Forex Mini Online Account

Using a Forex mini online account can be a good way to get your feet wet and possibly make some money in the foreign exchange market. So what is a mini account and why would you want to use one? The account itself isn't physically smaller than the other accounts. You can't pick it up and put it in your pocket. The main difference is that the lot sizes are smaller and the minimum deposits are smaller.

Lot Sizes

The biggest difference between this type of account and a standard account is that you don't have to trade with as big of lot sizes. With a standard account, trading a single lot is like trading 100,000 of the base currency.

By comparison, with a mini account, trading one lot is like trading 10,000 units of the base currency.

Compared to Micro Account

Some traders get the Forex micro account confused with the mini account. After all, they're both small, right? Well, they are both small...but they're not the same thing. While a lot in a mini account represents 10,000 currency units, a micro account represents 1,000 units of a currency.

Some Forex brokers even offer a smaller account than both of these options, called a nano account. With a nano account, one lot is equal to 100 of the currency you are trading.

What Does it Mean?

When trading the foreign exchange market, it's important for you to choose the right type of account. The type of account that you open will have a lot to do with how much cash you have to invest. If you've got $100,000 or more to trade with, you could easily open a standard account and start trading. If you have less than that, you might want to lean towards a mini account. If you've got somewhere between $5,000 and $8,000 it might be in your best interest to open a micro account. With less than that, a nano account might be the best option.

Demo Accounts

Have less than $500 to get started with? Although you could technically open a nano or micro account, it's usually best to open a demo Forex account and practice. This gives you the chance to trade until you have enough cash on hand to open a real account.

Most of the Forex brokers out there offer demo accounts and many of them offer all of the accounts mentioned above also. Check out our brokers page to get more info about which one to pick.



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