If you are a newbie in the Forex world, your main goal is to obtain practical experience at minimum risk without making large deposits and stakes. For such clients, brokers often offer microcurrency accounts. Do you want to know how they differ from standard ones? Our experts will give you all the basic information below.
In short, such accounts are meant for trading with small sums. Namely, the minimum contract size may start from 1,000 units, which equals 1% of the base currency. It is 10 times smaller than a mini lot and 100 times smaller than a standard one. As for other aspects of the trading process, there is no big difference.
Such a micro account offers multiple advantages:
· beginners do not need to search for large capital to start trading;
· due to minimal contract size, potential losses are minimized as well;
· some brokers set an initial deposit limit as low as $1;
· experienced traders can utilize such accounts to evaluate the quality of services offered by brokers in live market conditions but without significant deposits.
Although the benefits of such profiles are obvious, you must take into consideration that the smaller the size of a contract, the smaller potential profits are. Yet, if you are sure of your skills and knowledge, you can try to compensate for that with high leverage.
If you are ready to make a try, here are our guidelines on how to open a microcurrency account:
1. Find a broker. Our top leaders are RoboForex, Exness, and Forex4You.
2. Sign up. We will use RoboForex as an example, as it is one of the most common choices. So, go to the website of this platform and find “Trading” ― “Cent accounts” ― “Open cent account”.
3. Fill in the registration form. You are supposed to enter your name, mobile number, and contact email address.
4. Choose the type of your profile. Click on “Real”. Then, you will be offered to select the optimal currency, leverage, trading platform, and other details.
5. Provide the information about your home address.
6. Confirm your email address.
7. Confirm your identity and residence address. For that, you should take a phone or make a scanned copy of your ID and a document that contains information about your address. After the security team of the source checks your documents, you can make your first deposit and start trading.
In sum, if you are new to this sphere, it is strongly recommended starting from micro deals. Do not haste to get involved in extreme risks, stick to small but safe steps.
