Forex accounts allow you to trade currencies real time. They come in different contract sizes and offer different trading conditions, which you can adapt to your investment goals and trading strategies. Exact specifications for trading accounts vary according to brokers. What you need to keep in view is that however attractive features a particular trading account may offer, it is essential that it is provided by a reliable broker.
Reliable is a keyword in the forex business: Basically, we can distinguish between two main account types: If you are just starting to trade forex, a demo account is a good choice. It has the great advantage to simulate all the functions of a real trading account, and it allows you to conduct trading operations under real market conditions. The only exception is that a demo account is funded with virtual currency, so your gains and losses are also simulated.
With a demo account you can follow the real-time market changes and adapt your trading strategies accordingly, learn how to place orders to buy and sell , and see what the results would be if you did the same with a real trading account. Because demo accounts simulate results, order execution time may be relatively fast — even faster than having the same order executed on a real account.
In this sense, the results achieved may be over-optimistic. The same goes for trading psychology. Investing virtual funds, even if under real-time market conditions, does not equal with investing real money. Psychologically speaking, this affects your trading decisions, as well as your reaction to virtual gains and losses. To bridge the difference between how these two aspects manifest, once you gained the necessary skills and self-confidence, you may consider opening a real account and trade for real profit.
At XM you can do this with a small initial deposit of USD 5, which involves the least risk possible, and take your first steps into the real world of forex. USD , of any currency of your choice. With the reasonable use of your initial deposit and some leverage you can gain considerable profits on a MICRO account.
Larger forex accounts may include the mini and the standard account. Different brokers use different names for trading accounts, offering different trading conditions for each.
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Forex Account Types Basically, we can distinguish between two main account types: Real Trading Accounts To bridge the difference between how these two aspects manifest, once you gained the necessary skills and self-confidence, you may consider opening a real account and trade for real profit.More...