ActiveTrades: A Comprehensive Guide to Trading the Markets
ActiveTrades is a leading online broker offering a wide range of financial instruments and trading platforms. Whether you’re a seasoned trader or just starting, understanding how ActiveTrades works is crucial for maximizing your trading potential. This comprehensive guide will walk you through every step, from account setup to executing complex trading strategies.
## What is ActiveTrades?
ActiveTrades, established in 2001, is a multi-asset broker regulated by multiple authorities, including the Financial Conduct Authority (FCA) in the UK and the Securities Commission of the Bahamas (SCB). This regulation provides a level of security and trustworthiness for traders. ActiveTrades offers access to a variety of markets, including:
* **Forex:** Trade major, minor, and exotic currency pairs.
* **Indices:** Trade global stock market indices like the S&P 500, FTSE 100, and DAX 40.
* **Commodities:** Trade precious metals (gold, silver), energy (oil, natural gas), and agricultural products.
* **Shares:** Trade stocks from major global exchanges.
* **Cryptocurrencies:** Trade popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin (availability may vary based on jurisdiction).
ActiveTrades provides multiple trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and its own proprietary platform, ActiveTrader. Each platform caters to different trading styles and preferences.
## Step-by-Step Guide to Using ActiveTrades
Here’s a detailed walkthrough of how to get started and trade with ActiveTrades:
### 1. Account Registration
The first step is to create an account on the ActiveTrades website. The registration process is straightforward and typically involves the following:
* **Visit the ActiveTrades Website:** Go to the official ActiveTrades website ([https://www.activtrades.com/](https://www.activtrades.com/)).
* **Click on “Register” or “Open Account”:** Look for a button that says “Register,” “Open Account,” or something similar, usually located on the homepage or in the top navigation bar.
* **Fill Out the Registration Form:** You’ll be prompted to fill out a registration form with personal information, including:
* **Full Name:** Your legal first and last name.
* **Email Address:** A valid email address that you have access to.
* **Country of Residence:** The country where you currently live.
* **Phone Number:** Your mobile or landline number.
* **Date of Birth:** Your date of birth.
* **Address:** Your residential address.
* **Create a Password:** Choose a strong and secure password that you can remember. It’s recommended to use a combination of uppercase and lowercase letters, numbers, and symbols.
* **Select Account Type:** ActiveTrades usually offers different account types (e.g., individual, corporate). Choose the one that best suits your needs. Standard accounts are usually preferred for individual retail traders.
* **Choose Trading Platform:** You may be asked to select your preferred trading platform (MT4, MT5, or ActiveTrader) during registration. You can typically use multiple platforms with the same account.
* **Read and Accept Terms and Conditions:** Carefully read the terms and conditions, privacy policy, and risk disclosure statement before proceeding. Make sure you understand them fully. Check the box to indicate that you agree.
* **Submit the Registration Form:** Once you’ve filled out all the required information and accepted the terms, click the “Submit” or “Register” button.
### 2. Account Verification
After submitting the registration form, you’ll need to verify your account. This is a standard procedure for all regulated brokers and is done to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. Verification typically involves providing the following documents:
* **Proof of Identity (POI):** A clear and valid copy of a government-issued photo ID, such as:
* Passport
* Driver’s License
* National Identity Card
* **Proof of Address (POA):** A recent document (usually within the last 3-6 months) that confirms your residential address. Acceptable documents include:
* Utility Bill (electricity, gas, water, internet)
* Bank Statement
* Council Tax Bill
* **How to Upload Documents:**
* **Log in to Your ActiveTrades Account:** Use the email address and password you created during registration to log in to your account on the ActiveTrades website.
* **Navigate to the Verification Section:** Look for a section labeled “Verification,” “Account Verification,” or something similar in your account dashboard or profile settings. There’s usually a notification prompting you to verify if the verification is pending.
* **Upload the Required Documents:** Follow the instructions on the page to upload the required documents. You may need to scan or take a clear photo of your documents. Make sure the documents are legible and that all the information is visible.
* **Submit the Documents:** Once you’ve uploaded all the required documents, click the “Submit” or “Verify” button.
* **Verification Time:** Account verification can take anywhere from a few hours to a few business days, depending on the broker and the volume of applications they are processing. You’ll usually receive an email notification once your account has been verified.
### 3. Funding Your Account
Once your account is verified, you can fund it with trading capital. ActiveTrades offers various deposit methods, including:
* **Bank Transfer:** Transfer funds directly from your bank account to your ActiveTrades account. This is a common and secure method, but it can take a few business days for the funds to clear.
* **Credit/Debit Card:** Deposit funds using your credit or debit card (Visa, MasterCard, etc.). This is usually a faster method than bank transfer, with funds typically clearing within minutes.
