Differences in trading accounts

[mumuy]

The first thing to do before trading is to pick an excellent forex broker, after that you need to make your first deposit into your account. Mind you, there are different kinds of trading accounts that might be offered to you by your forex broker. Since it allows traders with different trading capital to open an account and execute their trading strategy with proper risk management.

Hence it is vital to choose a trading account that will suit your trading capital. Currently, there are three major forex trading accounts:

1. Standard account – This is the most common accounts used by traders, who has the sufficient capital. One lot in a standard account represents 100,000 units of the currency you would like to trade. Thus, 1 pip move is equals to $10 or whatever your account currency is.
2. Mini account- This account is best for traders you have less money to trade. This means that any account less than $10,000 is considered a mini account. Thus, one lot in a mini account represents 10,000 units of the currency you would like to trade; e.g. 1 pip equals $1.
3. Institutional account- This account is preserved for fund managers and corporations. The lot size are the same as the standard account, however spreads are lower due to higher trading volume.

 

[Rambo35]

Very good point. I think plenty of traders ignore making the proper choice when it comes to selecting their trading account and do not even consider how it can impact their trading. New traders should always start out in a mini account, at least in my opinion.

 

[mumuy]

Thanks, I do hope this thread can help new traders find there own forex broker. I agree, they should start small.

 

[PolinaPolly]

By the way, some brokers have Cent accounts, which means that your balance is in Cent: 1 lot equals 100 000 cent, that is 1000 USD. Very interesting offer for beginners, who feel confident on Demo account and want to go further, I believe.

 

[Miller.d43]

Trading account should be chosen carefully according to our trading style. broker offers various kind of trading accounts to its clients so that they can opt for what is more suitable for them.

 

[Ary Barroso]

The first thing to do before trading is to pick an excellent forex broker, after that you need to make your first deposit into your account. Mind you, there are different kinds of trading accounts that might be offered to you by your forex broker. Since it allows traders with different trading capital to open an account and execute their trading strategy with proper risk management.

Hence it is vital to choose a trading account that will suit your trading capital. Currently, there are three major forex trading accounts:

1. Standard account – This is the most common accounts used by traders, who has the sufficient capital. One lot in a standard account represents 100,000 units of the currency you would like to trade. Thus, 1 pip move is equals to $10 or whatever your account currency is.
2. Mini account- This account is best for traders you have less money to trade. This means that any account less than $10,000 is considered a mini account. Thus, one lot in a mini account represents 10,000 units of the currency you would like to trade; e.g. 1 pip equals $1.
3. Institutional account- This account is preserved for fund managers and corporations. The lot size are the same as the standard account, however spreads are lower due to higher trading volume.

After demo, traders need to start with micro then the standard one; since emotion plays an important role here.

 

[HeavenLeighGill]

Often times brokers offer different conditions on these types of accounts. Generally, the more you deposit, the better account type you can open. If you start with a small deposit, you would pay higher spreads and have less perks if the broker offers special promotions. I've even seen brokers that only offer their best customer support hours and options to those that sink a lot of money into their trading account. I think those with limited capital can often get a better deal if they open an account with a broker that offers one basic account type where everyone gets the same treatment, while those with thousands to invest would do better with a broker that offers VIP type accounts.

 

[JoshEvansFX]

The first thing to do before trading is to pick an excellent forex broker, after that you need to make your first deposit into your account. Mind you, there are different kinds of trading accounts that might be offered to you by your forex broker. Since it allows traders with different trading capital to open an account and execute their trading strategy with proper risk management.

Hence it is vital to choose a trading account that will suit your trading capital. Currently, there are three major forex trading accounts:

1. Standard account – This is the most common accounts used by traders, who has the sufficient capital. One lot in a standard account represents 100,000 units of the currency you would like to trade. Thus, 1 pip move is equals to $10 or whatever your account currency is.
2. Mini account- This account is best for traders you have less money to trade. This means that any account less than $10,000 is considered a mini account. Thus, one lot in a mini account represents 10,000 units of the currency you would like to trade; e.g. 1 pip equals $1.
3. Institutional account- This account is preserved for fund managers and corporations. The lot size are the same as the standard account, however spreads are lower due to higher trading volume.

Nice break down - I'd love an institutional account lol

 

[RaviTeja]

What are the main differences a trader should look into a trading account before live trading, and which one is best suitable for beginner traders?

 

[Jungletrader]

Most people start on a mini account and venture to standard.
As for Institutional well done to anyone that makes the transition

 

[TraderAlex]

So, after having a look through this thread.

Who are people currently using for their broker (s) of choice?

I'm on the hunt!

 

[no_frame]

Micro or mini is quite best if you are new to trading, since you can start with lower capital and make way to increase.
Standard account are your usual account in most forex broker, if you have some good experience in trading, you can go for that.

 

[no_frame]

Beginners prefer to start their trading career with only baby steps and they don’t want to put a lot of money into the markets yet. That's why micro account suits them the best.

 

[rickfx]

Some people simple don't have or don't want to commit a lot of money to forex trading so micro accounts are good for them.

 

[Trends555]

I'm in the mini league

 

[sharabela]

The first thing to do before trading is to pick an excellent forex broker, after that you need to make your first deposit into your account. Mind you, there are different kinds of trading accounts that might be offered to you by your forex broker. Since it allows traders with different trading capital to open an account and execute their trading strategy with proper risk management.

Hence it is vital to choose a trading account that will suit your trading capital. Currently, there are three major forex trading accounts:

1. Standard account – This is the most common accounts used by traders, who has the sufficient capital. One lot in a standard account represents 100,000 units of the currency you would like to trade. Thus, 1 pip move is equals to $10 or whatever your account currency is.
2. Mini account- This account is best for traders you have less money to trade. This means that any account less than $10,000 is considered a mini account. Thus, one lot in a mini account represents 10,000 units of the currency you would like to trade; e.g. 1 pip equals $1.
3. Institutional account- This account is preserved for fund managers and corporations. The lot size are the same as the standard account, however spreads are lower due to higher trading volume.

I use standard account. I have been using standard account for many years. When I started my live trading, at the beginning, I used mini account. It gave me the chance to feel the heat without losing that much real money. I believe traders should trade on demo account until they find a solid strategy. Then, they should switch to mini account. Once they are very confident and consistent, then they should start trading on standard account.

 

[reecerispoli1]

Micro or mini is quite best if you are new to trading, since you can start with lower capital and make way to increase.
Standard account are your usual account in most forex broker, if you have some good experience in trading, you can go for that.

Deffiently start of small if your a new trader

 

[e_abrams]

I agree. I think if you don't know what you are doing yet and investing a lot at the same time is probably not the best of ideas.

 

[fxbee]

Yeah, micro is way better than demo according to me (realized it later), real exposure - real fear.

 

[jimcarter]

Before starting trading, you should be aware of a few key differences between trading accounts. These account types can vary based on the broker you use, but here are some of the most common account types:

- Standard account: A standard account is the most basic type of trading account. With a standard account, you will have to pay the contract's full value when you enter into a trade.

- Margin account: A margin account allows you to trade with leverage. This means you can control a larger position than your account balance would allow with a standard account. However, it also means that your losses could be magnified if the market moves against you.

- Mini account: A mini account is similar to a standard account but with smaller contract sizes. This type of account is typically used by new or inexperienced traders who want to limit their risk.