How to Choose the Perfect Forex Account

The client’s personal account opened with a brokerage company is called a trading account. It’s used to make all transactions on the market. Today, we’re going to compare different types of accounts and find out how to choose the right one for you.

Opening an account is the first serious step one must take when entering Forex. Usually, there are multiple types of trading accounts available, and each one has a particular set of parameters optimized for a specific type of trading. A trading account is chosen based on the trading style and experience of the trader, their goals, and the desired amount of profit. Traders can also choose a suitable account type to test Forex robots and trading strategies.

Accounts can be divided into types based on the following criteria:

  • minimum deposit;
  • minimum trading volume;
  • type of the trading platform;
  • leverage size;
  • type of spread (fixed or floating);
  • presence and size of swaps.

How to choose a trading account?

Here at Grand Capital, we consider the needs of all traders and provide our clients with the most popular types of trading accounts with favorable trading conditions.

  1. Demo Account

    Demo accounts are designed to teach traders the basics of the foreign exchange market. This is a simulator of a real account that completely duplicates all its functions with the exception of one—all trading operations in a demo account using virtual money. Take your time before you start trading with real money! Even experienced traders don’t dismiss demo accounts. Make sure to try demo trading before opening a real account.

    A demo account duplicates the parameters of real trading accounts provided by the broker, namely:

    • leverage;
    • deposit currency options;
    • hedging or netting in MetaTrader 5
    • Demo accounts are used by novice traders for practice. You can learn your way around the trading terminal, master the tools of technical analysis, learn how to open and close trades, and manage open transactions.

    Experienced traders use demo accounts to develop and test trading strategies, to test Forex robots on various currency pairs in real-time.

    Open a demo account

  2. Cent (Micro) Account

    Micro is a real account, but with a small minimum deposit requirement: from $1 to $10. This makes it suitable for training, just like demo accounts. Of course, high profits are out of the question when trading in a Micro account, but with its help, you can learn the basics of trading and test your trading strategies. A cent account, like a demo account, is indispensable for a novice trader, because it allows you to trade with real money, but without serious losses. Unlike the Standard trading account, where trading operations are measured in dollars and incent accounts, everything is presented in cents. This means that a $10 deposit in such an account looks like 1,000 cents.

    Account details:

    • minimum deposit: $10;
    • spread: from 1 pip;
    • number of trading instruments: 66;
    • leverage: up to 1:500;
    • account currency: dollar, euro, ruble, a pound sterling;
    • additional advantages: ability to use both for training and for testing strategies and advisors.

    Open a micro account

  3. Standard Account

    This account type is also known as classic. It provides a wide range of trading instruments and fixed spreads, it also allows placing trades of a large volume. Standard accounts offer the widest range of trading instruments to traders: from major currency pairs to commodity and energy futures.

    Account details:

    • minimum deposit: $100;
    • spread: from 1 pip;
    • number of trading instruments: 330 (currencies, metals, CFDs on indices and shares, commodity and energy futures);
    • leverage: up to 1: 500;
    • account currency: dollar, euro, ruble, pound sterling, yen, gold, bitcoin, Ethereum;
    • additional benefits: 40% bonus with every deposit, no volume restrictions.

    Open a standard account

  4. ECN Account

    ECN accounts use the Electronic Communication Network, which allows sending orders directly to the market, completely eliminating intermediaries.

    Market orders are transmitted into a single order book and processed by internal processing centers of the network in real-time. A special algorithm finds opposite trade orders, which are automatically executed when the currency pair, price, and trading volume match.

    EСN accounts are most often used for intraday trading, with numerous trades opened by the trader within one day. A distinctive feature of this account is the use of a dynamic spread that is smaller than the fixed spread of Standard accounts.

    Thanks to the cutting-edge software of AMTS, ECN accounts provide access to the markets of high liquidity and instant execution of trades at the best possible price. It’s also the most comfortable account for scalping and trading robots.

    Account details:

    • minimum deposit: $500
    • spread: from 0.4 pips;
    • number of trading instruments: 38 (currency pairs and cryptocurrencies);
    • leverage: up to 1:100;
    • account currency: US dollars;
    • additional benefits: Depth of Market and quotes from top market makers: Bank of America, Deutsche Bank, BNP Paribas, Société Générale, and the largest cryptocurrency exchanges.

    Open an ECN Account

  5. Swap-Free, or Islamic Accounts

    The main feature of the Swap Free account: there are no swaps—commissions for the transfer of open trade to the next trading day.

    Originally, Swap-Free accounts were designed for traders who couldn’t trade with swaps due to their religious beliefs. However, this account can be valuable to traders who employ long-term strategies, as the absence of swaps means no extra expenses when transferring a position through midnight.

    Account details:

    • minimum deposit: $100;
    • spread: from 1 pip;
    • number of trading instruments: 330;
    • leverage: up to 1:500;
    • account currency: US dollar;
    • additional benefits: ability to make an additional profit due to the absence of swaps.

    Open a Swap Free account

  6. Crypto Account

    Crypto accounts are ECN accounts optimized for cryptocurrency trading.

    Account details:

    • minimum deposit: $100;
    • spread: from 0.4 pips;
    • number of trading instruments: 68 cryptocurrency pairs;
    • leverage: 1:3;
    • account currency: US dollar;
    • additional advantages: two-factor verification, personal manager, and the ability to deposit in any currency through the most popular payment systems.

    Open a Crypto account

  7. MT5 Account

    MT5 accounts allow trading in the cutting-edge terminal MetaTrader 5 and provide the best conditions for algorithmic trading.

    Account details:

    • minimum deposit: $100;
    • spread: from 0.4 pips;
    • number of trading instruments: over 450 (currencies, metals, CFDs on indices and shares, commodity and energy futures);
    • leverage: up to 1: 100;
    • account currency: US dollar;
    • additional advantages: depth of market, advanced strategy tester, trading robots of any complexity.

    Open an MT5 account

Now that you have all the information, you can choose an account or even several accounts that are perfect for your trading purposes. Start with a Demo account, hone your skills on a Micro account and start real trading.

Published On Wed, 4 May 2022

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Information, charts or examples contained in this blog post are for illustration and educational purposes only. It should not be considered as an advice or endorsement to purchase or sell any security or financial instrument. We do not and cannot give any kind of financial advice. No employee or persons associated with us are registered or authorized to give financial advice. We do not trade on anyone's behalf, and we do not recommend any broker. On certain occasions, we have a material link to the product or service mentioned in the article. This may be in the form of compensation or remuneration.