
Most brokers offer both regular and mini-accounts, and require trades in specific lot sizes. A regular account usually requires at least a $10,000 deposit, and lot sizes are 100k—that’s 100,000 units of currency—and leverage ratios up to 100:1. With a ratio of 100, it takes only $1,000 to buy or sell $100,000 worth of currency. A pip is equal to 10 units of currency with 100k lot sizes. If the currency is USD, then 1 pip = $10.
Mini-accounts require a deposit of as little as $100, and lot sizes are usually 10k, with leverage ratios as high as 200—$100 can buy or sell $20,000 worth of currency. A pip = 1 unit of currency. If the currency is USD, then 1 pip = $1. You can generally buy or sell as many lots as you have leverage for, so a mini-account allows smaller increments. For instance, with a mini-account, you could buy or sell $30,000 worth of currency, but with a regular account, the minimum would be 100,000 units of currency, or increments of 100,000 units.
Managed funds are accounts in which the forex broker review does the trading for the investor for a fee.
Many brokers, especially those with international offices, also have accounts for other currencies for traders in other countries.
The most important criteria in selecting a forex broker review after assuring yourself that they are reputable brokers is the trading platform, the currency pairs offered, and the spread, the difference between the bid/ask prices, which is how the forex broker is compensated, and the best way to judge these criteria is to open practice accounts with several brokers, which most offer, and trade for about a month in each account.
Practice accounts allow you to trade forex using live market data and using the company’s software, but without using actual money. It is important to practice with such an account, because forex broker review can be confusing, and using the software will take some learning, especially to use the software proficiently.
Practice accounts are a good way to test your ability to actually enter transactions, and that you understand them. If the software doesn’t allow you to do something, this may indicate that you do not understand something correctly. Or it could be a bug in the software. Either way, you must determine what the problem is before you risk real money.
If you are going to begin trading with a mini-account, which is highly recommended, then you should also start with a practice mini-account. This will give you a better idea of actual profits and losses, both from trades and from interest.
Why ForexGen?
1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.