What are the Advantages of a Forex Mini Account?

Many . With a mini account, you will enjoy many of the same benefits as with a regular forex account, but a lower initial investment. Here are some reasons why you should consider a mini account with Trading INTL:

• Free training platform, small spread
• Real Profits and Losses***
• Small Pip Spreads- 2 on the EUR/USD
• 100:1 Leverage*

Mini Account Contract sizes

In a mini account , the lot or contract sizes that are traded are 10,000 of the base currency, whereas for a regular forex account, the lot sizes are 100,000; in other words, the mini forex contract is 1/10th the size of the standard contracts.

How can you trade $10,000 worth of a currency with only $250 in a Mini Account?

The answer is because of "leverage*" Leverage* allows you to trade more of a given commodity (stocks, currency, futures, etc.) than you have money in your account to do. With a mini account, the margin deposit requirement per $10,000 lot traded is $50 . That means that the leverage* is 200 to 1 ( 10,000 divided by 50 is 200 ). Thus, with $250 you could trade a maximum of 5 mini lots, with $500 a maximum of 10, with $1000 a maximum of 20 , etc. This leverage* is 50 times greater than for stocks (day trading stocks provides a 4 to 1 intraday leverage* for traders that have $25,000 or more in an account by U.S. law). Using a high degree of leverage* is not always appropriate, and may increase potential gains as well as losses, but at least the superior leverage* found in mini forex accounts provides the trader with a greater degree of flexibility in the implementation and execution of different trading strategies.

Mini Forex Trading is great for Accounts under $10,000

Traders that want to trade with less than $10,000 are better off opening a mini forex account. This will not only give a trader more flexibility in the implementation of different strategies, it will also give him more staying power in the forex market since he could take advantage of multiple trades without over-leveraging his trading account. Please note that in some cases, client trading mini accounts could also over-leverage themselves. If you over-leverage your account you will not give yourself room for error. Even if you are correct on the direction of the market, minor fluctuations can generate a margin call and liquidate a good position.

**Disclaimer: Forex trading involves a substantial risk of loss.
***Increasing leverage may increase gains or losses on any given trade.