Best Forex Micro Accounts

Pros:

• Learn the ropes, without breaking the bank. A demo account can’t always capture the “feel” of real trading. With a micro account, beginner traders can get the feel of real forex trading without risking huge amounts of investment capital.
• Precision matters. You don’t always want to add another 100,000 units to your position. Sometimes smaller denominations allow you to get to just the right amount, and micro accounts let you trade in increments of 1,000 units.

Cons:

• You won’t be raking it in. You’ll likely be trading with significantly smaller amounts of investment capital (unless you are building larger trades in increments – or, lots – of 1,000 units). With small trade sizes, less will be at risk, but you won’t be seeing any huge gains, either. Spreads also tend to be higher on micro accounts.

The only difference between a micro account and a mini account is the contract size. While the contract size for a micro account is 1,000 units of currency, the contract size for a mini account is 10,000 units of currency. It’s worth noting that each account type comes with its own set of tradeoffs and unique trading conditions. For instance, you may get offered lower spreads and higher leverage with a larger account type.

Some account types will even let you choose from among all three contract sizes. When using a MetaTrader account, for example, traders can choose from 0.01 of a standard lot (which is the equivalent of a micro contract), 0.10 of a standard lot mini contract, and of course the full 1.00 standard lot size.

Like with micro and mini accounts, the only difference between micro accounts and standard accounts is the contract size. With a micro account, the contract size is 1,000 units of currency, whereas the standard contract size jumps up to 100,000 units of currency. It’s worth noting that most micro accounts do not have a minimum deposit requirement, whereas standard accounts (usually) require a higher minimum deposit.

Micro accounts are good for beginner traders, as it lets them trade with a relatively small amount of investment capital, hence enabling them to better manage their risk and limit potential trading losses. In addition, some trading strategies may require more precise trade sizes where a micro contract can be more effective than other contract sizes.

The key advantage of a micro account is the fact that it enables beginner traders to establish smaller trade sizes in order to limit their potential trading losses, while still gaining exposure to the market and to real-life trading experiences. Micro accounts provide an ideal way for a new trader to practice trading in the markets, without risking large amounts of capital.

The main disadvantage of a micro account is the fact it limits your profit potential, as you will be trading with a relatively small amount of investment capital. It’s also worth noting that spreads on a micro account are typically higher than what you’d find with a standard account.

Demo accounts allow traders to place trades using virtual (fake) money. This allows traders to gain experience without risking any real money. However, because demo account users are trading with virtual money, they won’t experience the emotional highs and lows that come along with profiting from a trade – or losing money. With a micro account, a beginner trader can feel how it is to trade in real life, with real money, and real risks – without putting significant capital in danger.

The suitability of a micro account will depend on your personal trading objectives. If you are aiming to gain more trading experience while risking minimal investment capital, then the micro account might be a good fit for you. However, if you are seeking lower trading costs and greater potential for large profits, then a micro account probably isn’t your best option.

A micro lot is 1,000 units of currency, and the actual cost for a micro-lot trade will depend on the currency pair you are trading, as well on the spread and any per-trade commissions you’ll be paying when opening the trade.

Let’s look at an example of how this works. A micro lot for the EUR/USD pair would be 1,000 units of euros. A one-pip move on the price of the EUR/USD would come to roughly 10 cents. You’d then need to factor in any per-trade commissions charged by your broker.

A micro account offers you the ability to trade 1,000 units at a time, also known as a micro lot. The MetaTrader 4 (MT4) platform allows for a wide range of flexibility with account and lot size. MetaTrader enables traders to go as big as one full standard lot (100,000 units) or as small as 0.01 standard lot (one micro lot).

Nearly every forex broker offers CFD trading, with the ability to trade CFDs that track major indices like the NASDAQ 100 (though CFDs are not available to residents of the U.S.).

The NASDAQ 100 futures index is also referred to as the NAS100 or USTech 100, though the naming conventions may vary across brokers.

A micro lot will be 1,000 units of the index, which is priced in dollars (index price x contract size x leverage multiplier = trade value).