Why do you need a Cent Account and its main differences?

For the last two or three years, you have literally come across advertisements for Forex trading; on the Internet there are a lot of offers to open an account and start trading on Forex with a deposit of “only” $300-500, and this is offered to novice traders, who in 99% will lose their first deposit.

If you want to try your hand at trading on the currency exchange, it is better to open a cent account; you can trade on it with just a few dollars, the loss of which will not cause much damage to your budget.

A cent account is used for the following purposes: training in real trading, testing Forex strategies, checking the operation of indicators and trading advisors, and rarely for making money.

Some of the above can be done on a demo account, but you yourself must understand that it is impossible to learn to drive a car by practicing on a computer toy.

Yes, a demo account is as close as possible to real trading, but the influence of psychological factors is almost completely excluded.

Unfortunately, not all brokerage companies provide the opportunity to trade on cent accounts; special cent brokers .

Trading on cent accounts is carried out according to the following parameters:

Account currency is cents, one monetary unit is equal to 0.01 US dollars, that is, by replenishing your account with only 10 dollars, you have 1,000 cents on your balance.

Micro lot - usually the minimum lot when making transactions here is 0.001 or 100 dollars, it is clear that to complete a transaction in such a volume using a leverage of 1:100, only one dollar is enough.

The spread is usually a little larger than on standard or VIP accounts, but this is understandable; the broker earns practically nothing from such transactions, and the load on the equipment is still there.

differences ; you can also open all types of orders and use various script options. But as a rule, cent accounts have a larger spread, a smaller number of assets available for trading, and a slower order execution speed.

Real opportunity to earn money

A cent account is not necessarily a sum of several dollars; some trade with deposits of several hundred. The main reason why traders choose this account option is the ability to freely manipulate the volume of transactions.

For example, with a deposit of $100, opening a deal of 0.1 lot is quite risky, because just one Forex point will already bring a $1 loss under unfavorable circumstances.

But with a lot of 0.01 it’s a completely different matter, the risk is less, and the probability of making money still exists; having made a profit of 30 points from one trade, you will earn about 3 dollars. And after making several dozen such transactions, you can double your deposit. Using cent accounts is also an excellent testing ground for testing strategies and advisors, the risk here is minimal, and the work is carried out with real money, so even if an unsuccessful robot drains your deposit, the damage will be insignificant.