Faded Border

1: Open up the picture you want to have the faded border. I'll be using this one:

2: Now, go to Image>>Image Size. A pop-up will appear.

3: Now set the document to these settings (Height and Width should be the same as the image you're using):

4: Go to the picture you're using and drag the picture to the transparent document using the move tool (Press V on your keyboard).

5: Now, go to the Rectangular Marquee tool (Press M on your keyboard). Make sure that the Feathering is only 10px.

6: Focus on the main character and use the Rectangular Marquee tool to draw over it like this:

7: Right click on your image and click on Select Inverse.

8: Then click on the Delete button on your keyboard. Ta-da! Your picture should turn out like this:

If you have any questions, just post!