Forex trading with micro accounts
The demand for micro accounts when trading forex is particularly high with new traders. Mini and micro accounts have remained an essential part of the forex trading business, and that is why a majority of brokers provide them.
Trading forex with a micro account makes it possible for traders to start trading with a smaller amount of capital and with higher leverage, depending on the broker. Traders also sometimes use micro accounts to try out new brokers with a live account whilst minimising the risks.
With micro accounts traders can open trades with contract sizes starting from 1,000 lots rather than the larger 100,000 standard lot. This allows traders to refine their trading strategy with smaller deposits before moving to larger account sizes.
With smaller micro accounts the leverage offered by brokers is often larger, however this can be a double edged sword amplifying both profits or losses.
What is a Micro Trading Account?
Micro account have minimum trade sizes starting at 0.01 lots. This is what makes micro accounts a popular choice for traders with lower deposits as it allows them to make more trades while they are still refining their trading strategy. 1 micro lot is equal to 10 cents per pip vs a 10$ per pip with a standard account.
We have compiled a top five list of top regulated brokers that offer accounts to make micro traders (1,000 lot contract size).
1. BrokerNotes’ Popular Micro Account Broker: AvaTrade
Avatrade gets credit as the broker that brought digital currency trading into the market. It is also among the first brokers to introduce CFD trading. The requirement for a minimum deposit is £100 with a trading maximum leverage of 400:1. Traders can make deposits through wire transfer, Neteller, Paypal, or credit cards. The broker facilitates trading on the AvaTrade platform, which offers various features and customisation options. When trading forex, a trader does not have to pay for the advanced trading tools, just the spreads. There is also the availability of the platform on mobile devices. The Ireland-based broker operates under EU regulations.
The minimum deposit a trader needs to open a live account with ETX Capital is £100, and there is only one account type available; the standard account. There is a demo account as well that traders can use before opening a live account. The broker offers competitive spreads with a 400:1 leverage and lot of 0.01. Traders have access to three trading platforms; TraderPro, MT4, and ETX Binary. ETX Capital is a forex and CFDs broker with licensing from the FCA in the UK. More than 5,000 markets are available for traders, which include currency pairs, shares, and indices.
LCG has been operating since 1996 and is FCA regulated. One of the reasons traders prefer it is because its holding company is traded publicly on the London Stock Exchange. £1 is the minimum deposit that a trader can put in. Trading is on the MT4 platform with 39 currency pairs, indices, and commodities. The maximum leverage for trading forex is 300:1. Payment methods supported by the broker include Skrill, Paypal, and major credit cards. LCG includes low commission charges in the spread when trading and traders don’t get hidden fees. It offers one account type and demo.
The minimum deposit requirement when trading with Plus500 is £100. Traders can deposit funds through wire transfer, Moneybookers, Visa, or MasterCard. There is a welcome bonus of £20 on all account; live or demo. The broker is listed on the LSE. Clients can access a trading platform that provides real-time analyses and allows trading in multiple markets. There are other features available that traders can use when making their trading decisions. Plus500 is not available to US clients.
eToro is not a conventional broker. The focus is more on education and attracting new clients. There are videos available that cater to different skill levels. One element that sets the broker apart is the OpenBook platform that traders use to learn from other traders. Clients with minimum experience can look at how their experienced counterparts operate and copy their trading patterns. It is what is known social trading. The minimum trading amount is $50 with a maximum leverage of 400:1. The maximum leverage for US clients is 50:1. Traders can use the common payment methods for deposits such as wire transfer and credit cards.