The Types of Forex Trading Accounts Offered in Forex Brokers

Investopedia, the most trusted resource on finance, states that forex agencies typically offer three types of forex trading accounts: the standard account, the mini account, and managed account.

In this article, we’ll be looking at the standard and mini accounts in detail, because FBS believes that anyone can trade easily on their own, especially when we provide guidance and news to accompany each and every one of our clients.

1. The Standard Account

A lot is a currency unit that you purchase from forex brokers. Standard accounts typically offer a standard lot of 100,000 – it would be US$100,000 if you were to trade with the USD. For simplification, we shall use USD to assign a currency to all the lots in discussion in this article.

A standard lot of $100,000, as you might expect, will have a high overhead capital investment. However, almost all forex brokers offer leverage, which is the minimum amount of money invested to have access to the lot. The leverage of most standard accounts, according to Investopedia, is 100:1 – in other words, $1000 in your forex trading account can already grant you access to the other $99,000 in the standard lot

The capital gain from this is that since 1 pip can potentially get you as far as $10, 100 pips that move with your speculation will give you 100% in investment returns. Since the reward is high with a corresponding high risk, the standard lot is mostly used by experienced traders.

2. The Mini Account

As the name suggests, the mini account offers smaller lots with lower initial capital costs. You can gain access to a lot of $10,000 with a leverage of up to 400:1 – this means you can invest with as little as $25, however most mini accounts open with $250 to $500 in investment. 

The low risk is associated with lower rewards, at potentially $1 per pip. However if you are beginning to try out forex trading, or if you want to experiment with a new strategy without risking so much capital, the mini account is for you.

FBS offers two types of mini accounts

FBS offers the Cent and Micro accounts, each features some very attractive offers for absolute beginners and innovative professional traders. 

The Cent account requires only $1 to open, with leverage of up to 1000:1. The Cent accounts operate with very low volatility with just 1 pip of spread. This is ideal for beginners who prefer lower risks, with a potential to lose no more than $10.

The Micro account is the brilliant solution by FBS for those who need some kind of intermediary step from beginner to pro. Requiring just $5 minimum balance, the leverage is astoundingly high at up to 3000:1. The caveat is that the Micro accounts operate at a much higher spread at 5 pips. However, this offers a safe challenge for intermediate traders to gain even more experience before taking on the standard account. 

Did we mention that FBS’s standard account only requires $100 in deposit? Learn more about our 100 FOREX offer by going to our Trading Page.