Forex trading account types

What is a Forex trading account type?

Forex accounts allow investors and traders to trade all major currency pairs and some emerging market pairs. They are thus a sort of account that a Forex trader opens with a retail Forex broker to trade Forex.

Forex accounts come in many forms because traders have different needs and goals. The distinguishing factors between accounts involve aspects such as features, use, and capital limits. As a trader, it is therefore imperative to choose the best account for your specific skill set, and goals.

However, one account that almost all traders will have at some point is the Forex demo account. We will discuss this account at length, but it is the account that most traders start with and use to practice new strategies.

Let’s have a look at the Forex account types options that traders can look forward to after completing their training on demo accounts. Keep in mind that you do not have to stick to a single kind of Forex trading account throughout your trading career.

Forex standard account

The Forex standard account is the most common Forex trading account. The standard Forex account has one of the highest profit potentials of any Forex account. With each pip worth $10, a position that moves with you by 100 pips in one day will gain $1,000. Unless more than one standard lot is exchanged, this type of gain is not feasible with any other account type.

Because the standard account requires sufficient starting capital to trade complete lots, most brokers offer additional services and benefits to individual investors who have this form of account.

Minimum deposit

The majority of brokers demand that standard accounts open with a minimum balance of $200-$1,000, and occasionally $2,000 to $10,000. This limit is one of the highest.

Fee structure

The Standard account has no commissions and at least 0.6 pip markup. As a result of the wider spread, profits will be larger, but so will losses. The absence of a commission, on the other hand, simplifies cost calculation.

Best-suited for

The Standard account is suitable for a wide category of traders and investors for whom the size of the spread does not play a primary role. At the same time, on a standard account, such investors can get more personalized services.

Top 3 brokers

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

Study Review

3

9.1/10

Study Review

Minimum deposit:

$1

Bonus for deposit:

0%

Regulation:

FCA, BaFin, ASIC, MAS, CySec, FINMA, BMA, CFTC, NFA

Review

IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.

Pros/Cons

•Regulated activities and participation in compensation funds;

•No minimum deposit requirements when opening an account with the international division;

•Leverage is available for trading currencies and CFDs;

•Wide range of trading assets and markets;

•Fee rebates for new and active existing clients with large trading volumes;

•Floating spreads from 0.6 pips for retail Forex traders;

•Bonuses for new clients and partnership programs for different client categories.

•The broker can reject opening accounts to traders with low capital or insufficient knowledge of derivatives trading;

•Deposits and withdrawals can’t be made with e-wallets, electronic payment systems, or cryptocurrencies;

•Trading conditions differ for various countries, so you have to look for the broker’s website in your country.

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Forex micro account

A micro account is designed especially for the retail investor who wants to gain exposure to foreign exchange trading but does not want to risk a large sum of money. The smallest contract in a micro account, also known as a micro lot, is a fixed value of 1,000 units of money, or one-hundredth of a conventional lot.

Depending on the kind of leverage used, massive gains can still be generated through a substantially leveraged micro account, but losses can also be magnified. Therefore, these accounts assist newcomers in learning the fundamentals of trading and becoming exposed to market volatility, all while learning the fundamentals of risk management.

However, Forex traders that prefer larger lots can trade in mini lots and standard lots. In Forex trading, a lot size is an amount or increment of a specific asset or product that is regarded as suitable for buying and selling. Different types of items are frequently available in a variety of lot sizes.

A micro lot is a lot size in currency trading that is one-tenth the size of a conventional lot of 100,000 units—or 10,000 units. When trading a micro lot, one pip of a currency pair based on US dollars is equal to $1.00, whereas a standard lot is equal to $10.00.

Therefore, micro lots in Forex are 1,000 units of the base currency. A regular account lot is equivalent to 10 mini account lots, which are then equivalent to ten micro account lots.

Minimum deposit

The majority of micro accounts do not require a minimum deposit, and if they do, it is typically a small sum, such as $50.

