CLASSIFICATION 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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