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:
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.
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:
Experienced traders use demo accounts to develop and test trading strategies, to test Forex robots on various currency pairs in real-time.
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.
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.
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.
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.
Crypto accounts are ECN accounts optimized for cryptocurrency trading.
MT5 accounts allow trading in the cutting-edge terminal MetaTrader 5 and provide the best conditions for algorithmic trading.
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.