The best account type for professional stock trading

The longer you spend trading, the more surprised you become at how many important nuances there are in this matter.

Most beginners, when starting to trade, first of all pay attention to choosing a broker, without particularly thinking about what account they will be trading on.

But this question is just as important, since the number of account options available to choose from is expanding every day, and a correctly made decision can affect the amount of profit received.

Depending on your tasks, you can open the following types of real accounts with a broker - cent, standard, ECN, VIP or PRO, PAMM and Segregated.

There are other names, but in general the classification is quite similar. Let’s try to figure out why each type of account is needed and which one to open in a particular situation.

It should be noted that if you had one of the trading accounts open during registration, nothing prevents you from opening another one that better suits your requirements.

Cent, Micro, Nano - as the name already implies, such an account is designed for micro trading; instead of whole units, it uses microlot cents:

That is, the balance is displayed in cents, and one lot is 100 times smaller and is only 1000 dollars for Forex. These accounts are intended for training and not all brokers have them - https://time-forex.com/centovye-brokery

Standard is the account most often opened by traders, has more attractive trading conditions than a cent account, and does not have high requirements for the size of the deposit.

The “standard” account is excellent for opening transactions of small and medium volumes, as well as testing the services provided by the brokerage company.

ECN - Electronic Communication Network, implies that all transactions are carried out without broker intervention in a fully automatic mode:

To open such an account, you already need an amount of 300 US dollars, but the conditions for executing orders on it are better than in the standard option. Brokers with ECN accounts - https://time-forex.com/vsebrokery/ecn-brokery

VIP and PRO – are used primarily to attract large clients by the broker due to the high level of service provided.

Here you have the fastest execution speed, minimal spreads, and an individual manager who almost brings coffee to your home. It’s true that the initial deposit amount starts from $500, and sometimes reaches several 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, since by trading on PAMM you can increase the volume of transactions by attracting funds from investors and, having your own capital of $1,000, manage a deposit of 1 million. Brokers with PAMM accounts - https://time-forex.com/pamm-brokery

Segregated account – few traders have heard of this type of account, since it is quite rare to find it with brokers. The essence of a segregated account is that your funds are in an account with your bank and a deposit is opened with a broker for them.

This allows you to completely eliminate the loss of funds due to the bankruptcy of the brokerage company, since your money remains in the bank account.
True, the initial deposit on such accounts starts from $50,000. A broker that allows you to open a segregated account - https://time-forex.com/vsebrokery/segregirovannyy-schet

As you can see, the choice is quite wide, but I would recommend opening a PAMM account, as this will significantly increase trading volumes without using large leverage and without increasing the level of risk.