Mini Forex Account.

As we discussed in the last article there is two types of account that a trader can open, but for a new trader it is advisable that he should open Mini Forex account first and gain some knowledge before opening a regular account. Mini forex account trading is a great method for investors with small amount of capitals to understand and join in the forex market. With a deposit of only $ 100, you can control a currency position of $ 10,000 as the majority of the forex brokers offer a 100 : 1 leverage.

Mini forex account can also give the beginner forex traders some ideas of trading, find out the tricks, and discover the strategies in order to be successful in the forex trading with no need to risk too much money. As what the most of today’s experienced and successful forex traders had implemented, you also should begin your forex trading with mini forex account.

The mini forex account obviously suitable for the beginner forex traders as it is beneficial to assist the traders to train and develop their trading, with less worry of achieving the targeted gain or loss.

In this type of forex account, the traders still will be able to access to all the features in the regular and full size of forex account. When you trade in the mini forex account, you can get the same tools, information, alerts, charts, graphics, indicators, and others. By having exactly the same features, it can contribute towards implementing successful strategies without the fear of missing out any big chance to make profit in the forex market.

There are other advantages when you trade in forex mini account. The forex mini account is available in small size of 10,000 units. You can start trading with a small amount of money of around $ 100 - $ 300. This will be useful before you start trading in regular or full size of forex account. You can try to trade in a forex mini account by dealing with one mini size lot only, and soon after that you can opt to place more mini lots.

The forex mini account traders are not restricted to trade only one lot at a time. Therefore, it is a perfect for you to enhance your experience in forex trading as well as build up your confidence. If you want to make a regular lot trade, you can just simply make ten mini lots trade.

Every forex trader interprets the forex market in their own ways, therefore they ask for numerous prices in accordance to their various chances and benefits. The broker will then shows the highest bid and the lowest ask price.

As you know the forex mini account entails a high leverage, which is 100 to 1 obviously because this is a normal application in the forex mini account trading and it is a normal degree of leverage. In addition to that, the risk for the forex mini account traders is counterbalance by the small loss risk that they may be made in forex mini account trades.

Normally, the average loss in forex mini account is only one tenth of the similar amount that traders could be losing in the forex regular account. For this reason, it is easier to apply a better self discipline in your forex trading strategy, as it is not so hard to allow a small amount of loss to go, in comparison to a larger amount of loss which could influence the traders to keep much longer and that is not so good forex trading strategy.

Another advantage of the forex mini account is that, due to the high degree of leverage in the forex mini account trading, you can make a series of small lots trades. This way, you can have more choices available and apply different forex trading strategies which is crucial for your forex trading learning and practices towards success.

When your risk is obviously cut down, so does your chance of incurring loss due to the low capital employed in contrast to the forex regular account trades.

Once you are gaining profit in your forex mini account trades consistently and your winning trades are much more than the losing trades, thenit is time to apply this knowledge, and experience to get in into the challenging forex market by trading in the forex normal account with bigger capital and bigger lot sizes.

However, just like any other type of trading, the forex mini account also has some drawbacks. There were some forex mini account traders who have made big amount losses which have caused by the incorrect leverage selection, interpreted wrongly the news announcement, short technical failures of forex trading technical tools, graphs, and charts, placed gutless points as well as less protection and unreasonable thought of forex trading.

You should set up in the beginning and then keep to your principles of risk management in your forex trading strategies and hold onto your stop loss points in order to maintain the safety trades. It is recommended that you can only lose around $ 200 when you trade in the forex mini account.