Choose Forex Mini Account and Micro Account with the Best Broker
In this era of floating money, everyone knows about forex trading. But most people don't know where to start as there are multiple account types are available for forex traders. However, you may consider a forex mini account or forex micro account if you are a beginner. You can understand these account types from the name. These accounts allow anyone to trade through the smaller size of investments. Our expert team created a comprehensive list of top 10 forex mini account brokers and forex micro account brokers. Also check out our compared forex mini vs micro account types, so you can choose the right one according to your trading style.
In other words, micro or mini accounts don't require a large investment. In fact, you will be able to trade by depositing as low as $50 or sometimes less than that. The micro account can be operated with 1,000 units, and this is a most simple method to start for the new traders or the experts who want to test a broker before pushing any investment. On the other hand, the forex mini account deals with 10,000 units.
If you are looking for a great kickoff to your forex career or even looking for new forex trading platforms to work with, you have reached the right page. Throughout the article, we will share everything related to both micro and mini forex accounts and the ways to choose forex mini account brokers and the forex micro account brokers.
Definition for Forex Micro and Mini Account
Basically, a forex micro or forex mini account is a forex trading account that comes with a smaller lot size position. Therefore, these accounts lower the possible risks, perhaps reducing the losses. Fundamentally, both accounts fall in the same category, but the micro account is much smaller lots than the forex mini account.
However, forex accounts are categorized into three main contract sizes, and the accounts are micro, mini, and standard. Let's see the basics of each account size.
- The forex micro account lot size starts from 1,000.
- For the forex mini account, the lot size is 10,000 units
- Whereas the standard account sized at 100,000 currency units
In the same way, each of these accounts has a different pip (percentage in point) reward, and it is lower for the micro and mini accounts. For instance, the movement price is 10 cents for the micro account, $1 for the mini account, and the standard account is $10.
Nowadays, some brokers offer an even smaller account known as a 'nano' account, which allows traders to trade at 100 base units equivalent to ($0.01). This certainly minimizes the risk and helps you to understand a forex broker and forex trading.
Working Procedure of Forex Micro and Mini Accounts
Basically, the forex micro account and mini accounts are for the new and inexperienced traders as it offers a tiny contract size. So, the useability of these accounts makes sense as they don't have any chance of significant loss. Therefore, micro and mini accounts can be very useful for the traders who are still in the learning stage or even thinking of starting forex trading.
Usually, the micro and mini accounts get the opportunity to the traders as the standard account holders. So, the account holders will be able to access charts, tools, analysis, platforms, and more.
The working procedure is simple; the micro account holders will need to take positions in multiples of 1,000 units while the mini account holders will enter multiple of 10,000 units. The good thing about the smaller lot size is, it enables the traders to trade diversely. This can be done by ordering a selection of currency pairs. Moreover, a newbie trader can get an idea about the risk and will not feel anything if they fail.
Pips and Forex Micro/Mini Accounts
The forex trading takes place through a quoted spread value such as EUR/USD 1:300. However, every investor invests with the hope of shifting the currency pair. This shift or price change is known as pip movement.
So, if we consider the example of 1:300 EUR/USD, the investor can predict that the euro (base currency) will move up against the US dollar (the quoted currency). Nevertheless, the quotation price shows up to four decimals (.3000 places). However, the decimal places can be changed for other currencies. For instance, the Japanese Yen shows the rate in two decimal places. So, the Japanese Yen can be shown as 123.62.
In the forex trading market showing the price shifts using pips is normal. However, the pip represents a small price change for a currency. The price change is measured in fractions, which means that the amount gained or lost while trading will be very small.
As a result, micro or mini accounts, as well as the standard accounts, calculate the currency units through lot sizes. Further, the pip rates are variable, and they will change according to the currency pairs as well as the price of the base currency.
In the case of a forex trading account, one pip is equivalent to $0.10 for micro account forex while it is $1 for mini accounts and the standard account's pip is $10. However, the rate changes based on the quote currencies.
Example of Forex Mini Account and Forex Micro Account
As we have mentioned earlier, a standard lot is 100,000, meaning a considerable investment is needed if anyone wants to make a purchase with no leverage.
Let's take the example of EUR/USD at 1.3000 we have mentioned above, if the euro’s price increases to 1.3075 and closes the trade, the calculation of the pip will be 75 units (1.3000-1.3075=0.0075). So, the gains for different account types will be-
- Forex micro account: 1,000 x 0.0075 = $7.50 earning
- Forex mini account: 10,000x 0.0075= $75 earning
- Forex standard account: 100,000x 0.0075= $750 earning.
