Mini Forex - Features of Trading on Mini Accounts
Brokerage company advertisements often include the phrase "Forex trading from scratch," but this advertising phrase can sometimes be quite far from the truth, as when trading, it's not just the initial deposit that matters, but also the minimum lot size.
In this case, mini Forex or trading on cent accounts comes to the rescue, allowing you to gain invaluable experience without risking large sums.
Mini Forex (mini forex) – trading on the foreign exchange market using special accounts with a lot size reduced by 100 times and, accordingly, the trader's deposit currency.
At the same time, there are no significant technical differences in the execution of transactions, and order execution is no different from trading on regular accounts.
In addition, if the minimum available volume of transactions in other types of trading is at best 0.01 lots or 1000 units, then on mini forex you can trade with a volume exactly 100 times smaller, that is, now the minimum Forex lot is only $10. And that's without taking leverage into account.
What is mini forex for?
First and foremost, it helps you get used to trading real money psychologically. While a demo account is used to practice technical skills, with mini Forex you're already using real money. Although it's only a few dollars, the difference is noticeable.
Secondly, it's a good way to test the brokerage company; it's quite risky to immediately deposit a large sum if you're unsure of the service's quality. It's better to first try trading on a cent account and evaluate its advantages and disadvantages firsthand.
This account type is also useful for testing new strategies in real-world conditions without the risk of losing large sums.
In addition to the advantages listed above, mini Forex has one major drawback: orders received from mini accounts are executed last, so this type of trading is not recommended for strategies that require instant order execution.
Mini Forex is available through specialized brokers with cent accounts.
For more information on how to trade mini Forex, follow this link.
