Several types of accounts are opened in the Forex market. Most start with a demo account. Here they learn to use the terminal, make trading operations, conclude deals, and work out strategies. Professionals recommend starting with a demo account to get comfortable with Forex.
- Cent account. This account is intended for performing minor trading operations. Real money, even small ones, teaches you how to properly manage your account. It is impossible to lose significant capital, but the loss of even a small amount is psychologically palpable. The cent account is used to hone strategies.
- Micro or Mini is a standard account that has minimum deposit requirements. Most often, it ranges from several hundred to several thousand dollars. There are exceptions, though. Usually, the minimum and small lot volumes are traded.
- Classic. This is an account for professional market speculators. Significant deposits in the thousands of dollars are made. They are almost always traded in dollar terms. The broker must be chosen taking into account the reviews of other traders and after carefully studying the offered conditions. A mistake can result in a serious loss of capital.
- About. The minimum investment amount is ten thousand dollars. Traders who are eligible to use a pro account earn more than their less affluent counterparts. The downside – increased risks
What currency should I open a trading account in?
It is better to open the first trading account in one of the popular world currencies. After gaining sufficient experience, you will be able to select a different base currency for your new trading account, if necessary.
- USD. The US dollar is the most popular currency to trade in Forex. An additional “plus” of the dollar account for beginners is that most of the training materials are focused on working with USD.
- EUR. Euro is the base currency of the account is convenient for residents of the European Union – you can replenish the balance or withdraw earned money without additional conversions. However, this currency is not as common as the US dollar.
Choosing a broker
Even though the choice of a broker is a separate topic, it is important to mention it in the context of opening an account, since initially, the user needs to choose the optimal trading platform. When looking for a broker with whom you can open an account for trading on the Forex market, you can come across a large number of offers, so compare forex brokers should be followed first.
It is recommended to pay attention to the proposal of large companies for the following reasons:
- Have a long history of providing services;
- Provide quality software;
- Risks are insured;
- They take care of the formed opinion about the quality of the services provided;
- They can hire qualified employees.
Many of them are active online, placing advertisements on the Internet, sending out messages by e-mail, some even call the mobile numbers of potential investors. However, it is impossible to conclude whether a broker is suitable for certain trading conditions only by advertising, since the information disseminated by the company itself is aimed at attracting customers, and not familiarizing them with the features of the services provided.