Which account to choose for Forex.

Beginning forex trading typically begins with choosing a broker. Beginning traders devote a great deal of time and effort to this matter, but choosing an account type is no less important.

In practice, there are approximately ten different types of trader accounts, each designed to address specific needs. The choice is made immediately, but there may be several available, so it's safe to make a mistake at first.

The account type determines the spread size and the minimum deposit required to begin trading.

• Demo account - a training account that does not require an initial deposit, trading is conducted 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 contests on demo accounts with real prizes.

The main goal is to study the capabilities of the trading terminal, its technical capabilities and learn how to open trades.

The only drawback of such accounts is that a sense of security is lost; the next 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 is carried out using micro lots, where the minimum transaction is only 10 dollars.

However, this type of account is not available in every company; to open such an account, you need - Cent brokers .

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

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

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

• ECN accounts - a fully automated trading system, one of the optimal trading options, as a rule, spreads are lower than on Standard accounts, and the execution speed is higher. Also, fewer requotes and slippage occur.

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. However, to open such an account you need from 10,000 dollars.

• A PAMM account is essentially a standard or ECN account, but with open statistics and the ability to attract investors' funds. It's suitable for confident traders, as only consistently profitable trading can attract investors' funds. Read more about these account types in the PAMM investing .

If you're just starting out, open accounts in the order described in the article; don't immediately risk large sums on attractive trading conditions.