Forex Basics

The Fundamentals of Forex Standard Accounts Revealed

When it comes to forex trading, a standard account is the most common account type out there. Most brokers offer an account by this name, especially if the broker only offers one account type altogether. While the name might not sound so impressive, standard accounts do offer some benefits to traders, along with disadvantages. Stay with us to find out more about this type of trading account.


  1. Standard accounts can usually be opened with a reasonable deposit minimum, typically from around $100 to $300 or $500 in some cases. Some beginners might have to save up to afford the deposit, but it isn’t an impossible goal to reach.
  2. Standard account holders can usually access some perks through their brokers, like reduced spreads, bonus opportunities, and so on.
  3. Those trading on a standard account have good opportunities to profit. For example, you could profit $1,000 with each pip being worth $10 if a position moves in your favor by 100 pips. It usually isn’t possible to come out with this type of gain with other account types.
  4. Spreads on standard accounts are usually about average, although some brokers do offer competitive spreads on these account types. This can really go either way. 


  1. Some brokers might ask for a larger deposit in order to open one of their standard accounts. The good news is that you can avoid those companies and look for a cheaper broker if you can’t meet the minimum requirements.
  2. Although standard accounts offer a good opportunity to gain profits, traders can also lose the same amount of money if things move against them.
  3. Beginners might struggle with the loss potential on these accounts, especially if they are only working with the minimum required deposit in their account. One bad move could be financially devastating if the risk isn’t managed well enough. 
  4. While standard account holders can usually access some perks, they are often more limited than those offered to higher tier account holders. Bonuses might be more limited, other account holders might be given a free trading coach or one on one lessons, and so on. 

The Bottom Line

Many beginners start out with either a mini account or a standard account. The standard account is a common type of trading account that can usually be opened for $100 to a couple of hundred dollars, with some perks, like an opportunity for larger financial gains, average to competitive spreads, and extra perks in some cases. On the downside, traders can lose just as much as they can gain, so these accounts can be dangerous for those that don’t really know how to manage their risk well. We’ve also seen high fees with some brokers on these account types, so traders will need to remain diligent when it comes to researching terms associated with any broker’s standard account before signing up.

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Unknown Facts About Forex Mini Accounts as Revealed By the Experts

There are a lot of different kinds of forex brokerage account types out there, from more common options like mini and standard accounts to gold, platinum, and diamond accounts, and the list goes on. At the top of the list, you’ll find the elusive VIP account, which is reserved for serious traders that can afford to invest a whole lot of money. Today, we will take a more detailed look at the mini account, which might also be referred to as a cent or micro account. 


  1. One of the things that make mini accounts so attractive is low entry barriers, which usually fall anywhere from $1 to $100. These are usually the cheapest accounts offered by brokers with multiple types to choose from, so they are ideal for beginners that might not feel ready to make a larger deposit. 
  2. Traders trade mini lots instead of standard lots when operating a mini account, which gives them more control over the trade and how much they are risking.
  3. Mini accounts typically offer very flexible leverage options, especially when compared to the other account types a broker offers.
  4. Mini accounts are often used by those that are learning to trade because they provide more control and help limit risk, and they are also beneficial to more experienced traders looking to test strategies and systems for these reasons.  
  5. Since mini accounts do not require a large deposit, it won’t hurt your wallet as badly if you do blow your account, and you’ll be less likely to give up on trading thanks to the softened financial hit. 
  6. A mini account is a great place to start as a beginner before working your way up to an account with a larger deposit requirement. 


  1. Most brokers charge higher spreads and commission fees on their mini accounts, with better offers on their accounts that require larger deposits. This is understandable, but traders need to be aware that 1.5 pips is an average spread on the pair EURUSD. Some mini accounts we’ve seen list a spread more than twice that for the pair. 
  2. Mini account holders don’t usually get as many benefits as higher account holders through a broker. This means you might miss out on the chance to receive bonuses, you might not get an account manager where other accounts do, etc. 
  3. While you’re risking less when trading on a mini account, you’re also more likely to make less profits. This makes mini accounts less attractive to those that want to trade forex for a living, or anyone that has big goals they are trying to meet. 
  4. Mini accounts are more limited when it comes to the maximum allowed trade size, however, many beginners aren’t affected by this. 

