Get a Forex Account
If you want to become a Forex trader, you’ll need to have a Forex account. There is more than one kind of Forex account, so you’ll need to look into the individual accounts and see which one fits for you.
Though there are more than these three, the most common Forex accounts are the managed Forex account, the standard Forex account and the mini Forex account. Choosing the right Forex account is a big decision and not to be taken lightly.
Don’t choose one Forex account over another before you know as much as you can know about each individual Forex account. The definition of a managed Forex account means a Forex account that’s managed by someone and that someone is not you.
This can be both a good and bad Forex account to have. It’s good in that if you’re not that knowledgeable about how to run a Forex account, the moves are made by someone who is.
The bad news is that with this type of Forex account, as you become more knowledgeable about Forex, you might want to make decisions for yourself as to where to use your money but your hands will be tied.
A standard Forex account is usually the route many investors go, especially investors who are new to trading Forex. With this type of Forex account, the trader can see great leaps in income in a single day.
Sometimes those great leaps are the kind of income most people make over the course of a week or two. But, as with every upside, there is a down. You can also take the same great leap backward and end up losing your investment.
A mini Forex account is like the kid of the Forex accounts. Everything is smaller. Your initial investment is much smaller. Some brokers will let you open up a mini Forex account for as little as $250, others as little as $300.
Your potential loss is much less with a mini Forex account simply because you’re not putting up as much money. Plus, some brokers have a risk limit in place with a mini Forex account so you can trade with greater peace of mind.
If you have access to unlimited funds and you’re new to Forex, but want to open up a Forex account without taking the time to get educated about Forex, then start out small in order to keep your risks low. Open a min Forex account first and then graduate to a larger Forex account.