There are many types of account offered by brokers but not all accounts have the same advantages. Each account has some benefits and some disadvantages but that should not concern you. It is your responsibility to choose the account that best goes with your account size, your risk capacity and also with what you can afford. As you cannot scoop out the bad from good, you will always have some risks in your account. This article is going to tell you how you can select the account that is best for you. The Forex accounts are divided into three types. They are mini, standard and managed accounts. We will talk about these all the accounts and you will decide what is best for you. Do not be influenced by the pros and cons because they are only a benefit that will not help you for long. It is you who knows better how much you can progress from these accounts.
The mini account
First, we will start with the most popular account in Forex. It is the mini account and almost all the traders like this account. It is also known as the micro account for its smaller size. You deposit a very small amount but still, it offers the great benefits of Forex. If you are not sure what is going to do in this industry, we advise you open a mini account. You cannot lose much as you have deposited little but still, the benefit of leverage allows you to play big trades. People do not have a fixed plan when they deposit for the first time. They are only informed about the rewards but the risky parts are hidden from them. As they trade on a mini account, they get adapted to the trends and volatility that help them in their future career.
Novice traders should always try to understand the details of spread betting platforms. Unless you know about the premium of advanced trading tools, things will be really difficult for you. For instance, some of you might be waiting for a long period of time only for a certain trade setup. But if you know the proper use of pending orders, you can easily set your trades with predefined stop loss and take profit level. This will save a huge amount of time in the long run.
The standard account
This is the account that is best suited for the rich and smart professional traders. From the name, you can guess that you need to deposit a handsome amount to get started. Most standard accounts start with a minimum deposit of thousand dollars. Though the amount is big, it still offers many advantages like the mini accounts. What makes it stand out is the amount of money you invest and the risks you take. Everything is big in standard account just like Texas.
The managed account
It is the account that is better to avoid. The name suggests that this account is managed by a third party and that is your broker. Your broker operates in your account and places the trades. Imagine your money is being managed by some person that you do not know and trust. Busty and rich people deposit for managed accounts as they want to take a share of the sweet profit but not the risks and practice. If you have time and money, you should go for the mini account. It is less risky, the deposit is affordable and also you can have all the benefits like a professional trader.
Always remember, you must trade this market with a premium broker or else you will face many unwanted problems. Though the elite class broker has some strict requirements once you learn the perfect art of spread betting, you will never trade the market with a low-grade broker. Take your time and choose the perfect account according to your personal trading needs.