Mini Forex - features of trading on mini accounts
Very often in advertising of brokerage companies you can find the statement “Forex trading literally from scratch,” but this advertising phrase is sometimes quite far from the truth, because when trading, not only the initial deposit is important, but also the size of the minimum lot.
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 when conducting transactions and the execution of orders is not particularly different from trading on regular accounts.
In addition, if the minimum available volume of transactions for 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 less, that is, now the minimum lot forex is only 10 dollars. And this does not take into account leverage.
Why do you need mini Forex?
First of all, in order to get psychologically accustomed to trading with real money, and if a demo account is used to practice technical skills, then in mini Forex you are already using real money.
And although it’s only a couple of dollars, the difference is already noticeable. The second aspect of the application is testing a brokerage company; it is quite risky to immediately top up your account with a large amount if you are not yet confident in the quality of service.
It is better to first work on a cent account and personally evaluate all the advantages and disadvantages. This account option will also be useful for testing new strategies in real conditions without the risk of losing a lot of money.
In addition to the listed advantages, mini Forex has one big drawback: orders coming from mini accounts are executed last, so this type of trading is not recommended for strategies that require instant execution of orders.
Mini Forex is carried out through special brokers who have so-called cent accounts.
more about how to trade mini Forex at this link.