Which account to choose for Forex.

Typically, the beginning of Forex trading is characterized by the choice of a broker; novice traders devote a lot of time and effort to this issue, but an equally important point is the choice of account option.

In practice, there are about ten options for trader accounts, each of which is designed to solve specific problems.

The choice is made immediately, but there may be several accounts, so it’s not scary if you make a mistake at first. The size of the spread and the requirements for the minimum deposit that must be made to start trading depend on the type of account.

• Demo account - a training account that does not require an initial deposit, trading is carried out with virtual funds, you can specify 100 dollars or even a million in its settings.

Sometimes virtual funds can be converted into real ones by participating in various competitions on demo accounts with real prizes. The main task is to study the capabilities of the trading terminal, its technical capabilities and learn how to open transactions.

The only drawback of such accounts is that the sense of danger is lost; the following account option is suitable for practicing trading skills and testing strategies.

• Cent accounts - here you are already working with real money, but the turnover is 100 times less than on standard accounts.

Trading takes place using micro lots where the minimum transaction is only $10. True, this type of account is not present in every company; to open such an account you need - Cent brokers .

Typically, cent accounts have wide spreads and slower order execution than Standard accounts.

• Standard - the name speaks for itself, you will find such an account with any broker, the initial deposit can range from 1 to 1000 dollars.

Everything is average here - spreads, order execution and other trading conditions, ideal for operations with deposits from 100 to 1000 dollars.

• ECN accounts are a fully automated trading system, one of the best trading options; as a rule, spreads are lower than on Standard accounts, and execution speed is higher.

There are also fewer requotes and slippages. Such accounts are opened with ECN brokers .

• VIP - designed for clients with large deposits, everything is the best here - the best spreads, the best execution speed, a personal manager and other additional bonuses. True, in order to open such an account you need from $10,000.

• PAMM is actually a standard or ECN account, but with open statistics and the ability to attract investor money, it is suitable for traders who are confident in their abilities, since only consistently profitable trading can attract investor money. Read more about these types of accounts in the PAMM investing .

If you are just starting to trade on the stock exchange, open accounts in the same sequence as indicated in the article; you should not immediately risk large sums by rushing to attractive trading conditions.