Fee structure

Forex micro accounts have varied spreads. Most of them have fixed spreads that can reach a maximum of 5 pips. However, the common spread for micro Forex accounts is 3 pips.

Best-suited for

This sort of account is ideal for beginners who wish to trade but do not want to risk a large sum of money. In a micro account, the smallest contract is for one thousand dollars, making it highly accessible.

Top 3 brokers

RoboForex – Best Micro Account Overall

RoboForex Review

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Your capital is at risk.

The RoboForex ProCent account is perfect for testing trading strategies. You can also transition smoothly from a demo account to a real account with it.

RoboForex's micro accounts come with a forex bonus of up to 120% for your first deposit and all subsequent deposits.

Additionally, RoboForex offers negative balance protection. You can experience market volatility even if you open a micro currency account. Whenever such a situation arises, RoboForex can reset your account back to zero, preventing you from incurring a negative balance.

You can also protect your account from negative balance using RoboForex's standard tools like stop loss level, transaction volume, and leverage.

You will also receive access to R StocksTrader as part of your RoboForex membership. Traders can automate their trading operations without coding or downloading additional software using this feature.

Low trading fees are part of the ProCent account. Deposits start at just $10 and commissions are nonexistent.

XM - Best Broker With No Requotes

XM Review

Open an Account

Your capital is at risk.
77.74% of retail investor accounts lose money when trading CFDs with this provider.

There are 50+ currency pairs available on the micro forex trading account at XM and spreads start at just 1 pip. It is fairly accessible for new forex traders, as a lot in the micro account is worth 1,000 contracts, and there is a $5 minimum deposit requirement. For the micro account, XM offers 10 different base currencies: USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, SGD, ZAR.

There is no proprietary trading platform offered by XM, but traders have access to MetaTrader 4 and MetaTrader 5. Aside from professional market research each day, the brokerage provides a weekly economic calendar, forex webinars, as well as in-depth educational videos for new traders. Additionally, XM offers traders a $100,000 demo account that they can reset whenever they want.

IC Markets - Best Execution Speed

IC Markets Review

Open an Account

Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

Forex and CFD provider IC Markets offers trading solutions for active day traders and scalpers. With IC Markets, you will have access to cutting-edge trading platforms, low-latency connectivity, and superior liquidity.

IC Markets micros accounts offer the best options for those trading for the first time. Micro accounts are not available with every broker, but IC Markets does. Micro lots start at 0.01. It allows you to manage your own risk profile while still learning how to trade.

Forex cent account

Rather than measuring the balance in dollars, a cent account measures it in cents. Your account balance will be displayed as $1 if you deposit $10. The positions would also be shown in pennies. If you make a $10 profit, it will appear as a profit of $1.00. Additionally, the market rates would be displayed as cents.

We would observe several distinctions that would make cent accounts simpler to comprehend if we were to compare a Forex cent account with a regular account. For instance, a cent account's maximum position capacity is 50, whereas a standard account is somewhere around 100. These are the maximum number of orders that can be opened in one account at the same time.

A different comparison that would be useful is the variation in trading volume. With a cent account, you can trade as little as 0.01 lots, which is equal to 0.0001 lots or $10. This minimal trading volume of 0.01 lots would be equal to $1000 for a basic account.

In contrast to a Forex standard account, a Forex cent account has a far lower trading volume and position capacity. Therefore, the profit potential of Forex cent accounts is limited. It is harder to turn a sufficient profit in a cent account when fewer trades with large volumes can be opened.

Minimum deposit

The minimum deposit for a Forex cent account is usually $1-$10.

Fee structure

Forex cent accounts usually have a floating spread from 1 pip.

Best-suited for

The Forex cent account is a type of account that is better suited for beginner traders because it enables them to trade considerably smaller volumes with trading units called cent lots. The lowest minimum trading volume is offered by this account, making it perfect for testing out trading methods.

