If you haven’t noticed yet let me enlighten you about a variety of choices forex accounts. Some forex brokers only offer two – demo account for practicing your forex skills with virtual money and a real account where you trade with real cash. However, some forex brokers offer more than that. So before you start chocking on the amount of forex account options out there, let’s take a look at some variety of account types.
Review of Forex Brokers Account Types
The so called “Mini Account ” is usually favored by beginners in forex trading since the minimum deposit requirements could be as low as $1. Of course we all welcome the small amount of investment, but usually mini accounts are accompanied by higher pip spreads. So if your agenda is to trade with tight spreads such as 3 pips or lower mini account terms will most probably disappoint you. Besides spreads mini account might have different leverage options, less currency pairs to choose from, smaller trading lot size, different margin requirements, different trading platform or less trading tools and even less support.
Standard forex account requires a higher deposit but it is usually accompanied with traditional trading platform with 24 hour assistance, low margin requirements, nicer leverage options, higher amount of currency pairs, and last but not least much lower spreads.
And finally we have the fancy accounts! Most of them even have fancy names such as Gold, Platinum or VIP. The minimum deposit for such accounts varies, but it usually not less than $10,000. With large deposit comes great power and by that I mean VIP treatment. VIP forex traders enjoy tailor-made reviews, hedging and trading consults, special trading tools, charting, fundamental and technical analysis, tips and recommendations from trading coaches, financial tutors and individual forex account manager who will attend your most desired trading needs (or so we hope!)
Keep in mind that higher deposit requirements do not guarantee the quality. There are many forex brokers that promise lots and give you less then nothing. Do your homework before you sign up for any account – check the requirements, double check terms and conditions and look through the features and options.