The Bottom Line

Forex mini accounts are great for beginners and can even be useful to more experienced traders that are looking to test strategies and systems. In addition to offering low entry barriers, these accounts help traders to manage their risk and take more control of their trades with flexible leverage options and less financial risk. On the downside, you might wind up paying higher fees on your mini account and missing out on some extra perks offered by your broker, like bonuses, promotional offers, etc. You will also be restricted to smaller maximum trade sizes and to make a smaller amount of money than you would on a more substantial account type. Still, a mini account is a great place to start before working your way up to another account type.

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Forex Mini (and Micro) Trading Accounts Explained

Many forex brokers offer multiple types of trading accounts so that they can cater to the needs of different kinds of clients. For example, a VIP account is usually designed for big-league clients that can afford to make a very large deposit (somewhere in the ballpark of $25,000, $100,000, or more). The broker might reward these clients with lowered spreads and commission fees or other benefits for making such a large investment with them. A Mini account is one common account type that is more suitable for entry-level traders. This account also might be referred to as a Cent or Micro account.

Conditions with every broker are different, but there are a few things you can expect to see with a Mini account type:

  • A low deposit minimum: Some brokers will allow you to deposit $5, while others might ask for a larger amount of around $100 or so. Still, the required minimum for these accounts is often much lower than the asking amount for a Standard account or other type of account that the broker offers. This makes these accounts more attractive for beginners.
  • A smaller minimum trade size: Most mini accounts will allow you to make a trade that is one micro lot (0.01) in size. Other larger accounts often require a minimum trade size of one mini lot (0.1) or one lot, especially accounts with larger deposit requirements. 

Mini accounts are attractive options for beginners because they offer the ability to open a trading account with a smaller deposit while taking a reduced risk through smaller contract sizes on trades. Traders usually have access to the same assets, trading platforms, support options, and other features offered by the broker, so this can be a great option for those that are just starting out.

If you’re considering a Mini account, you do need to be aware of some of the dangers associated with these account types. While trustworthy brokers will provide you with average conditions or better, some brokers take advantage of entry-level traders that can’t afford to make a big investment right out of the gate. Here are some things to watch out for:

  • Make sure the broker’s asking deposit is low. You should never have to deposit $500 or more to open a mini account. Even $250 is a lot considering that many standard accounts can be opened for around $100 to $200. 
  • Check the spreads on the account – the average spread is 1.5 pips on the pair EURUSD. If you see spreads of 3 pips or more on this pair, you should look at other options. You shouldn’t be charged an arm and a leg to make a trade just because you have an entry-level account, and many other brokers won’t try to overcharge you. Of course, do expect to see higher spreads than what might be offered on a Platinum, VIP, etc. account that requires a much larger deposit.
  • Look at commission fees to be sure that they are reasonable as well. Be sure to add spreads and commission fees so that you know the total cost of placing a trade.
  • Some shady brokers withhold certain features from lower-tiered accounts, even though those benefits should be available to everyone. For example, VIP clients might be provided with instant support, while Mini account holders are only able to talk to support through email. Having a dedicated account manager is one thing but being denied basic customer service options is unacceptable.

A Mini account can be a great option for traders that are just getting started. This account type accepts low entry-level deposits and will allow you to make smaller trades. Although profits are on a smaller scale, clients that are still learning will benefit more from this less risky account type. There are a few things to watch for before opening a mini account, however, as some brokers might try to charge you high fees or take advantage of beginners. As long as you open a mini account through a trustworthy brokerage, you will be able to reap the benefits without losing your investment as easily as you could on another type of account. Once you become more acquainted with trading, many brokers will allow you to move on to another account type that supports larger trades and offers more benefits.

