The client’s personal account opened with a brokerage company is called a trading account. It’s used to make all transactions on the market. Today, we’re going to compare different types of accounts and find out how to choose the right one for you.
Opening an account is the first serious step one must take when entering Forex. Usually, there are multiple types of trading accounts available, and each one has a particular set of parameters optimized for a specific type of trading. Trading account is chosen based on the trading style and experience of the trader, their goals and the desired amount of profit. Traders can also choose a suitable account type to test Forex robots and trading strategies.
Accounts can be divided into types based on the following criteria:
- minimum deposit;
- minimum trading volume;
- type of the trading platform;
- leverage size;
- type of spread (fixed or floating);
- presence and size of swaps.
How to choose a trading account?
Here at Grand Capital, we consider the needs of all traders and provide our clients with the most popular types of trading accounts with favorable trading conditions.
Demo account
Demo accounts are designed to teach traders the basics of the foreign exchange market. This is a simulator of a real account that completely duplicates all its functions with the exception of one—all trading operations in a demo account use virtual money. Take your time before you start trading with real money! Even experienced traders don’t dismiss demo accounts. Make sure to try demo trading before opening a real account.
A demo account duplicates the parameters of real trading accounts provided by the broker, namely:
- leverage;
- deposit currency options;
- hedging or netting in MetaTrader 5
- Demo accounts are used by novice trader for practice. You can learn your way around the trading terminal, master the tools of technical analysis, learn how to open and close trades, manage open transactions.
Experienced traders use demo accounts to develop and test trading strategies, to test Forex robots on various currency pairs in real time.
Cent (Micro) account
Micro is a real account, but with a small minimum deposit requirement: from $1 to $10. This makes it suitable for training, just like demo accounts. Of course, high profits are out of the question when trading in a Micro account, but with its help you can learn the basics of trading and test your trading strategies. A cent account, like a demo account, is indispensable for a novice trader, because it allows you to trade with real money, but without serious losses. Unlike the Standard trading account, where trading operations are measured in dollars, in cent accounts everything is presented in cents. This means that a $10 deposit in such an account looks like 1,000 cents.
Account details:
- minimum deposit: $10;
- spread: from 1 pip;
- number of trading instruments: 66;
- leverage: up to 1:500;
- account currency: dollar, euro, ruble, pound sterling;
- additional advantages: ability to use both for training and for testing strategies and advisors.
Standard account
This account type is also known as classic. It provides a wide range of trading instruments and fixed spreads, it also allows placing trades of a large volume. Standard accounts offer the widest range of trading instruments to traders: from major currency pairs to commodity and energy futures.
Account details:
- minimum deposit: $100;
- spread: from 1 pip;
- number of trading instruments: 330 (currencies, metals, CFDs on indices and shares, commodity and energy futures);
- leverage: up to 1: 500;
- account currency: dollar, euro, ruble, pound sterling, yen, gold, bitcoin, Ethereum;
- additional benefits: 40% bonus with every deposit, no volume restrictions.
ECN account
ECN accounts use the Electronic Communication Network, which allows sending orders directly to the market, completely eliminating intermediaries. Market orders are transmitted into a single order book and processed by internal processing centers of the network in real time. A special algorithm finds opposite trade orders, which are automatically executed when the currency pair, price, and the trading volume match.
EСN accounts are most often used for intraday trading, with numerous trades opened by the trader within one day. A distinctive feature of this account is the use of a dynamic spread that is smaller than the fixed spread of Standard accounts.
Thanks to the cutting-edge software of AMTS, ECN accounts provide access to the markets of high liquidity and instant execution of trades at the best possible price. It’s also the most comfortable account for scalping and trading robots.
Account details:
- minimum deposit: $500
- spread: from 0.4 pips;
- number of trading instruments: 38 (currency pairs and cryptocurrencies);
- leverage: up to 1:100;
- account currency: US dollars;
- additional benefits: Depth of Market and quotes from top market makers: Bank of America, Deutsche Bank, BNP Paribas, Société Générale and the largest cryptocurrency exchanges.
Swap Free accounts
The main feature of the Swap Free account: there are no swaps-commissions for the transfer of an open trade to the next trading day. Originally, Swap Free accounts were designed for traders who couldn’t trade with swaps due to their religious beliefs. However, this account can be valuable to traders who employ long-term strategies, as the absence of swaps means no extra expenses when transferring a position through midnight.
Account details:
- minimum deposit: $100;
- spread: from 1 pip;
- number of trading instruments: 330;
- leverage: up to 1:500;
- account currency: US dollar;
- additional benefits: ability to make additional profit due to the absence of swaps.
Crypto account
Crypto accounts are ECN accounts optimized for cryptocurrency trading.
Account details:
- minimum deposit: $100;
- spread: from 0.4 pips;
- number of trading instruments: 68 cryptocurrency pairs;
- leverage: 1:3;
- account currency: US dollar;
- additional advantages: two-factor verification, personal manager, the ability to deposit in any currency through the most popular payment systems.
MT5 account
MT5 accounts allow trading in the cutting-edge terminal MetaTrader 5 and provide the best conditions for algorithmic trading.
Account details:
- minimum deposit: $100;
- spread: from 0.4 pips;
- number of trading instruments: over 450 (currencies, metals, CFDs on indices and shares, commodity and energy futures);
- leverage: up to 1: 100;
- account currency: US dollar;
- additional advantages: depth of market, advanced strategy tester, trading robots of any complexity.
Now that you have all the information, you can choose an account or even several accounts that are perfect for your trading purposes. Start with a Demo account, hone your skills on a Micro account and start real trading.
Since 2023, ONShine Africa has been a consistent force behind a range of projects that support water access, infrastructure, children’s education, women’s empowerment, job creation, and environmental sustainability across Africa.