| Most people don't realize this, but there are a number | | | | to test out trading strategies with real live market |
| of FX trading accounts that you need to be aware | | | | data but with fake money. Don't start out trading |
| of before you start to trade. This article reviews the | | | | with real cash until you practice for awhile first. Some |
| different Forex account types and recommends the | | | | companies will allow you to use their demo account |
| ones you need and the ones to avoid. | | | | as a practice account indefinitely. |
| So why is there more than one kind of account? | | | | Micro Lots |
| Well, each account has a different purpose. | | | | After using the practice trading account, you will start |
| Your first step is deciding on a Forex broker. There | | | | to trade with your deposited money. When you do, |
| are many to choose from online. The type that you | | | | you will want to start out with small amounts. Micro |
| want is known as a discount broker. These | | | | lots are very small. You can risk amounts from $1 to |
| companies will allow you to deposit a very small | | | | $50. You won't make big profits but it will get you |
| amount of money. Typically, you can start trading | | | | used to the feeling of trading real cash. |
| with a deposit of $250 to $500. | | | | FX Managed Account |
| With your new broker account, you want to be sure | | | | I suggest you avoid this type. This is a completely |
| they have a few specific features. If not, you need | | | | different than a discount broker account. Typically |
| to keep looking. | | | | the deposits are much higher. Some firms will require |
| FX Demo Account | | | | a cash deposit of $25,000. These companies do the |
| This is exactly what it sounds like. It's an account | | | | trading for you. You tell them your risk tolerance and |
| that you can try to see if you like the companies | | | | they trade your money. They'll charge you around |
| services. There's no deposit required. You just need | | | | 30% of any profits they make. You have no way to |
| to give them your contact information. Sometimes a | | | | know for sure if these companies will make you |
| sales person will call you to try to get you to open a | | | | money. They can blow out your account and you |
| real account with them. | | | | have absolutely no recourse. |
| FX Practice Account | | | | So there you have it. All the FX trading account |
| This is a very important feature. If the broker you | | | | types you need to know about. Your next step? |
| currently have or are considering using doesn't have | | | | Determine your trading strategy and set up a |
| this, you need to move on. This feature allows you | | | | practice account today! |