Forex Basics

Signs that You’re Ready to Open a Live Account

Have you been considering the benefits of becoming a forex trader lately? Perhaps you’ve heard stories from close friends or family members about the success that it has brought them, or you might have stumbled upon trading articles online that inspire you to try it. Daydreaming about becoming a successful forex trader is one thing, but many of us find that actually opening a live account is another. After all, you might be wondering if you’re truly ready or you could be having a tough time committing to making that initial investment. Don’t worry though – we’re here to tell you if you’re ready, or if you need to spend more time preparing so that you’re more likely to be successful.

Sign #1: Your Demo Results Say Yes

If you’re truly considering switching to a live account, we hope you’ve been practicing on your demo account first. If you don’t even know what that is, you should know that demo accounts are hands-on tools that are offered for free by most forex brokers. These accounts allow you to trade in a live environment while using fake currency so you’re not at any financial risk. Beginners can really learn the ropes by using these accounts because they will allow you to become acquainted with the mechanical aspects of trading, like working a platform or entering trades, exiting, and so on, you can test different strategies with them, and can still benefit from using them later on. If you haven’t signed up for a demo account yet, this is where you should start.

On the other hand, if you’ve already opened your demo account and you’ve been trading on it for a while, your next step is to analyze your performance. A good indicator that you’re ready to move on would be consistent profits with noticeable improvement since you first started. This doesn’t mean you have to win every single trade you’ve entered, but you should be able to tell that you’re improving as a trader and that you would be making profits on a live account rather than losing money. If you’re not quite there yet, don’t jump the gun and open a live account yet. Instead, spend some more time practicing.

Sign #2: You Have a Risk-Management Plan

It’s been said that 50% of your trading success depends on your risk-management plan. To be clear, this defines the way that you plan on reducing the overall amount of money you risk when trading. You’ll want to consider how much you’re willing to risk on each trade for starters, as some beginners make the mistake of risking way too much at first, which leads to a blown account. Some experts recommend limiting your risk to 1-2% of your account balance per trade, while others suggest that it’s better to analyze each individual trade to decide how much to risk based on the chances of that trade being successful.

You’ll also want to employ stop losses to ensure that you don’t lose too much on your trades if the market moves against you. If you’re already considered different risk-management strategies and you have the answers to these questions, then you might be ready to move on. Otherwise, you should spend more time developing your risk-management plan to ensure that you don’t lose a lot of money in the beginning. 

Sign #3: You Can Handle Losses

This one might be a little harder to answer considering that your only experience so far likely comes from a demo account. This is because those that are trading on a demo don’t have any real money at risk, so they are less likely to succumb to the emotional aspect of trading. Still, traders should take their demo results seriously, so you’re still likely to feel a little sting when you lose. Try to think of the way you feel when you do lose on the demo account and how you might feel if you had actually lost that money in real life. If you think you could handle it calmly, you’re probably ready to move on. 

Sign #4: You’ve Invested Time into Choosing the Right Broker

What broker do you plan on using? Some might already have a broker in mind or plan to open a live account through the broker they’ve been using for demo trading. If you do plan to use the broker you’ve been demo trading through, you will already have an idea of what their conditions are like, but there is more left to consider. For example, do you know anything about the funding options offered or how much will be taken in fees when you withdraw money? Some brokers will allow you to withdraw for free, while others charge fees upwards of 7%.

Think about the difference that will make in your profits. What about hidden charges, such as inactivity or maintenance fees? Before making a final decision, you need to go over everything on the broker’s website, including their terms and conditions, or else you could find some nasty surprises later on. Truly researching any broker you plan on choosing is the last sign that you’re ready to put in the effort and make the observations required of you as a true forex trader

Forex Basics

Making the Switch from a Demo Account to Live Account

One of the most important things to keep in mind is that trading a real account is very different from a demo account, at least from a psychological point of view. Changing a demo account to a real account is a relatively simple process. Depending on your broker, it can be as easy as clicking on a web page several times to fund an account and then start trading live.

As a last resort, most of the brokers are trying to reach do live trading, and the demo account is the first part of the process to accept a new customer. After all, you are now starting to lose money and that is much more painful than being wrong in a trade. If you’re wrong on a demo account, your pride is at stake. If you’re wrong on a real account, your pride and your money are on the line.


