Forex Trading – Micro Account vs. Demo Account
The widely known standard Forex account has a smaller brother called Mini account and – not so well known – an even smaller brother called Micro account. While the reasonable minimum deposit for a standard account is somewhere arround $2,000 one can start trading with $25 in a Micro account.
Beginners who are about testing the waters of Forex trading, have to determine wether to paper trade with a Demo account or to get their feed wet with a Micro account. Before you start trading, you have to have a strategy anyways. As long as you dont have a strategy, dont play with real money! Given you already made your first steps in Forex trading, a Micro account could be the right choice for you. Here is why…
The main difference is that a Micro account lets you trade with real money, while keeping your risk manageable at the same time. For a demo account, trading with virtual money means no actual risk. People tend to play since its play money. Therefore it often happens that demo traders are quite successful with their demo accounts, but experience massive losses when switching to live trading. Why that?
With live trading, emotion comes into play. A Micro account can help you to control your trading behavior before you start to risk larger amounts of capital. A Micro account requires the same discipline and management of risks as a Standard account. When you start with to trade successful with your Micro account you can move on to a Standard account with poise.
Nearly all partner brokers of FxBees.com also offer Micro accounts. So sign up with FxBees.com and get it rolling!
Tags: currency trading, Forex, Forex Trading, micro account, Standard Account, Trading