Since forex has become increasingly popular in recent years, the search of traders for the best forex accounts is inevitable. However, if you go and google “best forex accounts”, congratulations, you’re an idiot. There is no universally best forex account. There are different levels of trade, which require different features and supports from forex brokers. Therefore, forex brokers will create many different account types to suit the needs of each level. You should search for the best forex accounts for your level. In today article, I will talk about different forex accounts and show you which level of traders suits each one.
Every broker has demo account. It is a showcase of which features that broker has and how good their platform is. Demo account is good. It’s the best free way for you to test the features and operating system of a broker.
By making use of forex demo accounts, traders will be able to experience forex market as well as apply their strategies without any risk. In reality, it is quite hard for many traders to understand the ins and outs of forex trading market because of the lack of experience. Obviously, they might grasp the understanding of currency pairs easily. In general, demo accounts allow traders to test forex trading market without thinking about any risk. It is a good chance for them to apply their trading strategies and consider whether their trading strategies are really effective. Forex demo accounts, in fact, are free of charge and really safe. It’s because traders do not need to use their real money in order to make transactions. They will use virtual money to make transactions instead. Demo accounts enable traders to place trades in a real trading environment with the supply of demo trading credits.
It is clear that demo account will help you test forex trading market but you cannot gain any profit. However, you will be able to get many beneficial things when it comes to the use of demo account. You have a chance to master forex trading environment thanks to demo accounts.
Brokers have different names for this account but most of them call it Mini or Micro. This account type suits beginners in forex trading. The common features are:
Low minimum deposit
Traders at this stage are still in doubt about forex trading, so they would not want to put too much money in it at first. That’s why these accounts have really low minimum deposit requirement to attract new traders.
Since the main target is starter, brokers tend to go easy on them. They have really low spreads so that traders will feel more comfortable trading this account.
Maximum volume position
The pros always come with the cons. Because of the good trading features, traders can open too many positions on this account. The maximum position they can open is usually 100. Also, the contract size is relative small for this account type.
Low margin call
Margin call is when the broker thinks you’re about to lose all your money, they cancel your trades. To prevent you from losing everything, brokers put a margin call on how much you’ve lost and decide to put a stop to your trades. Some brokers put it really low, like under 50% sometimes.
This account type is for experienced traders. Traders who have traded forex for more than 6 months will be confident enough to switch to this account type. At this stage, Standard account fits their needs and requirements more.
Now, the contract size is bigger (usually 10 times bigger than Micro accounts). Brokers offer them higher leverage (which also means higher risk) but traders at this stage are more aware of the risk so they will trade more carefully with high leverage. The spreads don’t increase much from Micro accounts, which makes Standard accounts the most chosen account in the forex market. The maximum position is usually a lot more. Whether the minimum deposit stays the same or rises really depends on the broker. Most good brokers don’t charge more deposit requirement.
Now this account is exclusively for experts and professionals. If you haven’t made an impressive win streak, don’t think about trading this account. It’s because the risk now is even higher and it requires much more money to trade this account. Normally, all ECN accounts will charge commission, because the spreads of this account type can be as low as zero.
The minimum deposit is much, much higher, up to hundreds or thousands of dollars. There’s often no maximum position. The margin call can be up to 100%.
Demo account is the best forex account for testing. Mini/Micro account is the best forex account for beginners. Standard account is the best forex account for normal or experienced traders. Finally, ECN account is for the pros only.
Synthesized by top4forexbrokers.net