Do you know about Forex mini account ? Well, traders who are new to the foreign exchange market use it as a brokerage account. It is very good for the newbies who are interested in the foreign exchange market and are learning the process of trading. Investors can use this type of account to take a small position in a currency , instead of trading in standard lots used by the traders with regular accounts.
Beginners can use these forex mini account since it limits the amount of risk involved. With these kinds of accounts, traders are allowed to trade in contract sizes of 10,000 units instead of the standard 100,000. This type of account is one-tenth the size of a standard account. Forex mini account holders enjoy the same facilities like the standard account holders. They have access to the same tools like the regular traders such as trading platforms, charts and support.
Advantages of forex mini-account:
You require a less amount of capital in this type of account. If you have just started trading and do not want to go through a lot of risk, then this is the ideal account as per your requirements.
In this type of account, you have a greater control over risk. You can trade in mini lots instead of standard lots and by doing this, you are able to customize the trade and have better control over the risk involved. For example, if a forex trader wants to trade more than 100,000 units, but less than 200,000 units, he will not be able to trade like this in a standard account. But in the mini forex account, a trader can choose any lot sizes between 11 and 19, thereby reducing the total risk involved.
Retail forex brokers give a considerable amount of leverage while using mini-lots.
This type of account is the best for new forex traders because the investors take smaller currency positions and hence it reduces the amount of risk. Once you have gained enough experience, then you can upgrade your account to the standard one.