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Standard accounts1/31/2024 ![]() This could be by passing a test or by submitting documentation. In this situation, you will need to prove your trading experience and credentials. ![]() Should you want to access higher leverage levels, you can apply for an EU professional account. Under European regulations by ESMA, regular retail traders are subject to leverage limits. It is important to note that professional accounts for EU clients are slightly different. These types of accounts are usually ECN accounts too, which means they allow you to trade in the market directly. They have a high minimum deposit limit (around $10,000) and allow you to trade standard lots. VIP accounts are generally just reserved for those who have a large amount of capital. Whilst the names of these account types suggest that you would need to be accredited if you wished to open one, that’s not necessarily the case. Some standard accounts, however, may also allow you to trade standard lots but this is rare. Standard accounts usually have a minimum deposit limit of around $100 – $500, and they allow you to trade mini-lots. They may also refer to them as ‘Premium’ or ‘Gold’ accounts, which is a little misleading as these accounts are actually the broker’s regular offering. Some brokers may call this type of account ‘Classic’ or ‘Intermediate’. Standard Accountsĭifferent brokers use different names for their standard accounts. This helps you to control your risk-levels, making these types of accounts perfect for beginner traders. Most micro accounts limit you to trading nano or micro lots. As these accounts have a low barrier to entry, however, there are restrictions on your trading activity. They allow you to enter the market with a small minimum deposit limit ($100 or less). Micro accounts are, as their name suggests, accounts suitable for traders with a small amount of capital. Considering this, each different type of account has a different minimum deposit level too. You should, therefore, review your capital and the volume you wish to trade before choosing an account.Īs we’ve just explained, the most common live trading account types are based around the size of the lots you wish to trade. Having a good understanding of what these units of measurement (lots and pips) mean before selecting an account type is important, as different account types allow you to trade different lot sizes. Therefore, being profitable when trading the Forex markets is not necessarily related to which trader is making more pips, but what each pip is worth. The value of a pip is different depending on the lot sizes you are trading: Value of a Pip Per: There are also mini lots (10,000 units of currency), micro lots (1,000 units of currency), and nano lots (100 units of currency). This represents the number of currency units you will buy/sell in a trade.Ī standard sized lot is 100,000 units of currency. In forex, trade volume is counted in specific amounts, namely ‘lots’. The value of a pip is directly related to trade volume. On any trade, your loss/profit is also counted in pips. ![]() The difference between the opening and the closing price of a trade is counted in pips. We will soon talk you through each different forex account type, but first, you need to understand the value of a pip and lot sizes. Many account types, however, share certain qualities even though they may go by different names from broker to broker. All good forex brokers allow clients to choose from a multitude of types of trading accounts.
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