Forex trading attracts investors from all over the globe and allows competing with large banks. A single trader can receive great earnings from Forex trading, although it is crucial to pick a suitable account for this. Each of the account types has its own pros and cons, and it is important to select the best trading account based on your requirements, initial capital, the amount of risk you want to take, and more.

Standard Trading Account

This is the most common type of a Forex account. A 100 dollar deposit is necessary to open this account. Traders gain access to the standard currency lots of 100 thousand dollars with this kind of account. Here are the features of a standard account:

• Brokers offer a wide selection of services and benefits for the standard account owners;
• Using a standard account allows gaining about 1000 dollars a day, but the same amount can be lost in case there are unfavorable conditions on the market;
• The leverage involved in standard account trading is up to 1:3000.

This is why opening such accounts is advised to more experienced Forex traders. Trading with a standard account is highly competitive and you need to evaluate the risks in order to receive profits. However, there is no commission involved.

Cent account

Opening a cent Forex account is the best strategy for novice traders. Having a cent account allows starting your trading journey with only one dollar and without commissions. A 1:1000 leverage is in place, meaning that ten dollars can be controlled while owning a single cent. This kind of Forex account is convenient for low-risk trading. However, even experienced Forex traders can make use of such accounts for the purpose of practicing and checking new strategies. The cent account requires the smallest deposit of all other Forex accounts to start trading. The spread is floating with a cent account, although it starts from 1 pip, as opposed to the standard account with 0,5 pip.

Micro account

A micro account requires an initial deposit of only five dollars. This Forex account type does not have a commission as well. This type of trading account is convenient for those Forex users that want to know every detail about their earnings. Thanks to the convenient trading tools, it is possible to calculate all the profits precisely. This is also a suitable solution for beginners in the Forex market. While it is a little bit more expensive than a cent account, it is still pretty low-risk. Micro accounts support up to 200 open positions and orders, just like a cent account.

Conclusion

Half of the success in the Forex market depends on choosing an appropriate trading account just for you. Each account is more suitable for specific traders based on their skill, knowledge, starting capital, etc. The beginner traders should opt for the following accounts:

• Cent account;
• Micro account.

While the standard Forex account type is the most common, it involves higher risks and is recommended for those traders with some experience.