Forex Trading Mini Account

When I first started trading forex, I was introduced to not just profit methods, but also accounts that controlled what lot sizes you could use and the level of risk you could handle.

Most brokers give you 3 types of accounts:

1. Standard account
2. Mini account
3. Micro account

You need at least $1000 or more to open a standard account while a mini forex account can be opened for as little as $25. Micro accounts are another variety that let you trade 10 cents a pip, but from my own experience, a mini account is a practical 'step up' at $1 a pip.

Forex trading with a mini account solves a lot of the problems beginners have with handling currencies:

* You can paper trade a strategy only so much before you need to break out. There is a vast difference between trading currencies in a demo account and actually making the move to real world trading. The difference is part psychological and partially to do with the fear of losing it all in speculative trades.

* Remember that your real test of forex skills begins when you take the plunge and put actual money into a real account (be it mini, micro or standard). The satisfaction that comes from watching your money grow with pips, is a huge confidence booster to any trader.

* With a forex trading mini account, you risk less in terms of real Dollars but gain valuable insights into managing those Dollars well. It lets you develop your own trading strategy and be comfortable with the mindset of a successful trader.