Definition of a micro account
A micro account is a micro account that can satisfy a retail investor who is looking for exposure to forex trading but does not want to risk a lot of money.
The smallest lot of a mini account is also called a mini lot, which is a predetermined amount of about 1000 units of currency, as the minimum size that a trader can deal with is one mini lot, while the maximum size usually varies depending on the number of shares held in the account.
The mini account is a common type of account that mainly allows investors and retail traders to access the forex market, and it is considered among three types, as the other two types are small and it shows us the difference between micro, mini and standard accounts.
This type of account may be used by novice traders, but it can also be used by experienced traders, to test strategies in real market settings, and to know the currency trading times in all countries, as well as the trading times of currencies in Saudi time.
We find that micro contracts in Forex are equivalent to 1000 units of the base currency, where a standard account lot is equal to a small account, which is equivalent to ten micro account lots.
Micro account types
Opening your first forex or micro account is one of the biggest steps you can take as a beginner trader, so it's definitely not something you're doing, and you're not ready for it.
We find that many novice traders rush to choose the type of account without properly understanding what the account offers, such as FBS account types, as they have many different types of accounts.
demo accounts
Demo accounts allow you to practice your trading, they are virtual accounts loaded with virtual currency, as all demo accounts are free, although they may have a limited period of use.
Also, demo accounts are useful for both novice and experienced traders, as novice traders can use them to deal with different trading platforms, and see the effects of their trading in real-time, while experienced traders use demo accounts to test their trading strategies.
Swap-free accounts
Most types of trading accounts come with a swap fee, as this refers to the fee you incur for holding a position, as traders who want to hold open positions for a long time, such as swing traders or investors.
They suffer exorbitant fees with a regular account, and to prevent this some brokers offer interest-free accounts, while interest-free accounts may seem attractive, it is not just a case of avoiding fees.
We often find interest-free accounts come with higher trading costs and various restrictions, so if you are not planning to hold positions for a long time, it is best to avoid these types of accounts.
The most popular trading account types
micro accounts
They are mini accounts as indicated by their name, and they are suitable for traders with small capital, as they allow you to enter the market with a small minimum deposit of $100 or less.
These accounts have a low barrier to entry, but there are restrictions on your trading activity, most of the micro accounts restrict you to trading nano or micro contracts, this helps you to control the levels of risk, and learn the best times to trade currencies, which may make these types of accounts ideal For novice traders.
Standard accounts
Different brokers use different names for their standard accounts, some brokers may call this type of account classic, medium, and they may also call it premium.
Standard accounts have a minimum deposit of around $100 and allow you to trade 500 mini lots, although some standard accounts might let you trade standard lots, this is very rare.
professional accounts
Professional accounts are reserved for those with a large amount of capital, who have a high minimum deposit of around $10,000, and may allow you to trade standard contracts, and may allow you to trade in the live market as well as invest money online.
Forex Micro Account Features
Forex is specially designed for all types of traders as well as all kinds of financial commitments with forex micro accounts, where new forex traders can gain experience and build their own accounts, then start the process of trading more widely through the best forex company.
It also gives young traders the ability to trade, like the big ones, and know the trading times in the currency market, since with only two hundred dollars a trader will buy foreign currency pairs, and sell them in the same way as anyone using a standard account.
Forex mini accounts are not only for forex traders who are underfunded as well as they offer opportunities for more experienced forex traders to experiment and give them a chance to know the types of forex trading contracts.
If an experienced trader does not have a demo account or wants to use a new strategy without maximizing the risk, then the Forex mini accounts are available to him.
Why do investors open a micro account?
We find that the investor depends on the type of leverage he wants to use, as he can still make big gains with a micro account with large leverage.
However there can be a high potential for losses as well, as these accounts help the novice deal with trading, exposure to market fluctuations, knowing the table of currency symbols and their abbreviations, all while learning the basics of risk management.
The main reason investors open micro accounts is that they offer even small traders the ability to trade, like a professional whereby a potential trader can buy and sell forex pairs in the same way as anyone using a standard account, but with a smaller equity stake.