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

For the past two or three years, you've literally stumbled across Forex trading ads. The internet is flooded with offers to open an account and start trading Forex with a deposit of "just" $300-500. These are especially aimed at beginner traders, who are 99% likely to lose their first deposit.

If you want to try your hand at forex trading, it's best to open a cent account; you can trade with just a few dollars, and losing them won't significantly impact your budget.

A cent account is used for the following purposes: practicing real trading, testing forex strategies, checking the performance of indicators and trading advisors, and rarely for making money.

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

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

Unfortunately, not all brokerage companies offer cent account trading; specialized cent brokers .

Trading on cent accounts is based on the following parameters:

The account currency is cents, with one unit equal to $0.01. This means that by depositing just $10, you'll have 1,000 cents in your balance.

Micro lot – the minimum lot size for trading is typically $0.001 or $100. Clearly, a trade of this size, using 1:100

leverage, The spread is typically slightly wider than on standard or VIP accounts, but this is understandable, as the broker makes virtually no profit from such trades, and the system still requires a significant load.

differences , and you can open all order types and use various scripting options. However, cent accounts typically have larger spreads, fewer assets available for trading, and slower order execution speeds.

A real opportunity to make money

A cent account doesn't necessarily require a few dollars; some trade with deposits of several hundred. The main reason traders choose this account type is the ability to freely manipulate trade volumes.

For example, with a $100 deposit, opening a 0.1 lot trade is quite risky, as just one Forex pip will result in a $1 loss under unfavorable circumstances. However, with a 0.01 lot, the risk is lower, but the chance of profit still exists. A profit of 30 pips on a single trade will earn you around $3. And by making several dozen such trades, you can double your deposit.

Using cent accounts is also an excellent testing ground for strategies and expert advisors. The risk is minimal, and trading is done with real money, so even if an unsuccessful robot loses your deposit, the damage will be insignificant.