iBlogForex » Forex Mini Trading

Trading Forex With A Mini Account

Jon — Tue, 04 Mar 2008 04:03:01 +0000

Most popular Forex brokers offer Forex mini trading accounts. Mini accounts are great for traders new to the Forex market and for those who have limited funds. Forex mini accounts can be opened with as little as $250, whereas standard accounts generally require $2,500.

In a mini account, the size of each contract is 10,000 units of the base currency (often USD), whereas in standard Forex accounts the size of each contract is 100,000. So, a Forex mini account allows you to trade 1/10th the size you could trade in a standard contract.

Another advantage of a Forex mini account is if compounding is part of your strategy you will be able to begin compounding earlier than you would if you had a standard account.

Most Forex brokers will give you the same tools and services regardless of what account type you have, so you really can’t lose by choosing a mini account.

Trading Currency As A Commodity

Jon — Mon, 03 Mar 2008 02:07:15 +0000

It is possible to trade currency as a commodity, however trading foreign currency (Forex) on the spot market is far more popular and has many advantages, including;

- No need to rollover contracts
- Futures contracts are generally for large dollar amounts, a Forex mini trading account will allow you to trade just $10,000 of currency
- The spot Forex market offers up to 200:1 leverage

- The spot Forex market is more liquid than futures
- Interest is calculated daily, not in the contract price
- Many brokers offer more currency pairs than they do futures

If you’re taxed in the U.S. it is possible to make a tax election so that your spot Forex trades receive the same concessional treatment as futures trades do.

If you’re familiar with trading commodities, it will not take you long to learn how spot Forex works, many Forex brokers offer free practise accounts so you can learn how it all works before putting any money on the line.

AC- Markets – A Swiss Forex Broker

Jon — Wed, 27 Feb 2008 04:53:31 +0000

AC-Markets is a popular swiss Forex broker. Trading with AC-Markets has the following benefits:
- Open a currency demo trading account for free
- Forex mini trading accounts
- No slippage & No re-quotes
- Guaranteed fills
- One click execution
- Spreads as low as 1 pip

- No commissions
- Up to 100:1 leverage (1% margin)
- NEW ability to trade spot gold & silver
- Regulated by the Swiss Federal Department of Finance
- Up-to-date Forex trading technology
- The only online Forex broker to be ISO 9001 & ISO 27001 certified.

You can open a free currency demo trading account to see if you like their platform. AC-Markets also offer Forex mini trading accounts which suit start up funds of $2,000 – $5,000 USD.