuits, most brokers do not allow traders from the United States to use their services. In order to protect themselves, brokers need to be pretty strict about where traders come from.
This is smart for you, too. If a broker shouldn’t be allowing traders from your country for some reason or another, you shouldn’t use them. Even if you can sign up to trade with them, if it is not legal for you to do so, you will be exposing yourself to unnecessary risk as the broker will not be as able to protect your money and your information. Common sense says to stay away from a broker that isn’t licensed in your area.
Smart Traders create accounts with the best brokers
Funding an Account
Once you’ve created an account and submitted all of your information, you will not be able to start trading until you’ve funded your account. Most brokers offer a demo trading service, but only a handful of these will allow you to use the demo account if you have made a minimum qualifying deposit.
So, if you are interested in testing out the platform in real time for yourself, your only choice in most cases is to make a deposit. Most brokers accept three ways of funding: credit card, online wallet, or a wire transfer from your bank. Credit card payments are the fastest and simplest way to do so, especially if you are not making a larger than normal deposit. Credit card payments are quick and easy and most brokers do not charge a thing for you to use them.
Online wallets are also pretty simple to use, but not all universally accepted. Skrill and PayPal are very popular, but there are dozens of others of these available, and depending on the broker you use, these or others might be available to you. Many brokers also use BitCoin for deposits and withdrawal, but this is not yet a widespread method.
In some cases, a wire transfer is the best way. There is almost always a fee associated with this, but for large amounts of cash—typically more than $10,000—then a transfer is usually the best way. However, each method should be evaluated against your own personal needs so that you can really determine what’s best for you.
Creating an account is easy, but because of the multistep process, some traders are deterred. If you are interested in options, this doesn’t need to be an issue for you.