Now, imagine the euro goes down to 1.2990, which represents a 10 pips loss. So, the loss calculation will be-
- Micro account forex: 1,000x 0.0010= loss of $1
- Mini account: 10,000x 0.0010= loss of $10
- Standard account: 100,000x 0.0010= loss of $100
However, forex brokers normally offer leverage on each account type so that the traders can take a position on risky trades through a small number of outlays. Brokers tend to credit the broker's account with extra funds to take a position in the large amount. So, whenever a trader is winning, he or she can order more currencies with the leverage and increase the gaining percentage.
How does leverage work on Mini and Micro Accounts?
Whenever you sign up with a broker, you will find their leverage offerings such as 100:1, 200:1, something like that. So, for a mini account positioned 100,000 sized forex mini lot will get 1,000 or 2,000 extras to increase the position. However, you have to keep in mind that leverage will increase not only the profitability but also losses too.
Let's explain with the example of 75 pip gains we have used previously. With the $1000 investment at 75 pip gain, a trader would make $750 through 100:1 leverage. So, a 10-pip movement in the opposite direction will cost $1,000, putting the initial expense at risk.
How to Choose Forex Mini Account Brokers or Forex Micro Account Brokers?
As many of the forex enthusiasts jumped to the forex market, the brokerage firms seemed to have a competition to grab more clients. Hence, the brokers offer many benefits to grab the attention of the traders. Further, the brokers also offer forex mini account and micro account forex to encourage the newbies, which makes the new traders confused to select the best forex broker.
With this in mind, we have sorted out the best forex mini account brokers and forex micro account brokers so you can choose the right one according to your trading style.
Regulation and Licenses
This is the foremost and important task to select the right broker. So, whenever you intend to register with a broker, don't forget to check their regulatory status and licenses. We recommend everyone to do this because numerous scam brokers lure new and inexperienced traders.
You will need to know the broker's location and check the broker's regulatory status accordingly. For example, UK brokers should be licensed by the FCA regulatory body. It is responsible for controlling the brokers from the UK and works as a safeguard of the trader's hard-earned money. FCA makes sure that the brokers are legitimate and manages the trading account fairly. Further, other major forex regulatory bodies globally, such as ASIC (Australia) or even the CySEC (Cyprus),, also ensure the traders' safety and make sure their investments don't get scammed. Find out our forex mini account brokers and forex micro account brokers list to choose the right account type with trusted and regulated broker.
However, by any chance, if you sign up with unregulated brokers or forex trading scams brokers, the regulatory bodies might not be able to help you out in case you get scammed. Hence, it is mandatory to check the broker's reputation and regulatory status before you decide to sign up with that.
Currency Pairs
Since you will be trading forex, you will need to play multiple currency pairs as you are in the learning phase. However, most of the experts suggest the new traders stick with the major currency pairs such as EUR/USD, GBP/USD, and more. But having access to other minor currencies will certainly help you to gain experience.
Moreover, the multiple currency pairs can help you toward creating a diverse forex portfolio. So, it would be great if you choose a micro or mini forex broker with a wide selection of currency pairs, including the majors, minors, and exotics. You find the currency pair offerings on the broker's website.
Trading Platform
Signing up with a broker will not just get you access to the forex world. Instead, you will need an intermediary to access the currencies via the broker. Forex trading platforms are such a bridge between the broker and the forex world that helps the traders to trade. So, access to the top, not the trading platform, is necessary. Most traders currently choose MetaTrader brokers, as this platform is easy to use and offers tremendous benefits to the traders and brokers. MetaTrader has two trading platforms MT4 and MT5.
Therefore, you may choose a MetaTrader 4 forex brokers or MetaTrader 5 forex brokers to trade via mini or micro-accounts.
Trading Tools
The access to the forex trading tools depends on the broker and platforms. Tools accelerate the trading capability and also offer many opportunities for the traders. For example, economic calendars and financial news are trading tools that can make the trader aware of any forex market movements depending on economic events.
Moreover, forex tools offer to study the historical data of a currency alongside the fundamental news analysis. These things can boost forex success. The tools also offer different technical indicators that help to analyze the forex market and assist you in taking any decision or changing the forex strategy.
However, tools may vary from broker to broker. So, it is advisable to check out and understand all the tools offered by a broker and compare them with other brokers. In this way, you can choose a broker with the highest benefits.
Trading Commission and Fees
Commissions are the main way that a broker can earn money. There, some brokers tend to charge more commissions than others to earn money. However, some brokers may charge a little commission and offer a lot of benefits.
So, check out the fees and commission structure of a broker before you decide to trade with them. However, brokers may offer a variable commission structure. But if you trade with reputed, you may not need to pay variable fees. Instead, the fees might be lower. To get a clear idea about commission and fees, you should observe the details of the commission and fees.
Spreads
Spreads are the difference between the buy and selling price of a currency pair. The price movements and the pips determine the spread. Hence, spreads can significantly impact when you buy or sell a currency. For the mini and micro-accounts, spreads are crucial. Let us explain spreads with an example.
