Forex offers great opportunities and can be a great springboard to a prosperous life and financial independence, or it can be just as easy to go bust. Newcomers who want to earn good money do not know which account is the best to open. There are different types of forex accounts, all of which have different conditions and possibilities.
Types of forex accounts
Demo account
Before you start trading on a live account, you will need to spend a few months on a demo account. Every broker offers a possibility to trade on a demo account and hone your skills. A demo account differs from a real one in the absence of risk of loss of your funds, because you are managing virtual money.
You can choose any deposit and trade just like in reality, with two differences — you will not get the money you earn and you will not feel all the emotions, as you would feel in real trading. But everything is real — the prices, the trading conditions, the news, the charts.
Standard account
This is a real account, where you will put your real, "own" money, and use it to take risks in real trading. Normally the spread is fixed, but it depends on the choice of broker; different forex brokers offer different terms.
Ecn account
This forex account type has one peculiarity, which is absence of slippage and intermediary banks, and direct interaction of market participants. Any trader can see orders to buy or sell, and the traders have the ability to evaluate the volume of orders. This type of account is great for scalping, because it is facilitated by seeing the volume of orders. When you open such an account, you can choose through whom you will buy and sell.
In this case there is no need in big volumes, the high liquidity is achieved not by volumes, but by numbers. Scalping and pipsing is not restricted, there are no requotes.
Cent account
The idea behind this account is that you can invest a minimum amount and trade with little risk. As the name implies, the amount you deposit on your account is displayed in cents. Whatever you earn or lose is also not counted in dollars, but in cents.
If you don't know which forex account to open because you want to trade on the real account, but you are afraid of losing money or you don't want to invest a big sum, you can choose this kind of account. This type of account is great for beginners and differs from the demo account in that you can trade for real, you can feel the emotions that arise only in real trading. However, you will not risk any money, as losing 5 or 10 dollars is not too much of an adverse effect on your finances, and it's perfectly acceptable. Many beginning traders switch to a cent account from a manual trading account to get the adrenaline of the trading process. You can quickly become accustomed to the demo account, and the subsequent real trading will be confusing.
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