Forex is a global market where currencies are traded against each other. The foreign exchange market is made up of several different markets, including the spot market, the forward market, and the futures market.
Micro account traders are typically people who trade small amounts of currency on a regular basis. These traders often use technical analysis to make their decisions.
What is Micro Account in Forex?
Micro accounts allow forex traders to trade with just 1,000 units of currency.
The global forex market has experienced incredible growth over the past few decades. More than $6.59 trillion is traded every day on the market, according to the most recent Triennial Central Bank survey by BIS.
With the influx of new forex traders entering the market every year, micro accounts have become a popular option for traders starting out in forex trading.
Forex traders can now trade with a small contract size of only 1,000 currency units. This allows beginners to start trading forex and seasoned traders to try new strategies or different brokers.
Micro accounts are not just for beginners, but they can also be used to make precise trades on larger positions.
Trade precision: To trade 263,000 units, a trader would need to choose between 200,000 and 300,000. A mini account would only allow for 260,000 or 270,000. The micro contract, however, would allow for trades of exactly 263,000.
Forex Micro Account Vs Standard Account
Forex trading can be a volatile and technical market. It can be confusing for those new to forex trading to decide which account is right for them.
There are two types of forex accounts, standard and micro. Standard accounts are for larger trades. Micro accounts are best for people who only want to trade small amounts. Each account has its advantages and disadvantages.
How Micro Account Is Calculated
Forex micro lots equal 1,000 units of base currency. A standard account lot equals ten mini accounts lots. This is in turn equal to ten micro accounts lots.
- 1 micro lot = 1,000 currency units
- 1 mini lot = 10 micro lots = 10,000 currency units
- 1 standard lot = 10 mini lots = 100 micro lots = 100,000 currency units
The Best Leverage For Micro Account
Micro account holders have many options for leverage. There are many options available to micro account holders, including using margin, leverage with CFDs and using margin for ETF purchases.
You can also leverage in unique ways that are not available to all account holders. These include using cryptocurrency trading to shorten stocks and leveraging to buy ETFs.
Experimenting with different leverage options is the best way to determine which one works for you.
What Can You Trade On A Micro Account?
Micro trading is about small profits. It can be a great way for you to get started in stock market. These are the five things that you can trade with a micro account.
- stocks
- options
- futures
- currencies
- commodities.
Is Micro Account Same As Cent Account?
Micro account is often interchangeable with cent account. They are different. A micro account is a type of bank account with a lower balance limit that a cent account.
A micro account may have a $100 balance limit, while a cent account might have $10,000.
List Of Brokers With The Best Micro Account You Should Consider
Micro account brokers are a great way to get started with investing, as they offer lower minimum deposit requirements and fewer investment restrictions. While there are many reputable micro account brokers, Here are 12 brokers that we think are worth considering:
1.EToro
EToro is an online broker, was established in 2006. It offers CFDs as well as Social Trading. The head office is located in Cyprus, UK. eToro has been in business for more than 14 years and is supervised by the Financial Conduct Authority and Cyprus Securities and Exchange Commission.
Pros:
- Used By 6,000,000+ Traders
- Regulated By Financial Conduct Authority, CySEC and ASIC
- Min. Deposit from $200
Cons:
- Inactivity Fee
- A limited range of instruments
- Doesn’t allow scalping
eToro gives traders the option to trade in CFDs, social trading and eToro traders must make a minimum deposit $200. The platform can be used by traders of all levels from novice to expert.
Traders have access to over 100 instruments and more than 50 currency pairs via eToro’s user-friendly custom trading platform, which can be accessed as a web-based application. eToro offers mobile apps for Android or iOS that make it easy to monitor trades and execute them.
2. HYCM
HYCM is online broker that was established in 1977, offers Forex and CFDs trading via the popular MT4 forex trading platform and mobile apps for Android or iOS.
Pros:
- Segregates client funds
- Limited range of instruments are regulated by the Financial Conduct Authority
- Min. Deposit starting at $1
Cons:
- Doesn’t offer VPS
- Inactivity Fee
- Not ASIC Regulated
Traders who are just starting with HYCM need to deposit at least $100. They also have the option to open a demo account. This account is perfect for novice and experienced traders.
