Forex Trading With Micro Accounts

Trading foreign currencies online has created a wealth of opportunities for investors. Before the creation of the internet, currency trading didn’t provide as many options as they provide today. There are many different strategies and different types of Forex accounts that investors have to choose from. For example, there are demo accounts, live accounts, micro accounts, mini accounts, standard accounts and managed accounts. Each type of Forex account provides advantages to the investor. However, there are also some disadvantages to each account if the investor isn’t using the proper methods with trading currency online. New traders are encouraged to start using demo accounts and small accounts like micro and mini Forex accounts.

Micro Forex accounts are smaller than mini Forex accounts, where the investor is only required to open an account with 1/10th of the amount it takes to open a mini Forex account. Micro Forex accounts are designed for investors who want to make trades with a less amount of money. In fact, micro Forex accounts are heavily used by new traders who are taking the steps to become familiar with how the Forex platform works. Micro Forex accounts are around 1,000 units of a base currency while mini Forex accounts are 10,000 units of the base of a certain currency.

Micro Forex accounts can be started with as little as $25. On the other hand, a standard Forex account requires the investor to pay $2,500 in order to open up an account. The differences between a micro Forex account and a standard Forex account clearly shows that a micro account is basically for new traders. As the trader gains more experience with trading on the Forex platform, they will graduate to higher accounts. Each Forex account is used to get the trader warmed up to trading currencies online.

Starting a micro Forex account has many advantages that new traders will use while learning the intricate details with how to trade successfully. Less than $100 is needed to open up a micro Forex account and this type of an account will not break the bank of a new investor. Another advantage to micro accounts is the fact that multiple accounts can be opened in order to utilize different trading strategies in different micro accounts. Investors that utilize multiple strategies will use micro accounts instead of standard Forex accounts because standard Forex accounts will cost the investor more money to achieve multiple strategies.

Regardless of how little is needed to open up a micro account, the investor must realize their budget and financial goals with this type of account. Before opening a micro Forex account, a new trader should first open up a demo account. Once the trader has become comfortable with trading on the demo account, they should then graduate to opening a micro account. In other words, these different account levels are viewed as steps until the investor becomes a well rounded trader. Once the trader becomes successful and comfortable with the micro account, their next step up will be the mini Forex account.

Opening up a micro Forex account can be easily done online and only takes a few minutes. The trader will need to do some research with which Forex broker they would like to use, and then open up a new account. After that, the investor will fund their account in order to make trades. Since the account is a micro account, the trader can start out making small investments at a time. Once the trader has identified a strategy that works for them, they should continue on using the same strategy. Trading currencies online can be confusing, but if the investor takes the necessary baby steps, they will end up becoming more successful than jumping in head first.

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