Different Types of Forex Trading Accounts

Different Types of Forex Trading Accounts

With the abundance of forex trading firms available online, traders nowadays could now easily select a broker of their choice. Once they’re officially registered, they are provided with a selection trading accounts such as Mini, micro and standard accounts. These accounts offer different services that can be beneficial to traders.

The first example of a trading account is the Mini Forex Account. This account allows traders to enter a certain position with 10% of the average lot unit of 100,000 units. This means that traders who opt for this account can access the market with just 10,000. They are given the authority to trade a position of 100,000 base units.

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Trading Accounts act as a platform for traders who wishes to perform the said activity. There are different kinds and each has their own unique advantages and nature.

Mini Forex Account can do trades with small amount of capital with high leverage. Nonetheless, leverage varies from one broker to another. High leverages can lead to higher risk which makes profit generation quite perilous.

Brokers also offer Micro Accounts. Here, traders can perform trades with 1000 units or lots. As an advantage to traders, they can enter the market with a smaller amount of deposit. This can allow them to strategize more on their investments before moving with larger size investments.  This account is one of the most recommended types for traders who are seeking for experience, especially the new ones. Risks here are much lesser than usual.

Lastly, the most common type is the standard account. They can access various forex pairs of 100,000 base units. This account type is much more beneficial than the other types as they as brokers offer more services with this option. However, traders are to deposit a certain amount of money before beginning trades.

These are just some of the most common type of accounts. Some firms offer certain basic themes to their clients that may not be available with others. Read here to know more about the qualities of a good broker.

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