Trade is possible with a wide range of currencies and instruments:
- Over 100 instruments
- Over 40 currency pairs
3. FXPrimus
FXPrimus is an internet broker that offers Forex trading and Social Trading. It was founded in 2009 and has a head office based in Cyprus.
- Regulated By the Cyprus Securities and Exchange Commission, The markets in financial instrument Directive (MiFID),
- More than 10,000 traders
Pros:
- Segregates client funds
- Established in 2009
- Regulated By CySEC, MiFID
- Min. Deposit from $100
Cons:
- A limited range of instruments
- Not FCA Regulated
FXPrimus has been awarded numerous industry awards over the past 11 years. It offers a wide range of instruments and currency trading pairs. FXPrimus has over 125 instruments for trading, including 43 currency pairs.
Read Also:
Top 10 Most Reputable Offshore Brokers to Day Trade in 2022
6 BEST Crypto Exchanges & Trading Platforms June 2022
List of 15 Crypto-Friendly Banks in the UK 2022
4. Roboforex
Roboforex is an online broker that offers trading Forex and CFDs. It was established in 2009 by Roboforex.
RoboForex has been licensed by the International Financial Services Commission with license number IFSC/60/271/TS.
Pros:
- Segregates client funds
- Regulated By IFSC Belize
- Min. Deposit starting at $10
Cons:
- A limited range of instruments
- Not FCA Regulated
Roboforex requires traders to deposit a minimum of $1 to start trading. Demo accounts are also available to those who want to learn more about the platform. Roboforex is able to accommodate traders of all levels, including beginners and experienced.
They can also trade a variety of currencies and instruments. Roboforex has over 100 instruments, and more than 35 currency pairs.
Roboforex provides traders with both the MetaTrader platforms MT4 & MT5 and the cTrader platform, which is specifically designed for traders. Roboforex offers mobile apps for iOS and Android.
5. Axi
Axi, an online broker, was established in 2007. It offers Forex, CFDs, and Social Trading. Axi has an Australian head office and no minimum deposit to get started. A demo account is also available. ASIC has authorized and regulated Axi.
Pros:
- Used By 221,000+ Traders
- Regulated By Financial Conduct Authority and ASIC
- Min. Deposit starting at $1
Cons:
- A limited range of instruments
Axi can accommodate different levels of traders. It offers the MT4 forex trading platform and mobile apps for Android or iOS.
6. FBS
FBS is a Forex and CFD Broker that is licensed and regulated by both the International Financial Services Commission of Belize (IFSC) and the Cyprus Securities and Exchange Commissions (CySEC).
Pros:
- Negative Balance Protection
- Excellent Regulation
- Available in Multiple Countries
- Award-Winning Service
Cons:
- Limited Tradable assets
- Limited Trading Platforms
FBS allows users to trade Forex, Indices and Stocks on the MetaTrader 4 and MetaTrader 5 trading platforms.
7. IronFX
IronFX is the tradename of Notesco Limited, based in Bermuda. Regulated by ASIC, CySEC and FCA, IronFX offers multi-asset Forex and CFD trading experiences with 7 account types. You can trade on more than 200 financial instruments, including Forex, Metals and Indices.
Pros:
- Segregates client funds
- Regulated By Financial Conduct Authority, CySEC, and ASIC
Cons:
- Min. Deposit starting at $500
- IronFX allows users to trade on MetaTrader 4 for PC, Mac, Web and Mobile.
8. CMTrading
CMTrading is South African-based forex & CFD brokerage, is regulated under the business name Blackstone Marketing SA LTD (PTY).
The underlying assets that can be traded include close to 50 forex pairs and a selection major equity indices. There are also shares of over 50 US-based businesses, as well commodity and crypto CFDs.
Pros:
- Segregated Client Funds
- Low Minimum Deposit
Cons:
- Limited Range of Instruments
All assets are available for trading via the well-known MetaTrader 5, (MT5 platform) or the Sirix WebTrader.
