If you are a newbie, then it’s really important for you to know everything about forex trading. That’s why I write this article today. I hope you have read all of my previous Articles. Now in this post I will show you How many types of Trading Accounts are Available In Forex Trading, every account has it’s own characteristics. To learn more about types of trading accounts, please take a look at below.
Types of Trading Accounts:
Following are the available trading accounts of Forex.
- Demo Account
- Standard Account
- Mini Account
- Micro Account
- Zero Account
Demo Account:
In other words, we can also say that it’s a Practice Account. If you are a newbie and have no Idea how to trade, and make a profit, and you don’t want to lose your investment. Then it’s the best way to learn Forex Trading in a Demo or Practice account. On Demo account, every broker gives you the free Dollars, Bonus or Investment. Which can only be used for the educational purpose. On demo account, any profit you’ll make, will not be withdrawable, it’s just for educational purpose. If you are a newbie, then we recommend you to first trade on a Demo account and after that move towards the real trading account.
Standard Account: (100,000 Units)
The all-time typical forex trading account, the Standard trading account gives investors a variety of benefits and this is the only account type which is available in all forex Brokers, and initially standard account was only available for trading and then time to time other all types also introduced like mini, micro, zero etc. in standard account 1 lot = 100,000 units. It’s mean whenever you buy or sell that means you are buying/selling 100,000 units 1st currency of the pair.
Example: If you buy 1 lot of EURUSD that means you are buying 100,000 units of EUR
Mini Account: (10,000 Units)
Mini account also one of the most popular account type. In the mini account, if you trade 1 lot means you are buying/selling 10,000 units 1st currency of the pair.
Example: If you buy 1 lot USDJPY that means you are buying 10,000 units of USD.
1 Lot > 10,000 Units > It’s Called mini lot in mini account
Micro Account: (1,000 Units)
A foreign currency exchange based on trades for 1,000 Units of currency. Micro accounts are certainly one of the several typical kinds of trading accounts in foreign exchange. Nowadays most of the people are trading in micro account because in micro account you still can trade mini lots even standard as well.
Example:If you want to trade standard, mini or micro
1 lot = 1,000 Units > It’s called Micro lot in micro account
10 lots = 10,000 Units >It’s called Mini lotin micro account
100 Lots = 100,000 Units >It’s called standard lotin micro account
Zero Account: (100,000 Units)
Zero account same as standard account 100,000 units the Zero Spread Forex trading account is an affordable forex account that offers NO spread or RAW spread account because in zero account normally broker does not charge spread or if they charge also they charge very low spread but at the same time they charge their commission as well it’s depend on the brokers all brokers have their own commission based on per lot as Our recommended broker is XM.COM, XM charge 10 units of 1st currency of the pair
Example: if you buy 1 lot of EURUSD in zero account XM will charge you Raw spread which can be 0.0 or 0.01/2 and at the same time commission will charge you 10 until of 1st currency of the pair which is EUR same as if you trade GBPUSD then your commission will be 10 GBP.