There is at least one indisputable fact in the basics of trading on the Forex currency exchange: both the degree of risk and the actual size of the trader’s profit …
directly depend on the size of his starting capital – the deposit made by the trader to the account of the Forex broker to enter the trades.
The main participants in the foreign exchange market are banks, export-import companies, international corporations and large investment funds. The minimum transaction amount on the world currency market is one hundred thousand currency units. In fact, there are no transactions for a smaller amount on Forex in principle, and traders get there solely thanks to Forex brokers who substitute their “leverage” and split the lots.
So, with a leverage of 1: 100, a standard lot is no longer one hundred thousand, but only one thousand units; further reduction of the amount to enter the market is achieved through the use of mini- (1/10) and micro-lots (1/100).
About types of accounts for placing deposits
As a result, it is quite possible to get to the currency exchange today with less than a hundred dollars. But to hope to earn capital with this approach, of course, is naive. Nevertheless, reputable brokers today offer several types of accounts that allow you not only to trade Forex seriously, but also try your hand at almost no start-up capital.
The most common accounts:
- A cent account (currency – American or European cents) usually has a maximum leverage and a minimum margin for a trade, perfect for honing your graphic, technical and fundamental analysis skills and developing your own profitable strategy on small volumes.
- Standard or Classic account (the size of the deposit varies with different brokers and can reach $ 500 or more, the leverage is 1: 1 to 1: 1000). Such an account is suitable for a beginner to consolidate the skills of real trading, and is also often used by more experienced traders who have an effective trading strategy.
- The ECN account is distinguished by a faster order execution speed, less slippage, and a floating (and often zero) spread. The leverage on an ECN account is usually less than on a Classic account. It is aimed at advanced traders (in particular, it is good for implementing scalping strategies).
Trading conditions, even on standard accounts, may differ significantly from broker to broker. In addition, some brokerage companies also have exclusive offers.
About reputable traders and Forex brokers
As follows from the very principle of trading on the international currency exchange, one of the main tasks of any trader is to choose an honest partner. Reputable brokers, as a rule, offer accounts for traders with different financial capabilities, including VIP traders.
We find such a trading format, for example, at Tickmill: in addition to Classiс and ECN accounts, the broker offers special cooperation conditions for large traders – VIP accounts for those whose account balance reaches $ 50,000 € £. Such traders receive special trading conditions (commission 1.6 units of the base currency one way per lot, spreads from 0.0 pips) and a personal approach.
However, Tickmill knows equally well what to offer to professionals and where to start for beginners: for newbie traders – excellent conditions for starting in the foreign exchange market with a capital of $ 25 € £, a spread of 1.6 pips and no commissions for transactions; for advanced traders – trading with the same starting capital with a commission of 2 units of the base currency and with a floating spread from 0.0 pips.