* **E-Wallets:** Use e-wallets like Skrill, Neteller, or PayPal to deposit funds. E-wallets offer convenience and security, and funds are usually credited to your account instantly.
* **Other Methods:** ActiveTrades may offer other deposit methods depending on your location.
* **How to Deposit Funds:**
* **Log in to Your ActiveTrades Account:** Use your email address and password to log in to your account on the ActiveTrades website.
* **Navigate to the Deposit Section:** Look for a section labeled “Deposit,” “Fund Account,” or something similar in your account dashboard.
* **Choose Your Deposit Method:** Select your preferred deposit method from the available options.
* **Enter the Deposit Amount:** Enter the amount you want to deposit into your account. Make sure you meet the minimum deposit requirement (if any).
* **Follow the Instructions:** Follow the on-screen instructions to complete the deposit process. This may involve entering your credit card details, logging in to your e-wallet account, or providing bank transfer information.
* **Confirm the Deposit:** Review the deposit details and confirm the transaction. You may need to enter a verification code or password to authorize the deposit.
### 4. Choosing a Trading Platform
ActiveTrades provides a selection of trading platforms to cater to different trading styles and experience levels.
* **MetaTrader 4 (MT4):** A popular and widely used platform, MT4 is known for its user-friendly interface, extensive charting tools, and support for automated trading through Expert Advisors (EAs). It’s a good choice for both beginners and experienced traders, especially those interested in Forex trading.
* **MetaTrader 5 (MT5):** The successor to MT4, MT5 offers more advanced features, including more technical indicators, timeframes, and order types. It also supports trading in a wider range of markets, including stocks and futures. MT5 is a good choice for more experienced traders who want access to more advanced tools.
* **ActiveTrader:** ActiveTrades’ proprietary platform, ActiveTrader, is designed for speed and efficiency. It offers advanced charting tools, one-click trading, and customizable layouts. It is best suited for experienced traders who want a fast and responsive platform.
* **Downloading and Installing the Platform:**
* **Log in to Your ActiveTrades Account:** Use your email address and password to log in to your account on the ActiveTrades website.
* **Navigate to the Platform Download Section:** Look for a section labeled “Platforms,” “Trading Platforms,” or something similar in your account dashboard.
* **Choose Your Platform:** Select the platform you want to download (MT4, MT5, or ActiveTrader).
* **Download the Installer:** Click the download button to download the installer for your chosen platform. Make sure you download the correct version for your operating system (Windows, macOS, iOS, Android).
* **Run the Installer:** Once the download is complete, run the installer file. Follow the on-screen instructions to install the platform on your computer or mobile device.
* **Log in to the Platform:** Once the installation is complete, launch the platform and log in using your ActiveTrades account credentials (account number and password). You may need to select the correct server (e.g., ActiveTrades-Live, ActiveTrades-Demo) when logging in.
### 5. Understanding the Trading Platform Interface
Familiarize yourself with the trading platform’s interface. Here’s a breakdown of the key components:
* **Market Watch:** Displays a list of available trading instruments (currency pairs, indices, commodities, etc.) and their current prices. You can add or remove instruments from the list and customize the display.
* **Chart Window:** Displays the price chart for a selected instrument. You can choose different chart types (e.g., candlestick, line, bar), timeframes (e.g., 1 minute, 1 hour, 1 day), and technical indicators (e.g., moving averages, RSI, MACD).
* **Order Window:** Allows you to place orders to buy or sell instruments. You can choose different order types (e.g., market order, limit order, stop order) and set parameters like volume (lot size), stop-loss, and take-profit levels.
* **Account Balance:** Displays your account balance, equity, margin, and free margin. This information is crucial for managing your risk and ensuring you have enough capital to support your open positions.
* **Terminal Window:** Shows your open positions, pending orders, trading history, and news alerts. You can use this window to monitor your trades and track your performance.
### 6. Placing a Trade
Now, let’s go through the process of placing a trade on the ActiveTrades platform. This example will use MT4, but the principles are similar across different platforms.
* **Select an Instrument:** In the Market Watch window, find the instrument you want to trade (e.g., EUR/USD). Right-click on the instrument and select “Chart Window” to open a price chart for that instrument.
* **Analyze the Chart:** Analyze the price chart to identify potential trading opportunities. Use technical indicators, chart patterns, and fundamental analysis to inform your trading decisions.
* **Open the Order Window:** Click the “New Order” button on the toolbar or press F9 to open the Order window. Alternatively, right-click on the chart and select “Trading” -> “New Order.”
* **Configure the Order:**
* **Symbol:** The instrument you’re trading (should be pre-selected).
