This article looks at the accounts you can get from forex brokers.
There are a number of different accounts that you can get from the forex brokers. It is important that you know the details of the different accounts and what they can offer you. You need to ensure that you are using the right account when you trade. If you are not using the right account the risks that you face could be much greater. When you trade with risks that you cannot handle you are going to lose more on the market than you make.
The Account Types
The first step to looking at the accounts that the forex broker offer is knowing which accounts you can get. There are three different accounts that you can get from forex brokers. There are some brokers that will offer you all of these accounts and others that only offer you a couple of them. The most common accounts that you can get are the standard account and the mini account.
The Standard Account Offered by Forex Brokers
The standard account that is offered by the brokers is the largest retail trading account that you can get. This account is best for traders who have experience on the market and the capital to buffer the trades. The standard lot is the lot size that you are going to be getting with this account. This lot size is 100,000 units and will have a pip value of $10.
The high value of the account means that you will have to have a larger amount of capital to trade with. The minimum deposit that you need for this account will vary depending on the broker you are using. The average deposit will be $1000 or slightly more. There are many brokers that require a deposit of $10000 to open the standard trading account.
The Use of the Mini Account
The mini account is the middle ground when you look at the accounts that you can get. This account offers the use of the mini lot which has 10000 units in it and a pip value of $1. The minimum deposit that you need for this account will be lower than the standard account, but higher than that of the micro account.
There are a lot of brokers that only offer the standard and the mini account. If you are going to be using a broker that does this then you will need to start with the mini account when you trade. The risks that you face with this account are lower than the risks you face with a standard account.
The Micro Account
The micro account is the smallest trading account that you can get. This account is recommended to new traders because of the small lot sizes and the minimal losses that you can face. The micro account offers the use of micro lots that have a size of 1000 units and the pip value of $0.10. The micro account is the best account to open when you make the move from demo account trading to live account trading. There are some brokers that will have the demo account listed as a self-service account.