Before you can become a Forex Market trader you will need a Forex trading account. There are several Forex accounts to choose from, do your research to find the one that fits your needs. The most common Forex trading accounts are as follows; the standard, the mini, and the managed. Do not rush in to setting up an account, choosing the proper one for you is very important, so take your time and find the right Forex account for you.
Choose a Forex account only after you have learnt everything you can about each type of account. A managed account is an account that is NOT managed by you. This type of account can be a good thing or a bad thing. The good part of a managed account is, if you lack the experience to manage a Forex account you can get someone who is.
The bad part of managed accounts is, as you get more experienced in the Forex market you may find your trade strategy differs from your manager and there is little you can do. The standard Forex trading account is the most popular, especially among beginner Forex traders.
You can see great single day gains in this type of trading account. Some of these single day gains can be more than most people make in a week. Be aware, that same one day gain can just as easily be erased the very next day.
The third type of Forex trading account we are going to cover today is called the mini. A mini account is just what it sounds like. You can open a trading account with a minimal account of money. If you look, you can find a broker that will let you open a mini account for as little as $300.
A mini Forex trading account can be one way to protect yourself in the early days of your trading career. Less money invested less money to lose. Several brokers will even put a risk limit on your account to help protect your investment and lower your stress level. A beginner Forex trader with an unlimited account is a recipe for disaster. You can always move up to a larger account after you have some success in the Forex market. Then you’ll be trading with your gains not your seed money.
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