The Benefits Of A Mini FOREX Trading Account
If, like millions of others, you have decided that trading in foreign currencies
appeals to your investment strategy, but do not believe that you have reached
the levels of experience that warrant you exposing your life savings to FOREX
trading, then opening a mini FOREX trading account may well be just the answer
you are looking for.
Unlike a standard FOREX trading account, it is possible to open a mini FOREX
online account with a little as $250. The immediate benefits of having this type
of a FOREX account are that: (i) you can put in place some of the trading
strategies you have learnt using your FOREX dummy account, without risking too
much actual cash; and (ii) you can leverage your mini account once you feel you
have sufficient real experience, again without the need to necessarily risk losing
your life’s savings; and (iii) you can get the feel of trading in a real life FOREX
trading environment for a minimum deposit – something trading in your dummy
account will not train you for – before moving on to bigger and, hopefully, better
pastures.
Depending on which broker you open your mini account with, you should also
note that certain currencies may not be part of your FOREX trade account
portfolio. In most cases, brokers only allow traders with mini accounts to trade in
‘hard’ currencies, with exotic currencies reserved for standard and premium
accountholders. Moreover, commission rates will normally vary with mini trading
accounts, and as this may play a fundamental role in determining whether or not
you make a profit when dealing in such small margins, you should make sure you
check these commission charges carefully.
Nevertheless, all other facilities available to standard accountholders should also
be available to mini accountholders; for example, FOREX signals, software
packages, support, etc. As such, opening a mini account is normally the
recommended stepping stone for relatively new foreign exchange traders to take
on their way to becoming fully fledged experienced FOREX traders.
