Disadvantages of Forex mini account
A new forex trader may be tempted to use a mini account with their automated forex software. These are real live accounts that use lot sizes one-tenth the size of standard accounts. They can be found at any broker these days.
A new merchant has a number of options:
1. From the beginning, use a standard account and trade live using between $1000 and $5000. Obviously, this is not the best for the learner.
2. Start live trading in a mini forex account. You usually need $250 for these accounts, but you may be able to find brokers that will let you start with even less.
3. Start with a demo account where you gain trading skills without investing any real money, then when you consistently make profits, switch to a mini or full-sized brokerage account depending on your capital reserves and your strategy.
Disadvantages of mini trading account and online forex software.
Since you are trading smaller lots, you will pay more commissions to the broker. Your profits will be eaten into more. This can affect whether you make a profit or a loss in the long run. So it is advisable to run a mini account only until you have enough capital to switch to a standard account.
Whatever your choice, just remember that forex trading carries risks, like all investments that promise big profits in a short time. Only risk money you can afford to lose.
Also, you need to choose the best forex software. This is important if you want to become a trader. A good forex robot will mean you are in the know all the time. You won’t have to be in front of your computer day after day. The robot will take care of technical analysis for you and entry and exit of trades. If you don’t, the task will be too difficult. All other traders use software, so if you choose not to use it, you are at a real disadvantage.
#Disadvantages #Forex #mini #account