Forex traders provides all transactions with buying and selling currency pairs using online means, cooperation with Forex brokers and each of them also applies a Forex trading account. Initially a demo account operating with virtual money to prepare for real time transaction in the Forex market is used and then appealing to different types of FX trading accounts when one is ready for risk taking while dealing with losing or earning real money.
This time we are not going to discuss Forex trading strategies. Today we will discuss some pros and cons of the most common type of Forex trading account plenty of traders choose all over the world:
A standard Forex trading account
It is the most common and widely used trading account applied by Forex traders. It named so because it allows the owners to gain an access to standard lots of any currency. Each of which is worth about 100 thousand USD. Many beginners think that they need to invest real 100 thousand dollars to start live trading. Those common rules of leverage and margin denote that you need to put only one thousand bucks to get one standard lot necessary for Forex trading. Take opinion of any FX expert and he/she will prove this fact because most of the traders work for years by leveraging this type of Forex trading account. However, only experienced and full-time traders can expect to understand all nuances while using such account for FX trading.
Advantages of Standard Forex trading account
1. Servicing: Due to the fact that standard account requires an investment of the adequate initial capital from FX traders to get an access to full lots plenty of Forex brokers have to provide outstanding services and conduct improvements to draw attention of rich and private investors. One can expect best services using the standard FX trading account.
2. Gaining potential: Each pip here is worth about ten dollars or higher and if position moves according to your strategy and natural Forex fluctuations by one hundres pips during one day your profit can increase up to one thousand dollars. No other type of Forex trading account treasures such potential when a possible gain is concerned.
Cons of standard Forex trading account:
1. Capital requirement: As mentioned above the most important issue is to find an initial sum of money should be no len than one thousand USD while many brokers start their rates for a standard Forex account two thousand USD or even more. So prepare to invest such amount of money and also be prepared to lose them as well.
2. Losses potential is high: A trader may win a lot or may lose it all. Only experienced traders can play it well and expect to use a standard account and risk one thousand of real dollars expecting and forecasting that 100 pips won’t move against them during one trading day.
This time we are not going to discuss Forex trading strategies. Today we will discuss some pros and cons of the most common type of Forex trading account plenty of traders choose all over the world:
A standard Forex trading account
It is the most common and widely used trading account applied by Forex traders. It named so because it allows the owners to gain an access to standard lots of any currency. Each of which is worth about 100 thousand USD. Many beginners think that they need to invest real 100 thousand dollars to start live trading. Those common rules of leverage and margin denote that you need to put only one thousand bucks to get one standard lot necessary for Forex trading. Take opinion of any FX expert and he/she will prove this fact because most of the traders work for years by leveraging this type of Forex trading account. However, only experienced and full-time traders can expect to understand all nuances while using such account for FX trading.
Advantages of Standard Forex trading account
1. Servicing: Due to the fact that standard account requires an investment of the adequate initial capital from FX traders to get an access to full lots plenty of Forex brokers have to provide outstanding services and conduct improvements to draw attention of rich and private investors. One can expect best services using the standard FX trading account.
2. Gaining potential: Each pip here is worth about ten dollars or higher and if position moves according to your strategy and natural Forex fluctuations by one hundres pips during one day your profit can increase up to one thousand dollars. No other type of Forex trading account treasures such potential when a possible gain is concerned.
Cons of standard Forex trading account:
1. Capital requirement: As mentioned above the most important issue is to find an initial sum of money should be no len than one thousand USD while many brokers start their rates for a standard Forex account two thousand USD or even more. So prepare to invest such amount of money and also be prepared to lose them as well.
2. Losses potential is high: A trader may win a lot or may lose it all. Only experienced traders can play it well and expect to use a standard account and risk one thousand of real dollars expecting and forecasting that 100 pips won’t move against them during one trading day.