FOREX TRADING ACCOUNTS
Most brokers offer a wide array of trading accounts and different platforms.
In almost every one of them, you will find a demo or practice account that
will allow you to get acquainted with their platform’s particular characteristics and implement
your strategies in a safe environment without the risk
of losing any of your funds until you are totally confident about the
Real-money accounts are diversified to allow traders of any skill level
and capitalisation to start their trading career in the measure of their capabilities.
The smallest trading accounts you can find are the micro- or mini
accounts, where the starting capital required is usually very small (ranging
from $25 to $500) and where there are certain limitations as to the number
of lots traded. Almost all brokers offer a very high leverage on those starter
accounts, which ranges from 100:1 to as much as 500:1.
In mini- or micro accounts, you can trade mini lots, which represent as
little as 1/10 of a standard lot ($10,000) or 0.1 lot, with a small margin
requirement, yielding $1 per pip. Some brokers even allow trading of
micro-lots, which are 1/100 of a standard lot or 0.01 lot, at a value of 10
cents per pip or nano-lots ($100), which represent a value of approximately
1 cent per pip.
Among standard accounts, some brokers allow only regular full standard
lots ($100,000), whereas others add the option of trading fractional or mini
lots. The initial capital requirement for standard or professional accounts is
much higher, ranging from $2000 to $50,000 and more, with different levels
in between, as well as added benefits or limitations, particularly with respect
to leverage, which is usually not higher than 100:1.