Top 3 brokers

RoboForex – Best Cent Account Overall

RoboForex Review

Open an Account

Your capital is at risk.

Established in 2009, RoboForex has achieved a great deal of success thanks to its broad range of trading assets and multifunctional trading platform. The company is based in Belize and licensed by the IFSC (Belize) and CySEC (Cyprus).

Over 1,000,000 clients from 169 countries use RoboForex's services today.

Beginners can take advantage of the RoboForex Pro-Cent account. One of the key features of the RoboForex Cent account is that it uses cents as its base currency. Therefore, it is an ideal forex trading account for those who want to get started with a small amount of money. This account is sometimes used by experienced professionals to test their strategies for trading forex.

You can trade 36 forex currency pairs, metals, and cryptocurrencies with the RoboForex Cent account. Pro-Cent accounts require a minimum deposit of $10 or €10. In addition to the RoboForex deposit bonus and loyalty bonus, you'll enjoy maximum leverage of 1:2000. Starting from 1.3 pips, cent accounts have floating spreads.

Forex4You - Best Selection of Trading Instruments

Forex4You Review

Open an Account

Your capital is at risk.

Established in 2007, Forex4you is one of the largest global forex and CFD brokerage companies. It is regulated by the British Virgin Islands Financial Services Commission (BVIFSC).

Since the regulation in the BVI is much more relaxed, Forex4you can offer its clients leverage as high as 1:1,000 on the most liquid trading assets. Forex4you offers huge trading leverage when compared to brokers in the EU where the maximum leverage is 1:30. A trader must, however, maintain a high level of discipline and risk management skills when dealing with this much leverage.

With Forex4you, you can trade over 50 different currency pairs, a good number of major stock indices, and more than 40 individual stock CFDs, as well as a variety of commodity CFDs. Aside from Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), the broker is also testing the waters in the crypto world.

Forex4you provides both a web and desktop trading platform in addition to the well-known MetaTrader 4 (MT4).

Probably the most popular platform for beginners is the proprietary Forex4you webtrader, which offers a nice and clean user interface. It has large and responsive charts, and its order management module is as easy to use as any platform we have tested. Forex4you is therefore a suitable choice for most new forex and CFD traders.

New traders can choose the type of trading account they wish to open once they have signed up with Forex4you. Each of the four option (Cent Account, Classic Account, Cent NDD, Pro STP) has its own pros and cons:

You can trade in cents with the Forex4You Cent Account. Orders are executed instantly, and spreads are fixed. You can practice trading or test new strategies, advisors, and indicators with this account.

You'll have access to over 80 instruments and EAs. Order execution in an instant, hedging, scalping, and a fixed spread.

It is also possible to multiply your income by sharing your trades. To make your orders available for others to copy, mark your Cent Account as a Share4you leader account in your Trader Room. For each lot copied from you by your followers, you receive a commission of up to 8 USD.

InstaForex - Best Cent Account Flexibility

InstaForex Review

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Your capital is at risk.

Next on the list of the best forex cent accounts is Instaforex. There are two types of cent accounts offered by this provider. To begin with, you can trade forex commission-free with the cent.standard account.

This account, however, has huge spreads, which start at just 3 pips. Cent.eurica offers spreads starting at 0.0 pips. There will be a commission applied to each order between 0.03 and 0.07%, however. There is a minimum deposit of $1 for both types of cent accounts. Despite that, there is only a $1,000 maximum deposit.

Traders can choose from more than 100 currency pairs with a wide range of exotic markets at InstaForex. Additionally, futures, commodities, crypto, and indices can be traded.

Forex ECN account

An ECN broker is a type of financial intermediary that gives clients direct access to other players in the equities and currency markets through the use of electronic communications networks (ECNs). ECN accounts thus enable direct trading between buyers and sellers without the use of middlemen.

