How to open an account to trade CFDs
If you want to trade contracts for difference (CFDs), one vital step is opening a trading account. Without one of these, you won't be able to trade.
So where do you start?
Read on to find out what you need to do…
Where to open you CFD trading account?
If you’re serious about trading CFDs
, you need to find a company to trade them through.
You have two options:
Open an account with a stock broker offering CFD trading; or
Open an account with a trading company offering CFD trading.
The process of opening an account with both of these options is similar. The main difference is the amount of money you need to open the account with.
Through a stock broker, you’ll need to deposit a minimum of R10,000 to be able to trade CFDs. With a trading company, you may be able to open an account with as little as R2,000.
How to open a CFD trading account
Once you’ve decided who you want to trade CFDs through, you need to open an account. You may be able to do this online.
When you apply, you need to provide your personal information. Then you need to supply FICA documents.
FICA documentation includes:
A certified copy of your ID;
Proof of your physical address;
Proof of your income tax number; and
Proof of your banking details.
How to trade CFDs
Once you have your CFD trading account up and running, you’ll have access to a trading platform. This will allow you to put on trades and manage open trades.
Most brokers and trading companies will also allow you to place trades over the phone, if this is what you’d prefer.
If you’re new to trading, some trading companies have online demo accounts for you to use. These give you a chance to practice your trading strategy before risking any of your own money.
So there you have it. How to open an account to trade CFDs.