[divider style=”solid” top=”25″ bottom=”30″][dropcap]W[/dropcap]hen you are starting in the world of trading, it is important to choose the right account type. While there are many options to choose from, a micro account is often the best choice for beginner traders. We are going to uncover micro account basics and introduce you to its benefits.
What is a micro account?
A micro account is a type of account that allows people to trade in the Forex market. This type of account is good for beginners who want to trade but do not want to risk a lot of money. The smallest contract in a micro account is 1,000 units of currency.
Note, that it is the most common type of account used by retail investors in the foreign exchange market.
We have highlighted 5 benefits to tell you how useful a micro account can be if you are a beginner trader. Let’s start with it:
- Gives a good starting point
The micro account offers you enough time to study trading tips and improve your trading skills. It allows learning trading subtleties without risking too much money at once, giving beginners time and confidence before taking on larger investments with more risk involved.
- Using mini lots
Mini lots are the perfect way to trade if you want more control over your risk. They allow traders with forex mini accounts greater flexibility in what they are trading and how much it costs. Even though this type of account cannot execute standard trades like other types do (because of its small size), there is still a lot for them to get out of while exploring all options available.
- More leverage opportunity
Some traders choose to use mini forex trading accounts because the brokers offer more leverage when you trade in mini lots. This makes it less risky for the trader and also lowers the trade amount.
- High security
The advantages of a forex micro account are similar to those offered by standard accounts but far safer and less risky. You trade with smaller amounts, which means you have greater control over your investment as well as being able to diversify more easily.
- Minimum deposit
Very often beginners are afraid to take a risk and trade with a big amount of money. The great thing about micro accounts is that everyone can start trading with the minimum initial deposit.
If you are a beginner trader, then a micro account is the perfect option for you. As you see, it offers many benefits over other types of trading accounts, such as lower minimum deposits and the ability to use smaller lot sizes.
By using a micro account, you can learn how to trade without risking too much money and build your confidence before moving on to a standard account. So if you are ready to start trading but are unsure about which type of account is right for you, choose this one definitely.