An ECN broker can typically provide its clients with tighter bid/ask spreads than would otherwise be possible since it aggregates price quotations from multiple market participants. This is demonstrated by the fact that ECN accounts have the best quotes with no delay, the quickest market execution, and a huge variety of liquidity providers. Spreads also start at just -1 pip.

However, all these benefits come at a cost. The most significant disadvantage of using an ECN account is its high cost. When compared to non-ECN systems, using an ECN usually involves higher fees and commissions. Per-trade commissions can be expensive and have an impact on a trader's profitability.

Minimum deposit

Forex ECN accounts have a relatively high minimum deposit of $200-$1000. However, the benefits that come with the account make it worthwhile.

Fee structure

ECN accounts have spreads as low as 0.0 pip on majors. They also have a minimum trade volume of 0.01 lot.

Best-suited for

Because ECN brokers are non-dealing desk brokers, they do not transmit order flow to market makers. In place of that, they electronically match traders and forward the orders to liquidity providers. Additionally, the ECN can offer some degree of anonymity to individuals who want it if privacy is an issue. Investors seeking out larger transactions may find this to be particularly attractive. This account is therefore also best for professional traders with high capital.

Top 3 brokers

RoboForex ECN Account

RoboForex Review

Open an Account

Your capital is at risk.
58.42% of retail investor accounts lose money when trading CFDs with this provider.

Description

RoboForex is a top Forex and CFD broker offering a wide choice of earning opportunities. Novice traders can copy the signals of professionals automatically. For professional traders, the broker offers a Forex bot constructor and individual trading in the Forex, stock and cryptocurrency markets. Learn more - RoboForex Review Great Britain 2022

Trading Instruments

RoboForex supports Forex, stock and crypto trading. The broker provides access to trading a total of 8,700 trading assets.

Commissions

In the CFD market, the broker uses spread as the commission. In the Forex market, the commission depends on the chosen account. Typical spread is from 0.3 pips, ECN account tradinf fee is $1-$2 per lot.

IC Markets ECN Account

IC Markets Review

Open an Account

Your capital is at risk.
75.93% of retail investor accounts lose money when trading CFDs with this provider.

Description

IC Markets Trading Company was founded in 2007 in Sydney, Australia. The broker is licensed under the Australian Financial Services License (AFSL) and the Australian Securities and Investment Commission (ASIC). The broker is also a member of the Australian Financial Complaint Authority (AFCA), the governing body that sets the industry standard for the resolution of disputes between consumers and financial service providers, and regularly undertakes audits.

Trading Instruments

60 currency pairs, futures, CFDs on indices, commodities, metals, stocks and bonds

Commissions

IC Markets does not charge a commission on Standard Accounts. Everage standard account EURUSD spread is 0.8 pips, Raw account spread is near 0.1 pip. Raw account also has a fee - 3.5 per lot

EXNESS Group ECN Account

EXNESS Group Review

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Description

Exness Trading Company has been working in the Forex market since 2008. The broker holds the leading position in Forex ratings. The company’s monthly trading turnover totals $325.8 billion USD. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals. Exness’s service provides favorable working conditions for traders: low commission, instant execution of orders and withdrawal of funds. There are several options for opening an account depending on the traders’ needs. A demo account is available - a training account that is useful for both beginner level traders and professional traders.

Trading Instruments

Currencies, assets of stock and commodity markets, cryptocurrencies

Commissions

Standard Account EURUSD Average Spread 1 pip, ECN/STP Account Fee $3.5 per lot

Forex raw spread account

The Raw Spread account is a type of account for seasoned traders who prefer incredibly low, consistent spreads. Its method of fixed commission sets it apart from other market maker accounts.

Minimum deposit

The minimum deposit for Forex raw spread accounts is $200.

Fee structure

Forex raw spread accounts have incredibly low spreads that can sometimes be 0.

Best-suited for

Forex raw spread accounts are best for experienced traders.

