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LESSON: How I Arrange My Trading and Bank Accounts

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]The way I manage my trading accounts and also bank accounts is very simple but not something many actually use.

As I stared to go through at the start of this module, the reason I do this is for very specific reasons and if you are trading live, then I highly suggest you begin to think about the types of measure for not just Forex accounts, but banking accounts.

Why?

Broker accounts are a huge amount of our trading costs. We first need to make sure we have the best, safest broker who is best setup for our needs.

In my trading account I only have enough cash for 3-5 trades. Why do I do this?

• Although brokers are regulated to a point, I feel much safer having large amounts of money in safer investments such as banks.
• Brokers are paying me zero for having my surplus money with them. I may as well use the money not being used to make more money such as earning interest from a high interest savings account or term deposit etc

I then have 3 separate bank accounts.

1. Living expenses (3 months worth of living expenses – you may not have this just yet, it is better having what you do have not sitting in the Forex account).
2. Account replacement capital
3. High interest Saving account/term deposits/other investments

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