Forex Account Types

When new traders make the decision to finally start investing online, they will have already heard of a few ways to get started. It all begins with gathering as much information as possible and then finding a broker that will help with the management of accounts and the platform for trading. What many new traders do not know is that there are different types of Forex accounts that can be used. Here, we discuss these accounts and provide the information that will help new traders decide which is best for them.

The accounts offered will vary in regards to lot sizes, deposit requirements and margin requirements. Each is designed to cater to a specific group of investors. The size of a transaction will also depend on the type of account held. One of the types is a Mini Account. This is the best option for new traders and there are low deposit requirements. Many brokers will allow a mini account to be opened with $200. These accounts also have a Guaranteed Limited Risk, which means that no trader will ever lose more than what has been invested.

Standard Accounts are those that have higher deposit limits and many brokers set the deposit minimum at $2,000. With these accounts, there is a leverage ratio of 200:1. This type of account also offers the Guaranteed Limited Risk feature. Standard accounts also have a lower spread and better leverage that one would have with a mini account.

Managed Accounts are the VIPs of accounts. They are commonly referred to as Platinum or Gold accounts. The minimum deposit for these accents is quite large, typically around $10,000. There are some great benefits to these accounts. Traders will not have to do all the work regarding the assessment of the market. The broker will place a professional trader on the account and that trader will use the money in the account to conduct the best possible trades.

Traders will always be able to select the type of account that suits their needs and most brokers will offer all three types. Each account is set up to offer the best chances at the highest profits. Take these accounts into consideration when choosing a broker since not all will offer all three types.

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