* **Volume:** The size of your trade (in lots). A standard lot is 100,000 units of the base currency. A mini lot is 10,000 units, and a micro lot is 1,000 units. Choose the appropriate volume based on your risk tolerance and account size.
* **Stop Loss (Optional):** The price level at which your trade will automatically close if the price moves against you. This is used to limit your potential losses. Enter the price level or select it on the chart.
* **Take Profit (Optional):** The price level at which your trade will automatically close if the price moves in your favor. This is used to lock in your profits. Enter the price level or select it on the chart.
* **Order Type:**
* **Market Execution:** Your order will be executed immediately at the best available price.
* **Pending Order:** Your order will be placed at a specific price and will only be executed if the price reaches that level. There are several types of pending orders:
* **Buy Limit:** An order to buy below the current price.
* **Sell Limit:** An order to sell above the current price.
* **Buy Stop:** An order to buy above the current price.
* **Sell Stop:** An order to sell below the current price.
* **Place the Order:**
* If you’re using Market Execution, click the “Buy by Market” or “Sell by Market” button to place your order immediately.
* If you’re using a Pending Order, click the “Place” button to set the order. The order will remain pending until the price reaches the specified level.
### 7. Managing Open Positions
Once you’ve placed a trade, it’s important to monitor and manage your open positions.
* **Monitoring Your Trade:** Watch the price chart and keep an eye on your account balance, equity, and margin levels. Be aware of any news events or economic data releases that could affect the market.
* **Modifying Stop Loss and Take Profit:** You can modify your stop loss and take profit levels at any time to adjust your risk and reward. To do this, right-click on the open position in the Terminal window and select “Modify or Delete Order.”
* **Closing a Trade Manually:** You can close a trade manually at any time by clicking the “Close” button in the Terminal window. Alternatively, right-click on the open position and select “Close Order.”
### 8. Risk Management
Risk management is crucial for successful trading. Here are some essential risk management techniques:
* **Use Stop-Loss Orders:** Always use stop-loss orders to limit your potential losses on each trade. Determine the appropriate stop-loss level based on your risk tolerance and the volatility of the instrument you’re trading.
* **Calculate Your Position Size:** Calculate your position size carefully to ensure that you’re not risking too much capital on any single trade. A common rule of thumb is to risk no more than 1-2% of your account balance on each trade.
* **Use Leverage Wisely:** Leverage can amplify your profits, but it can also amplify your losses. Use leverage cautiously and avoid using excessive leverage, especially if you’re a beginner.
* **Diversify Your Portfolio:** Don’t put all your eggs in one basket. Diversify your portfolio by trading a variety of instruments and markets to reduce your overall risk.
* **Stay Informed:** Keep up-to-date with market news, economic data releases, and geopolitical events that could affect your trading decisions.
### 9. Utilizing ActiveTrades’ Resources
ActiveTrades provides a variety of resources to help traders improve their skills and knowledge.
* **Educational Materials:** Access articles, e-books, videos, and webinars on various trading topics, including technical analysis, fundamental analysis, risk management, and trading psychology.
* **Demo Account:** Practice trading in a risk-free environment using a demo account. This allows you to test your trading strategies, familiarize yourself with the platform, and learn how the markets work without risking any real money.
* **Market Analysis:** Read daily market analysis reports, news commentaries, and trading signals from ActiveTrades’ team of expert analysts.
* **Customer Support:** Contact ActiveTrades’ customer support team via phone, email, or live chat for assistance with any questions or issues you may have.
### 10. Advanced Trading Strategies
Once you have a solid understanding of the basics, you can explore more advanced trading strategies.
* **Scalping:** A short-term trading strategy that involves making small profits from small price movements. Scalpers typically hold positions for a few seconds or minutes.
* **Day Trading:** A short-term trading strategy that involves opening and closing positions within the same trading day. Day traders typically don’t hold positions overnight.
* **Swing Trading:** A medium-term trading strategy that involves holding positions for a few days or weeks. Swing traders aim to capture larger price swings.
* **Position Trading:** A long-term trading strategy that involves holding positions for several weeks, months, or even years. Position traders focus on fundamental analysis and long-term trends.
* **Algorithmic Trading:** Using computer programs (Expert Advisors) to automate trading strategies. This allows traders to execute trades based on pre-defined rules and parameters without manual intervention.
## Conclusion
ActiveTrades provides a robust platform and a comprehensive suite of tools for traders of all levels. By following this guide, you can navigate the platform effectively, manage your risk prudently, and develop successful trading strategies. Remember to always practice responsible trading and stay informed about the markets.
**Disclaimer:** Trading financial instruments involves risk. You could lose all or part of your initial investment. This guide is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.