A shares trading account is work in the real market and profit in real money

To start working in the financial markets with Dowmarkets, register a trading account, and gain access to the trading account management system.

In the online trading account management system, you will get:

  • deposit funds for trading and fill out applications for withdrawal of profits;
  • register new types of accounts and gain access to new trading platforms;
  • connect various services for active trading;
  • get free access to training;
  • participate in bonus promotions and programs.

What is a trading account?

To start working as a trader, the first thing you need to do is open a shares trading account. It begins with a pre-selected broker and is designed to record the movement of your funds as a result of the opening, closing and holding positions. To start online trading, you need to deposit money in the form of a deposit to the trading account.

The primary operations on shares trading accounts are buying and selling (opening long and short positions) for numerous financial instruments available for online trading. The website “Trader’s ABC” recommends that you first hone your skills on a demo account. So you can plunge into the world of the trading platform without risking your money.

Types of Trading Accounts

Currently, online brokers and dealers offer traders a wide selection of trading accounts. Forex dealers pamper us with such a variety. Thanks to this, today you can open an account for every taste and every wallet.

Classification by the size of the minimum deposit:

  • cent account;
  • standard trading account.

If before (in those dark times, when the Internet had not yet appeared), not every average citizen could afford to engage in trading, now this lesson is available to anyone. It is enough to have a computer connected to the global network.

You can start online trading with the so-called cent shares trading accounts, using a meager trading capital of a couple of dollars. Naturally, with such a size of the deposit, you do not have to rely on any earnings; however, you can get some experience in trading for real money.

A cent trading account can be used as a transitional link between trading on a demo account and selling on a standard trading account. You can increase the size of the cent account itself to such a level that it will allow you to earn quite decent money (although it is better, of course, to switch to another type of account that provides the trader with more attractive trading conditions).

  • Classification by type of processing trade orders:
  • STP accounts (Straight Through Processing);
  • ECN accounts (Electronic Communication Network).

Online brokers liquidity providers

The phrase Straight Through Processing (STP) in translation into Russian means: direct processing. That is, trading accounts operating on the STP principle provide the trader with the conclusion of transactions directly with one of the providers (suppliers) of liquidity working with the dealer or broker with whom this account is open.

Such liquidity providers are usually banks and other online brokers who place orders of their clients on the market. The more such providers your online broker (or dealer) has, the better trading conditions you have.

Trading in ECN format involves the withdrawal of all customer requests directly to the market, bypassing all intermediaries, liquidity providers, banks, etc., etc. This happens through the Electronic Communication Network. In this case, the trader receives the best price and can see all other orders that are in the stock market exchange at the moment. Another distinguishing feature of ECN trading is a relatively small, but always floating spread (it is precisely because the current price is formed from the best offers in the glass of costs).

Classification of trading accounts by various parameters

Classification by the method of execution of transactions:

  • instant execution;
  • market Execution.

On trading accounts with the principle of execution of transactions Instant Execution, orders are opened exactly at the price that took place at that moment in time when the trader clicked on the “Sell” or “Buy” button. In the literal translation from English, the phrase Instant Execution means – instant execution.

The main drawback of this type of execution of transactions is the so-called requotes. That is, at those times when the price moves as intensively as possible, the broker does not have time to open a position at the requested quotes and sends a request to the trader to open a transaction at a new price. In the case of sufficiently strong market volatility, such requotes can be repeated endlessly, never allowing the trader to enter a position (or, worse, close an existing position).

Accounts with the execution of transactions on the principle of Market Execution, suggest opening a position at the current price that exists. That is, for example, if the price on the market moves very quickly and the broker does not have time to open a position at the quotation that occurred when the trader clicked a button on his online trading terminal, he does not flood you with requotes, but simply opens a position by the price that currently exists.

Classification by storage location of the trader’s deposit:

  • trading accounts with a deposit kept on the balance sheet of a broker (dealer);
  • segregated trading accounts.