Let's think you have a micro or mini account and trading EUR/USD. The buying price of the currency is 1.3100, and the selling price is 1.3105. As we have mentioned, spreads are represented by the pips. Here you will need to consider the last digit of each price. So, according to this example, the difference is 6. Hence, the spread on EUR/USD is 6 pips. However, the spread amount may vary on the platform's speed and brokers' capability as the market changes quickly. It will be better to know the broker's spreads offers and their capability.
Deposit and Withdrawal
Another important aspect of choosing a forex micro broker or mini broker. Of course, you will need to deposit funds into your account when you sign up with a broker. Numerous micro and forex mini brokers allow the trader to deposit conveniently through traditional bank transfers, cards, or even digital payment systems. However, some brokers may have a complex payment system that can hassle the traders, such as taking a long time or inconvenient methods. Hence, you should also look at your intended broker's finding or deposit methods.
On the other hand, when you make a profit, you will require an easy method to withdraw your fund. So, having an easy withdrawal option is also necessary while choosing a mini/micro account forex.
Customer Support
Some traders may not find the necessity of having a good support team unless they face any problem. However, it might not be evident that you always need to contact customer support all the time. But, whenever you contact, you will need a prompt response as your investment will be involved with that.
With that in mind, you ought to choose a broker that offers quick customer service through a range of communication methods. Nevertheless, as a newbie, you might not be able to know which forex broker offers the best customer service. Thus, you can check different forex broker reviews to find the brokers with the best customer support.
Most of the broker offer communication methods via phone, live chat, and email. However, some brokers may not offer 24/7 customer service. So, finding a forex broker with 24/7 service is a good sign. Furthermore, if your broker offers a community forum for the users, it will be a cherry on the cake as you may get the solution without contacting customer support.
How to Sign Up with the Desired Forex Broker?
Once you have selected the best forex mini account brokers or forex micro account brokers, the next step is to register with the broker. Without the registration, you will not be able to initiate any sort of trading activity. So, here we have listed the steps to initiate your very first forex trading.
Open an Account
Go to your intended broker's website and register by providing your information. The basic information you will need to provide is name, address, birth date, tax status, contact details. After that, you will need to input the financial details to deposit and withdraw the funds from the account. Another financial detail they might ask is your earning summary, employment status, net worth, etc. After you provide all the details, the broker will suggest an account type.
Questions on Prior Experience
Some brokers may ask the trader about their prior experience, as they need asses the new trader. So, you may need to provide some info if you have any prior experience. However, if you are totally new, you may skip this step. But if you contain any kind of experience, the broker might suggest a viable investment plan.
Know Your Customer Form
Known as KYC is a part of the sign-up process. In this part, traders will need to verify their identity with the registering broker. All the regulated brokers must possess this step. However, this is an automatic process where you will be required to upload your ID cards, such as a driver's license or passport. Sometimes a bank statement or utility bill.
Deposit Fund
This is the final step before your kickoff forex trading. However, this step comes after getting approval of your forex account with the broker. Once all the information is verified, you will be required to deposit some money to your newly opened forex trading account. Now you are ready to trade with your forex mini account or forex micro account.
How to Find the best Forex Broker for Mini and Micro Accounts
We have listed the top 10 forex brokers to start your trading career. But you may wonder how we compile our list or on what basis we sort the broker. Following are the strict criteria we follow to find a forex broker.
- Regulation and License: We always recommend the brokers that have regulation with top-tier regulatory bodies.
- Technical Indicators: We look for a broker with a wide range of technical indicators, as we believe that the more tools you have access to, the more you will learn.
- Low Commissions: Low or zero commission brokers are a gem.
- Tight Spreads: It provides you the opportunity to earn more money.
- Variations in Deposit and Withdrawn Option: The more options you will have, the more flexibly you can trade.
- Diverse Forex Pair: A vast selection of pairs helps a trader to learn about all the currencies and diversify the portfolio.
- User-friendly Platform: An easy-to-navigate and understandable forex trading platform will give you an edge while trading.
- Excellent Customer Support: We always check multiple forex broker reviews to identify the customer support's quality.
Forex Mini vs Micro Account
There are not many differences between the forex mini account and forex micro account. Technically the lots in mini or micro accounts are measured in units instead of dollars. So, the only noteworthy difference between these two is,
1,000 = 10 cents / pip = 1 micro lot
10,000 = $1/pip = 1 forex mini lot or 10 micro lots
Final Words
From this article, we can conclude that the forex mini account and forex micro account have some substantial advantages. It allows a trader to trade without putting the large investment at risk as the trader will trade in a small amount. Therefore, any newbie or risk-averse traders can use mini or micro accounts. However, it will take time to earn huge profits from these kinds of accounts.
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