When you are ready to open a real account, you will need to facilitate a certain amount of documentation. In general, you are usually offered a real account only after you can prove your identity, residence, and any other legal document required for the regulatory entity with which the broker must deal. In general, you’re seeing some kind of government identification and some kind of utility bill from the address you live at. Beyond that, there will be some legal documents to sign that will be provided by the firm’s attorneys.

There will probably be some code of conduct agreement as well as even more if there is a social trading platform. Obviously, this will differ from Broker to Broker, but in general, these are the “rings” that will go through.


Financing will vary from Broker to Broker, but most of them will accept bank transfers, checks, and various types of electronic payments such as Paypal, Skrill, and many others. It is the part of financing that proof of identity is so important for brokers, as there are strict international laws against money laundering that brokerage accounts used to be used against. Financing can take only a few minutes, or a couple of days, depending on the broker’s administrative speed and the completed form.

The Psychology

The psychology of going live is a bit of a mix. Initially, it is an exciting time to be a trader because it suddenly becomes “real”. But fear also becomes a serious problem. Suddenly, losing does matter and you’ll realize that you feel much less comfortable when you operate on paper. The psychological part of trading is certainly the most difficult, but it is also the most important. It is your psychology that will help you through difficult times and keep you grounded during high times. I cannot stress this enough: its success lies within the realm of psychology and, of course, also of money management.

Administration of Funds

As mentioned above, money management is a big part of its success or failure. It really is true that random trading can generate profits if you use proper money management and psychology does not play against you. This is why many traders may have the same strategy as other traders and get completely different results. It’s about being able to keep your losses small and let your winners run. I know it’s a cliché, but it’s true, and that’s why you hear so much about it.

First, prove to yourself that you can win. One of the biggest mistakes I see that traders make is that they don’t succeed at demo trading initially before risking money. For that, it is supposed to be there a demo account, although I must admit that the vast majority of brokers use it as a commercial hook to increase their sales. Too many people are too excited about real-money trading to learn how to make long-term profits. Most brokers know this, so they have no problem giving away these free demo accounts because they know that it is very likely to go on the market long before it is profitable.

However, I ask you: “How can you expect to make money in the real world if you cannot do it in a simulated environment?” It’s a lot like allowing a doctor to practice in the real world who failed in medical school.

Too many people think they are going to enter the markets and carry out a massacre immediately, without understanding how difficult it is going to be profitable and successful in this effort. Actually, it can be a very rewarding race in which to participate, but you must take your time and be patient about the way the market moves.


Switching from demo to live account is relatively simple most of the time, but you need to have proper documentation. The real challenge comes down to doing it. If it is not profitable in a demo account, there is no way to do it in a real account. In fact, I can guarantee that you will end up losing your money. The average retail account is sold out in 90 days. Keep this in mind, but what I would say is that everything is avoidable, however, if you just take the time to learn how to trade, and only then do you start putting your money to work.

Forex Basics

What is a Forex PAMM Account?

You will see that some Forex/CFD brokers, usually the largest, offer a “PAMM Account”. What is this type of account? In short, “PAMM” (in English “percentage allocation management module” or “percentage allocation money management”) means “management module of percentage allocation” or “management of money in percentage allocation”. In other words, a PAMM account is primarily an account managed where a merchant operates on behalf of others through his account.

PAMM accounts work with the Forex/CFD broker using a software application that allows broker clients the ability to assign part or all of their accounts to management by a particular operator. The managing merchant then trades his own money, but it is supplemented by the money of other customers, who each receive a percentage of the profits or losses made by the merchant in their own accounts.

Example of a PAMM Account

Imagine that you are a retailer with your own account and other traders with the same broker ask you to manage their accounts. Let’s say you have 10,000 USD and Trader B gives you 50,000 USD to manage and Trader C gives you 40,000 USD to manage. It is now trading a total of $100,000 with a 10% allocation percentage. The allocation of operator B will be 50% and operator C 40% in line with the capital contributed to the global fund. You place a purchase order to buy 1 lot in EUR /USD. Your agent will assign the order between the parties for this trade as follows: 0.1 lots for you, 0.4 lots for Trader B, and 0.5 lots for Trader C.