In the usual case, all the trader’s funds deposited by him as a deposit to his shares trading account are stored directly with the intermediary (broker or dealer) through whom he intends to trade. However, there is such an opportunity that allows, as they say, to ensure their money from the raking hands of dealers, who, sometimes, hiding under the guise of a respectable stable office, in reality only breed their clients for payment.

To one day not discover the disappearance of your trading deposit, along with the seemingly extremely trustworthy broker (or dealer), whom you had the imprudence to entrust, you can open a so-called segregated trading account.

Segregated accounts involve storing your trading capital outside the bins of the intermediary through which you are trying to trade. At the same time, your money is on your account in a reliable bank, and no one except yourself can use it in any way. It is only necessary to make transfers to your broker in time if the loss on open positions reaches the margin limits.

Trading with Dowmarkets Trading Accounts

Trade Stock CFDs exclusively from your Dowmarkets Stock Trading Account. We offer more than 180 trade stocks to choose from, increase your portfolio by taking advantage of our optimal online trading conditions, including fixed leverage of 1:10, zero commission and real-time data directly from two of the largest stock market exchanges in the world.

Dowmarkets receives quotes directly from NYSE and NASDAQ. Such a direct connection with exchanges means that you will trade in conditions of incredibly fast execution of orders and exceptional liquidity, which will undoubtedly positively affect the effectiveness of your trading.

Why open an account to trade CFDs on trade stocks?

  • trade more than 180 US stocks (the list of available shares is continually expanding);
  • get quotes directly from NASDAQ and NYSE;
  • fixed Leverage 1:10;
  • get dividend adjustments;
  • no commissions;
  • swap-free trading available;
  • trade using your Unique trading platform or XCritical platform.

Automatic trading

Automatic trading, also known as algorithmic trading, allows traders to develop a trading strategy or use an existing one. This strategy can later be applied in automated trading systems, such as, for example, Expert Advisors. Such a system automatically starts bidding for you according to the chosen strategy, thereby automating your entire online trading process. The most important advantage of such systems is that you do not need to worry that you will miss a favorable moment for trading if you suddenly get distracted for a minute. You can make a profit even if you sleep soundly, as your trading algorithm will work for you. However, it is worth remembering that, as in the case of independent trading, automatic trading can also cause losses.

Why you should choose Dowmarkets

Hurry up to take advantage of a unique offer to attract new customers: getting started with Dowmarkets has become even more comfortable with the ability to transfer open positions from any other brokerage company.

Offer the client to transfer his deposit and open orders to Dowmarkets and receive an additional trading bonus of 25%.

Draw your attention! An increased trading bonus of 25% is granted until March 2, 2018, and only when closing positions with another brokerage company.

After March 2, 2018, a standard bonus of 20% will be provided for all customers who have used this offer.

At Dowmarkets, your customers will receive the best trading conditions, and therefore, more chances for strong earnings:

  • the speed of execution of transactions from 30 milliseconds;
  • spreads from 0 pips;
  • eight classes of assets, more than 250 financial instruments for trade and investment: metals, indices, raw materials, goods, bonds, currency pairs, and cryptocurrency;
  • ready-made investment solutions: portfolios with CFDs on the global stock market, a pool of highly profitable forex strategies for copying;
  • trading signals and analytical reviews from recognized experts;
  • account replenishment without commission;
  • withdrawal of funds without commission every second Wednesday of the month.

Account transfer is carried out in three simple steps:

  • create a personal account and go through a simple online brokers verification procedure;
  • choose the type of account that suits you and replenish it in any convenient way;
  • send a letter requesting the transfer of a trading account to [email protected] or directly to your manager;
  • an increased deposit bonus will be credit cards immediately after closing positions in another company.

