Forex Mini Accounts

Forex mini accounts are smaller fully functional forex accounts that are perfect for beginners to test their skills and get a feel for the forex market, without having to risk a lot of money upfront.

A regular forex account usually requires at least a $2000 deposit, whereas a mini account only needs a few hundred dollars to get you started.

Forex is traded in lots which are 100,000 units of a currency.  100,000 units are a lot to trade with even if you can leverage your account.  Forex Mini accounts trade with much smaller lots, down to 10,000 units. This also has an impact in the way your account is affected when there's a swing in the market. 

Click Here to access a signal service that recommends what and when to trade

In a standard forex account each pip is worth $10, which means that if the market goes down 100 pips, then you will be $1000 in the hole. These swings are obviously risky if you only have a few thousand in your account.  A mini account on the other hand only has a pip value of $1, so your loss would only be $100 in the same scenario.

This means that you can do many more trades and better handle the swings with a mini account for the same amount of money.  Most brokers offer forex mini accounts with 100-200 times leverage.

You will hear the term "pip" used extensively in the world of forex, it stands for "percentage in point".  A pip is equal to 1/100th of 1 percent, so for example if you were to buy the currency pair EUR/USD at 1.40 and sell it at 1.41, you have gained 100 pips.

If you really do not want to risk any significant amount of money or capital, then a forex micro account can be a viable option.  Micro accounts can be opened for no more than $25. Though, you are not going to become a millionaire from trading a micro account, they are highly useful for testing out new strategies and software.

Because your lot size is very small, you can test multiple trading strategies or forex expert advisors and get the same information for $25 that you may otherwise spend significantly more to learn with a standard account.  Forex micro accounts can usually be leveraged to the same levels as forex mini accounts and forex standard accounts.

Click Here to access a signal service that recommends what and when to trade

Though all brokers offer demo accounts which trade with play money, they do not really give you the sense of urgency that trading with your own money does.  It's often recommended that new traders begin with demo accounts, but what is not normally told is that demo accounts do not prepare you to deal with the emotions that arise from trading forex with real money.

It's easy to stay cool and collected when you are not risking anything, but try trading with real money, even small amounts, and greed, excitement and fear will rush trough your body and there's nothing wrong with that, except that temptation may get the better of you.

So, instead of trading for a month or more with a demo account, you can try trading with a mini or micro account, depending on your budget.  It's also a great opportunity to start learning about important skills such as risk control and money management that are paramount to ensuring you don't over-extend your trading limits.

Even experienced traders use forex mini accounts extensively to test new strategies and software.  If you are running automated forex system trading software it's an even better idea to start out with a small account to test your skills and trading strategies.

Make sure you sign up to receive your free copy of "Beginners Introduction to Forex Trading".  A must read for those interested in learning how to trade the forex market.

Note: Forex Trading is a very risky form of online investment and is not suitable for many traders. Please read the investment disclaimer on Forex trading.  All information on this website is for informational purposes only. The use of this website constitutes acceptance of our terms and investment disclaimer.