Forex is a pure financial market that is being traded globally with the greatest trade volume. Round the clock trade makes it the most appealing financial marketplace. In order to try your skills in forex, you need to open a forex trading account. Different types of accounts are opened for Forex Trade. However, the most favored ones are:
- Standard Forex Trading Account
- Mini Trading Account
- Managed Trading Account
You can choose the type of account that suits your circumstances. The choice of the type of account depends upon your capital, trade hours, trading frequency, etc. Thus your capital, knowledge, and skills to trade will help you to decide which account meets your criteria and best for you. All of these types of accounts have their own characteristics, benefits, and limitations.
Standard Forex Trading Account
The most widely opened forex trading account is a Standard Account. It’s a wide range of facilities that make it the most common forex account. It gives you many facilities such as:
This account provides you astonishing leverage of 100:1. It means that you can trade at $100 if you have only $1 in your forex account. With just a slight capital you can conduct great trade deals with standard accounts.
With the Standard forex account, you can deal with a standard lot of $100000. In fact, you can trade with more than one standard lots at the same time. For this, you just need to have $1000 for each standard lot in your account.
As it is the most widely favored account for forex trade, the forex brokers also provide more facilities to the standard account holders as compared to other accounts. Thus you can enjoy more perks with it.
Although it has many advantages yet it also has a limitation as well.
As the forex brokers provide better services to this account holder, so they demand a certain fixed initial capital of $2000. But some brokers even demand more for initial capital such as $5000 – $10000.