Forex Micro and Mini Account

Online Forex brokers offer "mini" and "micro" trading accounts, some with a minimum account deposit of $300 or less. It doesn't mean that you should open immediately an account with the bare minimum but it does makes Forex much more accessible to the average individual who doesn't have a lot of start-up trading capital.

If you were just a starter and still learning about Forex Market, a good idea for you would be what is called the Forex mini and micro accounts.

Mini Account is trading with mini lot sizes, generally 10,000 units of the base currency. It is great for those who want to start off with a fairly low investment. It is more realistic option for smaller businesses that would like to get involved in the world market with very little available.

Micro Account is trading with micro lot sizes, generally 1,000 units of the base currency. As the very name suggests micro forex accounts are meant for small small investors and individuals who like to participate in the international currency trading. It will give individuals and small scale investors a chance to experiment with currency trading without making huge investment in the currency trading market.

Most brokers offer very small “mini-accounts” and even smaller "micro-account" for as little as a couple hundred bucks. These little cute accounts are a great way to get started and test the traders trading skills and gain experience. They are good ways to get your feet wet without drowning.

By starting with these accounts, a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy. In the long run, this will lead to much better trading results.

Other advantage of trading with these accounts is that traders are allowed flexibility in regards to customizing the trades and minimizing the risks.

Mini and Micro forex trading are a good way to start trading Foreign Exchange Market most especially for starters with a small amount of money. A trader can test various forex trading system without a lot o risk, keep good records and refine the trading techniques.

As the trading improves and you build your portfolio, a trader can graduate from mini forex trading to larger and more typical forex trading contracts with confidence that you have a profitable trading system in place.

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Michael said...

I think it's vitally important to start on one of these mini accounts, and use it at least for a year or two. Until you've gained enough experience to move to a bigger account.

Great post

Bhing said...

@Michael - Most professional traders advised newbies to start from these accounts, most especially those who doesn't have experience on trading..

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