Maximum balance on micro account question

[MisterAudio]

I have an odd question. Why is the balance limited to $3000 on a micro account instead of a more reasonable level of around $10000 or at least $5000 before killing the leverage? It makes more sense to me to have one standard account that has the specifications of the standard account except with the ability to trade the lot sizes of the micro.

[FXOjafar]

The $3000 limit is set because once you get to that level, a standard account is more suitable. If you want to keep building your account to more than $3000, you can transfer the funds to a standard account and keep trading.

[kuekpeow]

The $3000 limit is set because once you get to that level, a standard account is more suitable. If you want to keep building your account to more than $3000, you can transfer the funds to a standard account and keep trading.

I tried explaining in another reply that the gap from micro to standard account is too large, from 1 000 units per lot increased to 100 000 units per lot. If my micro account has $2 999, I can open 60 positions of 0.5 lots with comfortable free margin level at 4 900%. However, if I convert to standard account and still need to open 60 positions with comfortable free margin level at 4 900%, even if trading at minimum lot size of 0.1 lots, I will need $60 024 in my account. However the problem is I only have $2 999, and since I cannot find $57 025 for topup for to standard account, the only method is to open many micro accounts as my account grows, but it will be unmanageable if I need to open up to 21 micro accounts, just because of the $3k limit.

Please consider lifting the micro account cap to $60k, if not consider allowing minimum lot size of 0.01 in standard account.

Calculations shown below...

1. Micro Account (each lot is 1 000 units):

(a.i) If account balance below $3k (Capital=$2999), account leverage 1:500.
(a.ii)If buy 60 * 0.5 lots = 30 000 units, used margins 30000/500=$60, available margins 2999-60=$2939.
(a.iii) Investment leveraged by 30000/2999=10 times.
(a.iv) Available margins leveraged by 30000/2939=10.2 times.

(b.i) If account balance exceed $3k (Capital=$3001), account leverage reduce by 100 times to 1:5.
(b.ii) If buy 60 * 0.5 lots = 30 000 units, margins required 30000/5=$6 000.
(b.iii) To achieve same available margins leverage 10.2, account balance need to be 6000+2939=$8 939 (required capital)
(b.iv) Required capital's investment leveraged 30000/8939=1.1 times only.
(b.v) Required capital's profit/loss is reduced by 10/1.1=9.1 times.

2. Standard Account (each lot is 100 000 units):

(a.i) Account leverage 1:500.
(a.ii) If buy 60 * 0.1 lots (min lot size) = 600 000 units, required margins 600000/500=$1 200.
(a.iii) To have same available margins leverage 10.2, account balance need minimum 600000/10.2+1200=$60 024 (required capital)

3. If 3k limit exists: Start with 1 micro account. Grow until $2999 then open 2nd micro account. Grow until $5998 then open 3rd micro account. ... Grow until $59 980 then open 21st micro account. Grow until $60 024 then close all 21 micro account and open 1st standard account.

[Paul75]

The $3000 limit is set because once you get to that level, a standard account is more suitable. If you want to keep building your account to more than $3000, you can transfer the funds to a standard account and keep trading.

Thanks to share actual reason behind it. I also was not familiar with it.