A Forex Micro Account is a trading account whose units are displayed in micro lots. A Micro Account allows you to trade with only 1,000 units as opposed to a Standard Account that requires at least 100,000 units to start trading. This will be beneficial for people who are new to the forex market. They will be able to open live accounts with smaller deposits, as low as $5, and experience the actual Forex trading.
Forex Micro accounts are usually used by beginners who want to trade on their own. This would enable them to learn Forex trading better and get used to the process of trading before going pro. The minimum required deposit in micro accounts, compared to that of the standard accounts, allows the new traders to adjust to the potential risks and losses of forex trading.
Choosing the right Forex Micro account is very important because it enables you to learn and practice Forex trading better. We have compiled a list of the best micro Forex brokers below to help you find the best Forex Micro accounts available.
Opening a Forex Micro Account will give you various benefits, especially if you are a beginner in the Forex trading business and want to learn to trade by yourself.
👉 Experience the actual capability of a Forex broker
Trading in the Forex market will require you to invest in a Forex broker as a medium. It takes time to choose the right Forex broker because you have to understand how they work and whether they can support you in your trades.
Some Forex brokers offer demo accounts to their clients before opening a live account. Keep in mind that each account type has its own pros and cons. This is why you need to open a live account to really know and understand how the broker works.
You can test your forex broker by opening a Forex Micro account and making a small deposit just to make sure you’ve chosen the right broker. You will be able to experience the real ability and competence of the broker in providing services such as order execution, trading platforms, deposit and withdrawal facilities, spread, and fees.
👉 Practice with real money and real thrill
Your trading experience can begin by using a demo account that most brokers provide. However, it is more realistic to trade in a live account where the real money is at stake.
A demo account is good for practicing, but a Micro account allows you to experience trading with real money. When you trade with real money everything becomes real (no fake leverages and definitely no hypothetical risks); this is where you naturally and emotionally react which will be very different from demo trading. You will experience the real thrill of gaining or losing money as your emotional reactions unfold.
When you’re trading Live, you get to assess your own trading strategies, management skills and the amount of risk you can take.
👉 Minimize risks with trading in smaller lot sizes
Forex market fluctuates very fast within seconds. Trading live using a Forex Micro account will give you the benefit of trading in smaller sizes, meaning you have lower risks and leverage. This will help you comfortably adjust your positions when you manage your money.
Since 1 lot in a Micro account is 1/100 of a Standard account, the cost of each pip in a Micro account is also 1/100 of a Standard account. It means that your losses in a Micro account are also smaller. Therefore, you can avoid bigger losses and continue to power through the market while adding to your trading knowledge.
👉 Get the gist of risk management
Risk management is a must if you want to survive in the Forex Market. Market fluctuations may result in a loss, and this can happen at any time.
Starting with a Forex Micro account means you start from a lower level. This will help you learn better how to manage risks in Forex trading without having to wager too much capital. You can then find out how far you can handle your risks to choose the best suitable method for your Forex trading style.
👉 Try various strategies simultaneously
Traders know that they can easily lose money in a live account; this makes new traders afraid to invest money. However, if you trade with a Micro account, you only need a small deposit, and in case of losses, you’ll recover easily. So, make the most of this opportunity by practicing as many strategies as you can.
With low capital and low risks, you can try and test various strategies in the real market until you find the best strategies that suit your trading style.
When you are done practicing with a Forex Micro account and believe that you are ready to join the next level of Forex trading, you can upgrade your account to a Standard or ECN account by depositing additional money. Nevertheless, you need to make sure that you are ready to handle bigger risks with a larger amount of money. This is something you can figure out simply by trading in a Micro account.