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View Full Version : What is Forex mini account?



fxman789
03-27-2008, 07:36 PM
If you are new to Forex market or want to start with low investment then Forex mini account is ideal for you. You can open a mini account with as little as $250 whereas the regular Forex account requires a minimum capital of $2500.

The good thing is that owners of mini accounts dont suffer from any trading disadvantages. A mini account gives them the same benefits that the regular Forex account gives to large traders, like free trading platform, small spreads, etc.

Whats more a mini account also comes with the added benefit of leverage. A trader who has a mini account needs to deposit only $50 as the margin deposit for a $10,000 lot trade. This gives the trader a leverage of 200 to 1. Nothing can be more convenient than this because it allows a trader to trade more in a commodity than he has money in his account.

Another advantage is that a mini Forex contract size is usually 1/10th the size of the standard contracts where lot sizes are usually 100,000. This reduces the potential loss of a trader. For instance, a Forex trader holding a regular account will loose $250 if he sets a 25-pip stop loss. The loss for a mini account trader for a similar strategy will be $25 because the value of a mini lot is 1/10th of the standard lot.

Consequently, the smaller trader has more flexibility in customizing the size of the trades and managing the risk. Thus the traders who want to trade with less than $1,000 will do better business by opening a mini account. This will give them more flexibility in implementing different strategies and more staying power in the Forex market since they will be able to take advantage of multiple trades without suffering debilitating losses. Mini account is the ideal option for small traders.
by forexsage.com

omobaorun
03-28-2008, 01:03 PM
that's a good lecture,but know that is not all that are interested in fx that can start with $250,that's why brokers like fxopen are there for low starter with as low as $1 to start trading,which will also help some traders to build their confidence.

forumplace
05-13-2009, 04:29 PM
Yup, mini account with low minimum deposit is good for small scale trader like me.