When you trade forex you have the flexibility to choose from a number of trading accounts including a standard account, a mini account or even a forex micro account. If you are relatively new to forex trading or simply possess a limited forex education then it is advised to start off small with a forex micro account.
Forex Trading Today: How has the Trading Scene has Changed?
Traditionally, forex trading was exclusive to affluent investors who had strong relationships with banks. You could only enter the market with around $100,000 or more, otherwise you would not be eligible for online trading.
Today’s trading environment has changed considerably and there is a lot of flexibility with respect to forex trading. Thanks to the abundance of forex brokers you can now access a trading platform with absolute ease from a very small initial trading capital.
Further still, IMMFX allows traders to trade with leverage (also known as on margin). Through margin, traders only need around $2000 to trade a standard sized lot, which is far more advantageous than needing an initial capital of $100,000 to begin your trades.
To make online trading even more accessible to smaller investors, forex brokers set up mini trading accounts. Outlined below are some of the many benefits of opening a forex micro account with your favorite IMMFX broker.
Minimal Initial Deposit
A forex micro account is one step further from a demo trading account. Instead of trading with artificial money on a demo account you trade with real money on a much smaller scale, opening an account with a fifty dollar investment only instead of a few hundred dollars (as is usually the minimum requirement with a standard account).
A forex micro account offers similar advantages to a standard account but is far safer and less risky than a standard account. Since you are trading with less initial capital you have greater control over your account, as your trades are much smaller in size and therefore allow for much easier diversification.
Great for Beginners
If you are new to forex trading but want to try your hand on a live trading platform then a forex micro account is the ideal option. It gives you the opportunity to familiarize yourself with the IMMFX trading platform and practice trading in a live trading environment, without the added risk of losing thousands of dollars from an ill-executed trade.
Forex Micro Account Trading: Summing Up
If you are new to online trading but intrigued by the benefits then you should definitely consider opening a forex micro account before diving in head-first with a standard account. You will gradually learn the ropes and establish if FX trading is really for you before committing your hard-earned cash to a bigger trading account.