Advantages of a Single Trading Account:

  • minimum input threshold;
  • the minimum amount for opening a Single Trading Account is 30,000 rubles;
  • single margin trading rate;
  • the unified price for trading using borrowed funds 1;
  • securities stock trading;
  • all cash and securities are recorded in one account. You conclude one contract with a broker, within the framework of which you make trading operations against existing securities;
  • all trading platforms available.

Recommendations for choosing a type of trading account

Based on the above classification, we can give some general recommendations for selecting the kind of trading account.

If you have a relatively small amount of money, and your current goal is not so much earning as training in the trading process, then the cent account will be the best option credit cards for you. This type of account compares favorably with the demo in that, after all, the most real money is involved in the trade.

A cent account may not have the advantages that other types of accounts give a trader, but it will help you get the most out of the world of trading and get used to working with real money. In the future, after you gain enough experience in profitable stock trading, you can safely switch to another, more useful (and safe) type of account.

From the highest reliability and security, the best option would be a segregated trading account in the NDD format.

As for the choice between ECN or STP, here you should take into account the fact that the most significant liquidity will be provided to you by STP accounts (after all, it is they who bring the trader directly to the largest liquidity providers). Also, STP accounts offer traders trading with a constant (fixed) spread value.

Innovative technologies and methods of transaction execution

ECN technology allows traders to trade, including bypassing liquidity providers – even directly between each other. But here the problem of the lack of liquidity itself may arise, as a result of which the spread (formed by the price difference between the two closest counter orders in the exchange glass) can inflate to a reasonably fixed size. Therefore, decide for yourself what will be more essential for you in this case: consistently high liquidity and a constant spread or the ability to trade directly with other market participants using an exchange glass and, as a result, with a floating spread.

Now about the transaction execution method. If it is crucial for you to execute a transaction at this special price, then choose a trading account of the type Instant Execution. In this case, the broker will either perform the operation at the amount that you specified (at the price that was at the time your order was sent to the broker) or will ask you permission to open a position at a different, changed price (using a requote). This is especially true for scalpers who are trying to extract their profits from literally every point in the price movement.

How to decide on the choice of account

If the position opening itself is at the forefront, when you want to open it at any cost, regardless of the current price change, then you should give preference to accounts operating on the principle of Market Execution. In this case, the position will be guaranteed open (albeit at a price slightly different from the set), without throwing you requotes from the broker. This type of order execution is very relevant, for example, when using various kinds of arbitrage or hedging trading strategies, when you need to open a counter position in any case and as quickly as possible.

Well and whenever possible, try not to get involved with Dealing Desk (DD) trading accounts. Always try to work with those dealers and online brokers who provide the choice of the most significant number of types of accounts. This, most likely, will indicate that this intermediary has excellent capabilities and greater reliability (including due to a large number of compulsory licenses issued by various regulatory organizations).

Individual Investment Account (IIA)

Within the framework of the Unified Trading Account, an individual investment account is opened, through which you can perform operations and receive additional income. Also, on an IIS account, you annually receive a guaranteed tax deduction from the state in the amount of 13%. Additionally, FINAM JSC accrues a bonus on the free balance in rubles equal to 1/2 of the critical rate of the Central Bank of the Russian Federation.

Conclusion

When dealing with a broker of the forex or binary options market, you should always show a specific “mobility,” which is that you can always transfer your assets from one brokerage organization to another if you find that it will make economic sense. Therefore, if a particular Forex broker has launched some promotion that you found interesting, it may make sense to open a trading account with him and take advantage of the bonus offer. In this case, you do not have to “say goodbye” to your old broker forever. Show flexibility in making trading decisions and try to use all the benefits available to you!

Now you know more about the types of accounts and the principles of their functioning. All that remains for you is the choice of a worthy brokerage company for the implementation of everything that was planned with the accounts. It’s time for you to make sure that Dowmarkets is one of the most potent companies supporting cryptocurrency trading. Register on the official website for more useful information and incredible enrichment!

Posted: 2.07.2020 | Dawid Siłowacki
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