Forex trading was once only for large banks, institutions, central banks, and wealthy investors. That’s no longer the case now. Anyone who aspires to be a successful Forex trader can now take part in the largest financial market in the world.
To trade in the Forex market, you will need a broker and a trading account. Forex brokers offer a variety of Forex trading accounts with varying features such as the required minimum deposit, base currency options, leverage and minimum trade lot. (see also Pros of a Forex Demo Account)
MINI TRADING ACCOUNT
For a start, if you are not willing to shell out a big amount of money for live trading, a mini account is perfect for you. For as low as $25, you can start foreign currency trading. Forex traders who wish to try out another FX broker use a mini account to check the broker’s services. Do not expect to be a millionaire with a mini account though. Because the account has a small minimum dealing sizes, the return may also be minimal. It may also lack some features given by a broker.
STANDARD TRADING ACCOUNT
With a required minimum deposit of $500, a standard account offers more sophistication than a mini account. Forex brokers also provide more services to standard account holders including tighter spreads, SMS alerts, trading signal alert services, and exclusive trading analyses.
VIP TRADING ACCOUNT
As the name implies, a VIP trading account is for VIP traders. Meaning, these traders have a deposit of $10,000 or more into their accounts. Forex brokers give only the best service to their VIP clients who are experienced and seasoned traders. This type of trading account has the highest minimum dealing sizes, allowing VIP traders to earn some good money. Some of the other perks they receive are tightest spreads, personalized trading reports, exclusive market analyses, and direct access to the brokers’ dealing desk.
So, which forex trading account is the best for you?
The answer relies solely on you. What are your personal needs? As a beginner, how much are you willing to risk? Would you go for a mini trading account with a low capital requirement but lacks sophistication in terms of services given, or a VIP trading account with a high capital requirement but is full of high-quality perks and benefits?