Tips to funding your forex trading account

So, you’ve decided to take the plunge after producing a 1000% return in your demo account or you’re giving it another go because you think the US stock market is finally going to take a plunge; either way, the following are three simple tips to get that extra bang for your buck when funding your forex trading account.

1. Rack up those miles – Many forex brokers will allow you to make fee-free deposits via credit card. If your deposit is a purchase (best to check with your broker just to be sure) then make sure you get the most miles/reward points by funding with an optimized card that gives you credit for every dollar you spend.  The kicker? Find out if you can make a withdrawal back to your card within your interest free period (30 – 60 days), then re-fund after the period is over awarding you even more miles. Rinse and repeat.

 

• Use an online remitter to fund your account – If your broker doesn’t take credit/debit card or the fees are too steep if they do, considering funding the account using an online money transfer company instead of a standard wire transfer through the bank. Online money transfer companies offer excellent exchange rates and charge virtually no fees. Competitive companies will process a transfer within 24 hours and charge about 80% less than local banks. More established and well-known remitters are a little more expensive, but offer more transfer channels. Consider only regulated and well-reviewed businesses.

 

• Receive rebates and discounts on spreads – Companies such as cashbackforex have been around for a while, but their longevity is a testament to the value they provide. Many brokers are hooked up to schemes like this as they allow the ability to rebate part of the spread or IB commission back to the trader. They clip the ticket on the rebate and as true middlemen, they are all free. Although Cashbackforex is the most recognized, shop around to get the best rebates; cashbackcloud and globegain are good options too.

 

Margin trading is hard enough without all the various fees biting away at your capital from all sides. Remember to avoid foreign exchange where possible and look around for transparent brokers who won’t hit you with hidden costs. Good luck!