Different types of forex trading account are developed in order to cater to needs of different forex traders. In general, there are three types of commonly-used forex trading accounts: forex micro account, forex mini account and standard account. Then what the difference among the three types of forex trading accounts and how to make choice from them? The answer will be demonstrated below:
Forex trading account No.1: forex micro account
If forex traders want to experience a live trading environment with a very small amount of money, forex micro account is a good choice. Mirco account allows traders to trade micro lots. A microlot is one hundredth of a standard lot. (One standard lot is 100,000 units of currency). So a micro account allows traders to trade 1,000 units of currency. In general, micro account lowers the threshold of market entry to the greatest extent. Forex micro account is a type of forex trading account popular with small forex investors and those who want to try out newforex trading strategy under real market condition.
Forex trading account No.2: forex mini account
Forex mini account is another type of forex trading account for forex traders who want to fund their account with small amount of money. A mini account allows traders to trade mini lots, which is 1 tenth of the size of a standard lot. So a mini account allows traders to trade 10,000 units of currency. A mini account is suitable for account balances over $10,000. Most forex brokers allow forex traders to open mini account. But do not believe those who promise traders to open a mini account with an extremely small amount of fund. Nearly all these accounts end up with a margin call. Mini account is a forex trading account suitable to forex beginners or traders who want to try their luck in forex trading but do not want to invest much money in forex trading account.
Forex trading account No.3: standard account
Standard account is the type of forex trading account designed for more experienced traders. Almost every top broker like IKON provides standard account. With a standard account, traders are able to trade 100,000 units of currency, 10 times of a mini account and 100 times of a micro account. Due to bigger lot and leverage used, forex traders using standard account are prone to get more profit or experience catastrophic losses. So a forex beginner without much experience should think twice before trading with standard account. Standard account is a type of forex trading account suitable to experienced forex traders.
Forex trading account No.4: forex managed account
Forex managed account is the online managed account service which specializes in managing the assets of account owners by independent money managers using an asset-based fee structure. We know that forex trading is popular and profitable. However, some traders fail to find enough time to trade and do not have the patience and skill to generate long term returns, especially in times of high volatility. A forex managed account offers private individuals participation in the forex market and the potential high returns without the need to spend the countless hours. But do not believe such announcements as getting rich overnight.
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