subject: Analyzing Forex Accounts: Mini Vs Demo [print this page] An innovation on the forex standard account is its younger brother the forex mini account. $2000 is the least possible amount desired to open for standard accounts. With only $400, one can start a mini account.
With regards to trading lots, "mini lots" is the tag used for Mini accounts. For a Standard FX account, the pip value is $10 meaning if the market moves opportunely for you in say 100 pips then you would make $1000. The Mini account has a much lower pip which is $1 so you just get $100 from a advantageous movement of 100 pips.
If you are looking for a smaller account, there is furthermore a "micro account". $25 is all you need to start one. In this account, $10 would be the byproduct of a beneficial 100 pip movement.
The mini and micro accounts are used by novice traders for their preference. While demo accounts that require no money for trading are procurable, mini accounts have a value all their own.
That goal is that you will be transacting with real money. Dealing with real money will assist your trading more closely level what it will be like when you escalate to trading a standard account.
You see, with a Forex demo account you absolutely have nothing at risk. Frankly, people are likely to "play" with "play money". This is the reason so many entry level Forex traders do fascinating things in their Forex demo account but then do badly when trading with real money in a standard account.
Your task when trading your Forex mini account is to approximately imitate what you will do when you move up to a standard account. You will have a chance to put your trading plans to the test yet at the same time having a minuscule amount of money on the table.
On your part, to make the mini account emphatic, engage the same regard and management of risks that are used in the standard account. The end result would be successful FX trading by accommodating the applicable discipline levels.
When you are prosperously able to trade your Forex mini account you can then step into a standard account with poise.
