Classifications of Forex Trading Accounts

Classifications of Forex Trading Accounts
April 12th, 2009 by Forex Admin Filed under Forex day trading, Forex trading,Online forex trading.
Simple classification of Forex Trading Accounts

Individual Account: When transactions are done only for you, then it is referred as an individual account. This account can be a ‘non-discretionary’ type where only you have the right to make decisions and a broker must get your prior permission or sanction to carry out any transactions, or it can be a ‘discretionary’ account where you give the right to make decisions on your behalf to a broker or any third party.

Commodity Pool: Here the trade is executed on behalf of a group of individuals who trade commodities by means of a ‘commodity pool’. You have to purchase a share in the pool and the transactions are made for the pool as a whole and not based on the interests of an individual. And likewise, the profit or loss is shared by the entire pool.

Before making transactions you should:

• Set your goals and be aware of your capabilities to invest and handle a risk or loss.

• Know the extent of help you need from a trading advisor and signals to make decisions.

• Check the reputation and registration status of the advisor with the National Futures Association.

• Obtain and review the disclosure document before opening a trading account.

• Not hesitate to ask any question regarding trading that you do not understand or have doubts.
Tags: forex trading accounts
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