Online trading is one of the most lucrative business options all over the world which in fact has the largest market worldwide. Opening a Forex account is easier than it seems. Even with a meager amount of money and just a hi-speed internet connection you can start trading with your Forex account. While you need to choose from amongst a huge number of online brokers, you would also come across various types of Forex accounts each offering distinct options and features. These accounts are generally classified as demo account, mini account, micro account, standard account and premium account.
Demo account is the one that is set up to attract large number of customers so that small traders can get a taste of the opportunity of trading in the Forex market. In fact, a huge number of online brokerage firms provide demo accounts or practice accounts, as these are usually called. It takes minimal effort to open a demo account and it comes free of cost mostly. These accounts are offered features of a liveForex account; however, there is no trading with real money. Traders get ample scope to test their skill before they step into the live business. They get guidance and training from the technical analysis and the diagnostic features of the market that a demo account offers.
Mini and micro accounts refer to those accounts which are provided to the traders willing to start on a small scale but in real time. With mini and micro accounts such traders gain live experience from the opportunities they are offered with relatively less money and consequently less risk involved. A mini account is usually opened with a minimum deposit of $ 1,000 and bears a base currency of 10,000 units.
A micro account needs minimum of $ 1 to get opened and here the base currency bears the size of 1,000 units. These two types of Forex account enables the traders to analyze their own performance and also that of the broker involved, the effectiveness and proficiency of the online trading platform they work with.
Apart from these, there exists the standard account. You can open such an account with $ 1,000. You would find most brokers offering an initial deposit of $ 10,000 with standard accounts.
A premium or a VIP account is not provided by all Forex brokers. The ones that do this often demand a deposit that amounts minimum of $ 10,000 and maximum of $ 100,000. With this account, direct service is offered to the trading desk of the broker. But here, with increased leverage, the level of risk involved is also high.
While you are on with your Forex account, you would find that a huge number of Forex brokers would compete for you. This calls for a good volume of research before you commit any money. You should start off by shopping for a broker prior to your visit to discussions platforms of Forex. You would get in touch with other traders talking about the brokers they have appointed and the service they are getting from them. You should also consider carefully whether your broker is a market-maker or a non-dealing desk broker. You should know how the orders that you place would be handled, whether through electronic systems or through dealing desks. This is how Forex account can influence your trading and enable you to make profits.