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Do you know to choose the trading account type


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The success of the Forex market unimaginable because wherever you turn you would see Forex. Actually, it is not that easy to become successful and moreover, it is not that easy to remain in a market like a Forex market. But to your amazement, the Singaporean traders are still trading the market in fact; they are pro at trading the Forex market. There are times when the financial market is not in a good state but even in such state the Forex market did not fall. On a daily basis, around 4 trillion dollars is being traded and it is the mere success. Due to this success, people are getting attracted to the Forex market and most of the people are succeeding.  Of course, we do not boast, only good factors about the Forex market because the truth is there are negative factors as well but that doesn't make it any less profitable.  If you focus on the negative factors they are such as risks are high, skills are needed, and education is a must. If you do not know to handle the risks it will be difficult to trade the Forex market. However, one of the hardest decisions a trader has to make is to select the trading account. There are many accounts that you would stumble in trading so we decided to provide an overview of a few accounts. And here we go.


Long term vs. short term trading

Long-term trading is always preferred by the professional trader. Being a long-term trader you don’t have to worry much about the account type. However, if you scalp the market than it’s highly imperative that you are trading with a high-end brokerage firm like Saxo. Some brokers often have some trading restrictions for the scalpers. So make sure that you read the detail specifications of their account type before funding your trading account.


The Mini Trading Account

If you don't prefer to invest large amounts then, you should consider the mini online trading account because it is for naïve traders who do not wish to run a Forex career. You should have only $250-500 if you want to open this account and the brokerage offers a 1:400 leverage. So with that said, the trader will be able to trade for about $10,000 by risking only your personal money. The best thing about this is you will gain more than you invested but you will not be liable for more than you have. If you focus on the benefits of this account they are such as small capital, low risks, flexibility, and ease. If you focus on the negative factor it is that you would not gain more than the potential.  If you are a naïve trader you can prefer this account but not if you have the long-term interest.


The Standard Trading Account

This is the common account in the Forex market. The reason why this account has been named as ‘standard' is due to traders being able to trade the standard lot.  So the leverage in a standard account is 100:1 so you should invest $1000 if you want to trade using this account. So, what are the benefits you can gain from the standard account? They are such as potential earning, perks, higher recognition and much more. So, what are the disadvantages? Well, they are such as potential loss and large capital.


The Managed Trading Account

This is an account that is carried out by the professionals in Forex, not the traders. In order to open this account, you should have a certain goal and the ways to achieve it. There are advantages such as professional assistance and freedom. The con factors related to this account are such as higher price and less flexibility. So, before you make a decision make sure to analyze more the accounts. 

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When choosing a trading account type, consider the following factors:

1. Trading Style: Identify your trading style and determine if you are a scalper, day trader, swing trader, or long-term investor. Different account types may offer specific features or trading conditions suitable for your preferred trading style.

2. Risk Tolerance: Assess your risk tolerance and trading objectives. If you prefer lower risk and stability, a standard or fixed spread account may be suitable. If you are comfortable with higher risk and potential rewards, an ECN or raw spread account could be considered.

3. Trading Costs: Evaluate the trading costs associated with each account type, including spreads, commissions, and any additional fees. Consider how these costs align with your trading strategy and profitability goals.

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If still beginners they can choose micro account, this type account designed for newbie trader who want to learn trading with small budget trading and lower risk because only use cent balance, if deposit $10 hence in account balance will available amount 1000, in FXOpen micro account now can start with smallest position size 0.01 micro lot. However if already intermediate trader, choosing STP account will get better trading conditions, the spread is low, no requote problem.

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