9.FXOpen
FXOpen is online CFD broker, was established in 2005. FXOpen is separately regulated in four countries and is overseen in part by the Financial Conduct Authority in the UK and the Australian Securities and Investments Commission in Australia.
There are CFDs available on metals, stocks indices and commodities, as well as CFDs based upon cryptocurrencies such as bitcoin, Ethereum, and Litecoin.
Pros:
- Segregates client funds
- Regulated By Financial Conduct Authority and ASIC
- Min. Deposit starting at $1
Cons:
- Inactivity Fee
- A limited range of instruments
FXOpen’s standard platform is MetaTrader 4 (MT4) downloadable, retail trading platform. It can also be accessed via a web-based option that can be accessed on any device.
You can deposit via bank transfer, major credit and debit cards, as well as a variety of online money transfer services. Additionally, you can send cryptocurrencies directly to FXOpen’s cryptocurrency wallet.
10. Dukascopy
Dukascopy, an online forex & CFD broker, is based in Geneva in Switzerland. It has 2 subsidiaries: Dukascopy Europe IBS AS based Latvia and Dukascopy Japan K.k based in Tokyo.
Both subsidiaries are regulated in their respective countries. Dukascopy Bank, a major Swiss bank, is regulated as a bank as well as a securities dealer by the Swiss Financial Market Supervisory Authority.
Pros:
- Multiple Trading Tools
- Deposit Insurance Scheme
- Expert News and Analysis
Cons:
- No US Clients
- Restricted Leverage
- No MetaTrader 5
CFDs based upon cryptocurrencies, bonds, stocks and commodities are all available as trading instruments.
Binary options can also be accessed via the MetaTrader 4 and JForex platforms. Live, demo, and a gold account are available.
11.AvaTrade
AvaTrade is online broker that was established in 2006. They offer Forex, CFDs and Spread Betting. Their head office is located in The British Virgin Islands. ASIC, CySEC, and FCA regulate AvaTrade in Europe, Australia, Japan and South Africa.
Pros:
- Used By 200,000+ Traders
- Regulated By Central Bank of Ireland, ASIC. IIROC. FSA. FSB. UAE. BVI
- Min. Deposit from $100
Cons:
- Doesn’t offer VPS
- Not FCA Regulated
A minimum deposit of $250 is required to open an account with AvaTrade. A demo account can be opened for those who wish to familiarize themselves with the popular MT4 forex trading platform. AvaTrade offers mobile apps for iOS and Android.
12. XTB
XTB is European broker founded in 2002 and with offices in 13 countries around the world, is regulated by the UK Financial Conduct Authority (FRN 522157).
XTB is regulated and listed on the Warsaw Stock Exchange by the UK Financial Conduct Authority (FRN 52157).
Fintech company that combines innovative technology with financial services. It offers two platforms for clients:
- xStation5
- MT4
Pros:
- Lowest FX spreads
- Regulated By FCA (U.K.).
- Client accounts protected
- Emphasis placed on customer service
Cons:
- Does not accept U.S. clients
- Spread costs for non-FX are high
- No guaranteed stop loss
- No back testing or automated trading
Trader can choose between 25 crypto CFDs (9 individual crypto coins or 16 pairs), which are available seven days a week (from Wednesday through Friday at 3 o’clock).
Digital coins can be bought or sold by traders with a 2:1 leverage and a 365-day expiry.
Conclusion
Micro account in forex can be a profitable way to trade if done correctly. Micro account forex trading should only be used as a supplemental income stream and not relied on for primary income.
Make sure to do your research before starting a micro account forex trading strategy. Finally, always have a solid plan in place and stay disciplined so you can make consistent profits.
About Author
- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
Latest entries
- Forex TradingSeptember 23, 2023List of 10 Forex Brokers That Accept USDT Deposit In 2023
- BusinessSeptember 14, 2023Starting Your Own Business: Key Financial Elements You Should Know
- LoansSeptember 13, 202310 Most Legitimate Payday Loans Online Direct Lenders in Texas
- LoansSeptember 12, 202310 Best Payday Loans with Instant Funding to Debit Card in Missouri
