If you’ve ever considered opening an account with a forex broker, you likely considered an option that offered multiple account types. While some brokers only offer one account with the same conditions to all of their clients, others offer two, three, or even several completely different accounts with separate conditions. Choosing the right account can be beneficial, but some beginners have a hard time figuring out which option is right for them. Do keep in mind that each broker has separate offers and conditions will be different wherever you go, but we will break down the main types of accounts that are usually offered below.
Account Type 1: The Mini/Micro/Cent Account
These accounts are usually marketed towards beginners for a few reasons. For one, they can be opened with a small amount of money, with minimum account opening deposits typically falling between $1 and $100. This is attractive for those that don’t have a lot to invest in or those that don’t want to put in a lot of money at first. These accounts are also known the limit the maximum trade size offered, but this usually isn’t a problem for new traders that aren’t prepared to make larger trades. On the downside, these accounts often come with the highest spreads and don’t offer many other perks. If you do plan to open one of these account types, be sure to shop around to find the best conditions possible.
Account Type 2: The Standard Account
A standard account is the most common type of trading account that is available. The minimum opening deposit varies widely for these accounts depending on the broker you choose, but it is typically as low as $100 to $500, although the cost can go into the thousands. Maximum trade size options are usually equal to or higher than those on the broker’s mini account, but leverage options are usually slightly tighter. Expect average commissions and spreads starting at 1.5 pips on these accounts, but do be aware that some brokers will still try to charge you insane rates if you don’t open a more expensive account, so check with several different brokers to find the best deal.
Account Type 3: The Platinum/Silver/Gold Account
While names for accounts of this tear can vary, many brokers offer one or more accounts that fall in between their standard and VIP accounts. You’ll usually find a lot of perks on these accounts, like tighter spreads and reduced commissions, along with other possible perks like an account manager, one free withdrawal a month, better bonuses, etc. On the downside, you can expect to invest a pretty penny into one of these accounts, with most opening deposits starting in the thousands. If you do plan to make a larger investment, you will probably find a much better deal if you can find a broker with one of these accounts available.
Account Type 4: The VIP Account
Brokers reserve their VIP accounts for traders that can afford to deposit a ton of money, usually anywhere from at least $20K into the hundreds of thousands of dollars. If you can afford a VIP account, you’ll be receiving the very best perks offered by the broker, starting with the tightest spreads (often starting at 0 pips) and very low or zero commission charges. Many brokers also sweeten the pot with a personal account manager or one-on-one lessons with an expert and great bonus options, along with expedited or fee-free withdrawals and superior customer service options in some cases. If you can ever afford to open a VIP account, be sure to find a broker that will shower you in perks for making such a large investment.