A mini forex trading account is designed for those who are new to forex trading or when the trading account balance is less then $10.000.
Mini forex account key points
- Only $250-$300 to open
- Up to 200:1 trade leverage
- 1 pip = $1 for EUR/USD and GBP/USD
- Smaller trade size
Mini forex account advantages
Build up confidence starting small
A trader can trade a mini forex account using 1 mini lot and building up lot size slowly when he makes profits in his account. A general rule is to trade ONLY 1 mini lot for every $1000 a trader has in account. For example, if an account is worth $5000, trader can take up to 5 mini lots.
Develop a forex trading strategy
Because on a mini forex account, pip value is $1 = 1 pip, trader can pay more attention on building a solid trading strategy without focusing on floating profit & Loss (P/L). Most traders with a small account balance trading on a standard account will tend to base trading decisions on profit &Loss and not on their trading strategy, they are emotionally too involved.
Their account balance fluctuations are so important that they even can