Mini forex account is an account that has been specifically designed for newcomers to the stock market
. It enables them to invest their money only in small amounts. This account enables the newcomer to trade in any of these five basic currencies EUR, CHF, USD, GBP, and JPY. Clients can open this account and start trading in forex market with a minimum amount of 500 dollars.
Clients who wish to trade in small amounts will have some restrictions put on them. For example there are restrictions on the number of trades they can keep open at any given time. There are also restrictions on how long the client can keep these positions open. These restrictions are bound to hamper anyones enthusiasm and make them change their mind about trading in the forex market. To overcome these restrictions a new concept was introduced called micro lots. These micro lots (0.05 lots) is the minimum volume that mini forex account holder can trade in.
These accounts enable the account holders to adjust their leverage. The clients can have leverage as low as 1:100 or as high as 1:500. Higher leverage allows the client to trade in greater amounts.
Mini Forex account holders can make use of the FOREX EXPERT ADVISOR, a MTS (mechanical trading system). The purpose of these MTS is to remove many factors that could complicate decision making. Thus by removing these factors the MTS enables the account holder to make well informed decisions.
For Muslims who wish to trade in the forex market, there is an Islamic version that allows them to trade without breaking their beliefs and the Sharia law.
These account holders can upgrade their account to either Standard forex account or premium forex account any time they want without paying any fee for the same.