October 18, 2013

The Most Suitable Foreign Exchange Trading Accounts

foreign exchange trading

Irrespective of whether you are a beginner or experienced trader, choosing a foreign exchange trading account is important. When you choose a good trading account you may be able to improve your success level in the forex market. Depending on your knowledge and experience you can choose different types of accounts. The popular ones include standard, mini, micro and managed accounts. You can make the choice depending on your specific needs and requirements.

It is advisable to gain awareness about the unique features of each trading account so that you are able to make an informed choice. You should avoid making a random choice as it can affect your ability to trade successfully.

Different types of foreign exchange trading accounts

The standard trading account is the most common foreign exchange trading account chosen by brokers. When you choose this account you are able to trade in lots of 100,000. You may be able to earn big profits with this due to high leverage offered by brokers. However, you need to be careful when trading with this account as the losses may also be big. They are an ideal choice for experienced traders.

Mini and micro accounts are considered low risk as you are able to trade in smaller lots when you choose these trading accounts. A mini account is 1/10th the size of a standard account and a micro account is 1/100th. You do not need big amounts of money to start trading with them. These trading accounts are considered best for beginners, as they are less risky than the standard account.

Tips to choose the best foreign exchange trading account

The popularity of the forex market has ensured that brokers offer different types of trading accounts to suit the specific needs and requirements of the trader. Before you make the choice it is best to do adequate research so that you are able to make an informed choice and benefit from it. You can read reviews from reputed websites, blogs and forums so that you are able to get a clear picture of the pros and cons of each trading account.

Although there are hundreds of brokers offering different types of foreign exchange trading accounts it is best to choose from reputed brokers so that you are able to get the best customer service and support. The Australian Securities and Investments Commission (ASIC) regulates forex trade in Australia and you need to ensure that the broker of your choice is licensed and regulated by them. You should avoid choosing brokers who are not registered with ASIC.

If you are confused with the many choices that are available you may opt for the demo or practise account provided by reputed brokers so that you are able to test the features and functionalities of the trading account. You may also be able to test the trading platform used to place a trade. When you choose a good account as per your specific needs you may be able to take advantage of the many profit-making opportunities available in the forex market. This can help you make regular returns on your investments.



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