Forex Trading Accounts

If you have decided to try hand at Forex you need to open a trading account that is going to be a sort of storage of all your transactions. You won’t be able to make a deal and use the profit made unless you have an account where the money could be credited to.  

Most brokers require depositing certain funds in a trading account before getting down to trading. The amount of these funds depends on the type of account and, consequently, on the terms and conditions of trading the broker will provide you with.          

All Forex accounts could be divided into three categories: Micro, Standard and ECN. Each of them has its own specifics and is applied for different purposes depending on the trading strategy you follow.

Micro account is often related as cent account as it requires the minimal deposit of $1. What is really convenient is that you can perform trades of 0.1 micro lot. So, you will hardly incur huge losses if you take Micro account where 1 pip is approximately equal to 1 US cent. It's important to note that you need a special trading strategy. This Forex account would especially suitable for newbies who have little knowledge in this sphere. How to open a Micro account and what Micro broker to choose check in our other articles.

Experience traders would prefer Standard accounts as they require a low start-up deposit and allow using various strategies such as scalping, news and algotrading.  

With ECN accounts you have a direct access to the interbank market where you can make deals with other traders introducing their own orders.