In order to start trading Forex online with licensed brokers, you will be asked to submit your documentation during the registration process:
- A copy of your passport/ID, including your photo in color showing; full name, date of birth, passport/ID expiration date and passport/ID number.
- A utility bill showing your full name and full address.
- A copy of your credit card with only the last 4 digits showing, clearly stating your full name and the card expiration date.
A copy of your credit/debit card is not a necessarily document that you need to submit though, in case you are looking make a deposit through your card online, then you must submit it to your online Forex & CFD brokers.
Please note that documents(ID and Proof Address) need to be issued under your name. Licensed online Forex & CFD brokers cannot accept documents issued for someone else. Even your family or legal partners cannot replace your legal documents.
These two documents are very important ones to start trading Forex and CFDs, and all regulated brokers do require them to you.
Why ID and POA are required by licensed brokers
Regulated online Forex & CFD brokers are required by law to confirm the identity of all of their traders.
For this reason online Forex & CFD brokers may ask from you to provide them with the relevant documentation.
These steps are taken to protect both the traders and the company.
All regulated brokers do require these two documents to you in order to go through required KYC(know your client) process.
Basically you can not start trading Forex and CFDs without these documents.
Some unregulated brokers offer you a trading opportunity without any documents though, there is always a reason why they are not regulated, you wouldn’t make a deposit to a broker which doesn’t follow any kind of laws.
Unaccepted documents for account verification
The documentation is uploaded during the registration process.
Afterwards, it is checked by their compliance team.
Your broker will notify you about any missing documentation.
Also, if you know that some of the required documentation are missing, you can upload them at a later stage.
Mainly a licensed broker requires you to submit two kinds of documents, which are ID and POA(Proof of Address).
Both of the documents need to have your name on it, and up-to-dated.
In case you are looking to deposit through credit/debit card, then you will also need to submit a copy of your card(but not all parts).
For more information, please contact your online Forex & CFD brokers support desk directly.
Why brokers ask my Forex experience during registration? Does that affect my trading conditions?
Generally speaking, the more they know about your level of experience, the more they can help you trade effectively.
Keep in mind that traders have different levels of trading expertise and thus, may need different tools and support to trade.
Your trading experience does not matter whether you are able to open an account or not, as long as you understand the risk of investments.
Online brokers want more clients and money of course, thus even if you have got Zero experience and knowledge of Forex, they may accept your account opening request.
So you do not need to lie about your trading experience.
Commission for Deposit and Withdrawals
With many brokers, there is no fees charged regarding to fund transfers.
You can deposit and withdraw your funds from your trading account without any extra commissions.
Please note that the fees charged from the payment providers, such as Banks, Neteller etc, need to be covered by yourself.
For example, if you make a deposit/withdrawal via international wire transfer, you may get charged about more than 20 USD from the corresponding banks.
Normally, online Forex & CFD brokers do not charge for holding trading accounts. No account management fees at all.