Benefits to Using a Forex Mini Account

Why Trade A Forex Mini Account?

Forex trading has the potential to make you a lot of money. Many people use what is called a Forex Mini Account to place trades. A Forex Mini Account allows the trader to try Forex and benefit from the numerous benefits that Forex offers over the other money markets (check out my recent article on all these benefits).

The biggest hurdle that new traders face is they are told that you need a lot of money to start a trading or Forex account.

Disclosure: Please note that some of the links on this page are affiliate links. This means that we may earn a commission, at no cost to you, if you decide to make a purchase after clicking through the link. Please understand that we have experience with these companies, and we recommend them because they are helpful and useful, not because of the small commissions that we may receive if you decide to buy something through our links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

To get started in the Forex markets you do not need to be rich – all you need is a good strategy, or a mentor (these guys are highly rated!) and $100.

Forex Mini Account

The Forex Mini Account is a great way to start trading Forex today! Pips are worth $1 in a forex mini account, whereas they are usually worth $10 in a regular forex account. The mini account offers leverage of 200:1 and you will not need to trade full size currency lots. This allows the forex trader to use the mini account to risk much less money per trade than a conventional 100k account. You trade in ‘currency lots’ in FX market and the mini account allows you to trade in 10k currency units instead of 100k lots in a regular account. You wi

Example of using a Mini Account: A 50 pip loss on a regular USD/EUR position (100k) would be $500 but if you were using a Mini Account then the loss would only be $50. So you risk smaller losses, which is always nice!

 

Here is what you get with a typical Forex Mini Account:

  1. Leverage up to = 200:1.
  2. Traded in 10,000-unit currency lots.
  3. Minimum required account deposit = $300.
  4. Recommended required account deposit = $2,000.
  5. Default Margin: set at 0.5% ($50 per mini-lot).

 

 

When you trade forex with a mini account, you get all the benefits of the regular full size Forex account – there really is no down side! You still get all the access to the charts, tools, resources and trading software from the broker. This is a bit like paper trading but with actual money – but the fear you as a new forex trader experiences is reduced because your risk is limited.

Maximum Trade Volume for Forex Mini Accounts?

The new Forex Trader benefits from using a Mini Account because there is NO trading volume limitation with a mini account! You can trade as many 10,000 units as you want to. This allows you to build trade size into your forex strategy.

Conclusion

I hope that this short article has helped you understand that Forex Trading is possible even if you just want to try and get your feet wet. You do not have to risk the house to have a go at trading currency markets.

Wesley.

P.S See How I learned To Trade Stocks HERE

 

Don’t miss this FREE Swing Trading DVD (Worth $1000) AND get free instant access to THREE more stock trading training DVDs worth another $4,000 !!  I wrote a full review of this swing trading DVD here.

Jason Bond Strategy

Tags:

No Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

*