What Are Types of Accounts? - What are the Different Types of Accounts?
What Type of Account is Best for You? - Different Types of Accounts
What Are Types of Accounts? - What are the Different Types of Accounts? - Types of Accounts There are 3 Types of Accounts that forex traders can choose from when opening a forex trading account, these are:
The two common Account Types are: Standard Account Micro Account
Forex Accounts - Different Types of Accounts - Types of Accounts
1. Standard Account - Types of Accounts
A Standard trading account is denominated in US Dollars and trading transactions are placed using standard lots provided for by standard account forex brokers. One forex standard lot is equivalent to 100,000 units of currency. 1 lot is also referred to as 1 contract. Minimum forex account opening capital for standard account is - at least $10,000 USD.
1 standard lot or 1 contract refers to the minimum lot size of a single trade. This standard account is the most suitable for forex traders with a enough capital to trade in the account - this standard account option requires between $10,000 to $50,000 dollars in starting capital, for this standard trading account the trader will not be undercapitalized and with good forex equity money management rules and forex equity management strategies, this standard account has the highest chance for profitability because it is not under capitalized. Under capitalization is what makes most online traders not profitable in forex.
It is not recommended to open a standard trading account unless you have a forex account balance of at between $10,000 minimum and $50,000.
Professional Money Managers recommend $50,000 minimum forex capital to open this standard account and only opening 1 or 2 lots maximum per every $50,000 dollars you have in your forex trading account. However, most online forex trading brokers still-will open this standard account for you if you have more than $10,000 capital.
2. Micro Account
Micro Account uses lot sizes of only 1,000 units of currency provided for by micro account forex brokers. Micro account is often appropriate for forex traders without a lot of capital and micro accounts can be opened with only a $100 minimum forex equity balance.
Micro account option allows forex traders to open trades using forex micro lots. 1 micro is one- tenth of a mini lot and one-hundredth of a standard lot.
Forex traders can register of any of these forex accounts by choosing the account type that they prefer when they are opening their forex account from the different forex account options provided by heir forex broker.
