If you are new to Forex trading and want to explore the Forex market without actually spending your money, a Demo account is what you need. When it comes to Forex account types, a Demo account is the one that you will come across at most of the brokers. Since ECN accounts instantly match orders from traders with the best buy and sell prices, they offer lower spreads. With ECN accounts, trade execution can be faster than with other account types since all trades are executed immediately without requotes.
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Forex brokers offer an ECN account along with traditional accounts and charge a commission per lot, with lower leverage and minimum deposit.ĮCN accounts are a perfect choice for professional traders seeking optimal trading conditions. ECN accounts are one of the most popular account types because of their transparency and direct market access. ECN Account – Direct Access to MarketĮCN stands for Electronic Communication Network it is a system for trading Forex without agents. If you want to gain bigger profits, it’s not the best idea to open a CENT account.
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However, a smaller capital will only yield smaller gains. With the low-risk advantage, you can experiment different trading strategies while simultaneously sharpening your skills and gaining experience. The minimum lot size required is 0.01 lot, Therefore, it is possible for anyone to enter the forex market and begin trading with very small capital.ĬENT accounts are best for testing and developing forex trading strategies. CENT accounts are ideal for Forex beginners since they allow trading with real money without risking too much.īeginner traders can use CENT accounts to make the transition from a demo to a real trading account. CENT Account – Best for Low Capital InvestmentĪ Forex CENT account is a trading account with a balance measured in cents. Thus, this type of account is more suited to skilled and capital-rich traders. You need a relatively high knowledge of forex instruments and trading knowledge in order to open a standard account. Using a standard account can also result in greater profits if you manage your trades well.ĭespite the fact that using a standard account can be more profitable, it is also likely to be riskier.
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For Standard accounts, 1 lot = 100,000 currency units.Īnother beneficial thing about choosing the standard account is that you are free to trade a variety of trading instruments like currency pairs, commodities, high leverage, low spreads, high affiliate rebates, seasonal bonus programs, and the ability to trade in more volumes simultaneously. The main advantage of using a standard account is that brokerage firms typically offer their best features and benefits to standard account holders. The name may vary from broker to broker it may be called a classic account or carry the broker’s primary account name. Standard Account – Most Popular Trading AccountĪs the name suggests, the Standard account is the primary trading account offered by most Forex brokers. It is important to select the best Forex account for you, as it impacts your performance and profits. Choosing the best Forex account type for you involves careful consideration of several factors, including what type of trader you wish to be, your tolerance for risk, the amount you invest, and your trading strategy. Standard, CENT, ECN and Demo are the four best forex account types-and each has its own advantages and disadvantages. Below, we discuss everything you need to consider while choosing the best Forex account type that fits your needs. As trading preferences play a large role in which account is best overall, there are no absolutes. Having multiple Forex account types to choose from gives traders a greater chance of finding an account that suits perfectly their needs.įor example, some accounts are best suitable for beginners to get started with, while others are better for those who want to deposit $100 or less, while still others are best for traders looking to make large investments. Given the fact that the Forex market is home to a diverse range of traders of varying expertise, forex brokers are offering multiple accounts with different conditions, rather than only providing one account.
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2.5 Benefits of choosing AximTrade Forex Account