Top 3 brokers

IC Markets

IC Markets Review

Open an Account

Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

IC Markets Trading Company was founded in 2007 in Sydney, Australia. The broker is licensed under the Australian Financial Services License (AFSL) and the Australian Securities and Investment Commission (ASIC). The broker is also a member of the Australian Financial Complaint Authority (AFCA), the governing body that sets the industry standard for the resolution of disputes between consumers and financial service providers, and regularly undertakes audits.

Exness

Exness Review

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Your capital is at risk.
You can lose your money.

Exness Trading Company has been working in the Forex market since 2008. The broker’s activity is managed by Nymstar Limited, a company registered in the Republic of Seychelles. The service is regulated by licenses of CySEC (Cyprus Securities Commission), FCA (Office of Financial Regulation and Supervision of Great Britain) and FSA (Office of Financial Regulation and Supervision of the Republic of Seychelles). The broker holds the leading position in Forex ratings. The company’s monthly trading turnover totals $325.8 billion USD. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals. Exness’s service provides favorable working conditions for traders: low commission, instant execution of orders and withdrawal of funds. An infinite leverage makes it possible to earn on small deposits up to $999. There are several options for opening an account depending on the traders’ needs. A demo account is available - a training account that is useful for both beginner level traders and professional traders.

FP Markets

FP Markets Review

Open an Account

Your capital is at risk.

FP Markets has provided clients with access to trading on the Forex market since 2005. More than 10,000 trading instruments are available to traders. The broker is attractive due to its favorable trading conditions, super-fast order execution, popular trading terminals, and low spreads. FP Markets is monitored by respected regulators that inspire customer confidence. The transparency and reliability of the company is guaranteed by the supervision of the Australian Securities and Investments Commission - ASIC (license number 286354) and the Cyprus Securities and Exchange Commission - CySEC (license number 371/18). The company also has a registration and an office in the state of Saint Vincent and the Grenadines (SVG FSA). The FP Markets official website contains a lot of useful information about the company, Forex trading, training, analytics, answers to frequently asked questions, a trader's blog, and much more. This training treasure trove will help you improve your level of expertise.

Forex demo account

A trader can imitate a live trading environment with a Forex demo account, all without risking any real money. It enables a trader to begin free online trading quite quickly, allowing them to practice trading before jeopardizing real money.

You can learn how to trade Forex for free by having a practice account. This is because trading with virtual money allows traders to put their knowledge into practice without having to risk any real money. Since learning and practicing your art extensively is a must for success in any field, this also holds for Forex traders.

Demo accounts also help trades approach trades rationally. Emotions can run high when it comes to risking and earning money. These feelings frequently make it difficult for the trader to make an informed decision about their next trading opportunity.

You can learn to recognize these emotions by trading on a demo Forex account, which will enable you to create a routine and plan for handling them. Since most novice traders are unsure of the feelings they would experience when winning and losing, it is usually best to find out without putting any real money at risk.

What Forex account should I choose?

To know what Forex account you should choose, consider your skill-level, what you want to use the account for, and how much you are willing to invest in Forex.

As we have discussed, each of these accounts have unique characteristics. Consider what you want to achieve and what your abilities are then pick the account that satisfies your needs best. We highly recommend learning about the best Forex segregated accounts that offer additional safety for clients.

What are the best Forex accounts for beginners?

The top Forex account type for beginners is the Forex demo account. The reason is that all beginners need to practice their trading skills before trading in live markets to minimize their losses.

For beginners who have already practiced for the recommended 6 months, then cent and micro accounts will be best. These two accounts work well for beginners because their risks are lower and the minimum deposit is not restrictive.

How to open a Forex account?

To open an account on the broker’s website:

Replenish your real account after opening in the currency specified in the corresponding window. When replenishing (in the payment purpose), you need to specify the number of the trading account.

Now you are ready to start trading on Forex. Congratulations.