The best account type for professional stock trading
The longer you trade, the more you are amazed at how many important nuances there are in this business.
Most newbies, when starting to trade, first focus on choosing a broker, without giving much thought to the account they will be trading on.
But this question is just as important, as the number of account options available to choose from is expanding every day, and the right decision can impact the amount of profit you receive.
Depending on your goals, you can open the following types of real accounts with a broker: cent, standard, ECN, VIP or PRO, PAMM, and Segregated.
It should be noted that if you had one trading account open upon registration, nothing prevents you from opening another one that better suits your requirements.
Cent, Micro, Nano – as the name suggests, these accounts are designed for micro trading, using cents (microlots) instead of whole units:
That is, the balance is displayed in cents, and one lot is 100 times smaller, amounting to just $1,000 for Forex. These accounts are for training purposes and are not available at all brokers - https://time-forex.com/centovye-brokery
The Standard account is the most frequently opened by traders. It offers more attractive trading conditions than the Cent account and has lower deposit requirements.
The "standard" account is ideal for opening small to medium-sized trades, as well as testing the services provided by the brokerage company.
ECN - Electronic Communication Network, means that all transactions are carried out without broker intervention in a fully automated mode:
Opening such an account requires a minimum of $300, but the order execution conditions are better than with the standard account. Brokers with ECN accounts - https://time-forex.com/vsebrokery/ecn-brokery
VIP and PRO are used primarily to attract large clients to a broker due to the high level of service provided.
They offer the fastest execution speeds, tightest spreads, and a dedicated manager who practically brings you coffee. However, the initial deposit starts at $500 and can reach tens of thousands.
PAMM accounts – in my opinion, PAMM is the best option for any trader who has decided to trade professionally on the stock exchange:
This is the most promising account, as trading on a PAMM account allows you to increase your trading volume by attracting investor funds, and with your own capital of $1,000, you can manage a deposit of $1 million. Brokers with PAMM accounts - https://time-forex.com/pamm-brokery
A segregated account is a rare type of account among traders, as it's rarely offered by brokers. The idea behind a segregated account is that your funds are held in your bank account and a deposit is opened with the broker against them.
This completely eliminates the risk of losing funds due to brokerage company bankruptcy, as your funds remain in your bank account. However, the initial deposit for such accounts starts at $50,000.
A broker that allows you to open a segregated account is https://time-forex.com/vsebrokery/segregirovannyy-schet
As you can see, the choice is quite wide, but I would recommend opening PAMM accounts, as this will allow you to significantly increase your trading volumes without using high leverage or increasing the level of risk.