Advantages of the PAMM account

A PAMM account allows a merchant to manage other people’s money easily, simply by operating normally through their existing platform. The PAMM software performs all the required calculations. Indeed, there is no limit to the number of “clients” for which the holder of a PAMM account can manage money. The account administrator can benefit from his own trades and get a percentage of the proceeds of the money he or she also manages. When the trade goes well and is profitable, it is a win-win all year round.

A special advantage that has a PAMM account for the investor is that the investor knows that the trader is risking his own funds, and has “skin in the game”, which would tend to increase confidence that the operator will be working in the style that they actually believe in, the best of their ability.

The PAMM accounts are monitored by the Broker, and the investors are reassured to know that they are aware that the money manager cannot access the actual funds contributed or make any withdrawals. On the contrary, there is a situation in which the investor must issue a check and deliver it to a money manager, and you will immediately see a huge advantage of a PAMM account.

Disadvantages of a PAMM Account

The biggest disadvantage of a PAMM account is that all parties involved must be customers of the same Forex Broker/CFD. Most of the larger brokers offer PAMM accounts, but there are other solutions available in the market that achieve the same result but can bridge different brokerages and trading platforms, such as copy exchange software, or other brands that offer PAMM style configurations but have bridges so that they can connect to accounts in most brokers. On the other hand, in reality, there is a small but realistic technical advantage for all parties to work through the same broker and platform, reducing the risk of latency problems or communication errors.

How Does it Work?

Many brokers offering PAMM accounts keep a detailed list of their PAMM money managers so investors can do some research and decide who wants to manage their funds. The lists contain details of the path of each trader’s performance and more information about who they are and what their business philosophy is. The Broker provides a limited-power document (LPOA) that both parties sign, which gives the money manager the right to manage the investor’s money according to the agreed terms and conditions: investors can, of course, end at any time and have the capacity to the negotiation of your funds transferred back to them. Monitoring, review, record keeping, etc. are facilitated through the intermediation offered by the PAMM account.

Can I have a PAMM account or make an investment in one? The answer is “yes”: if you already have a satisfied Forex/CFD broker, just ask them if they offer PAMM accounts. If they don’t, there are many brokers offering PAMM accounts.

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Trader’s Guide to Islamic Trading Accounts

An Islamic account or swap-free account is a special type of trading account that is offered by some forex brokers. These accounts were created to adhere to religious Islamic beliefs that prohibit the accrual of interest, meaning that Islamic traders cannot pay or receive interest rates. These accounts must respect these Islamic principles:

  • Payment or receipt of interest rates is prohibited
  • Exchanges must be executed immediately
  • Gambling is not allowed

Although Islamic accounts have many similarities to regular trading accounts, they do differ in some ways. For example, Islamic accounts cannot be charged swap fees for holding positions overnight, but some brokers might apply administration charges if a position is left open after a specified amount of time. Each broker has its own terms and conditions for its Islamic accounts and might offer different spreads, fees, or make other changes. Always be sure to read the terms and conditions for any account before making the decision to open one. You also might want to compare a broker’s Islamic account versus their regular trading accounts to make sure that there isn’t a big difference with spreads or other conditions. 

Finding a broker that offers Islamic or swap-free accounts is possible, but you should know that these accounts aren’t available with every forex broker, mainly because some brokers feel that they don’t make enough money through these accounts. If you’re trying to find out if a specific broker does offer them, start by checking out their ‘Account Types’ page and check out other areas of their website for information. If you can’t find any mention of an Islamic/swap-free account, try reaching out to ask support if this is offered before you move on to another option. Some brokers might require you to sign up for these accounts by speaking with an agent first and it’s common for proof of religion to be requested before an Islamic account can be opened. 

While Islamic/swap-free accounts can be beneficial to those that often leave positions open overnight, they are only meant for traders of the Islamic faith and you will have a hard time opening one without proof that this is your religion. If you are Muslim, then the good news is that you do have options to trade without breaking any religious guidelines related to interest charges, gambling, and so on. These account types have many similarities to traditional trading accounts, although the ways that fees are paid can differ so that the accounts are compliant with Muslim beliefs.