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Different Types of Forex Accounts
Forex trading has become very popular these days. More and more people are taking up forex trading with the hope to make it big. Many have made it and some are on the way. If you want to take up this lucrative trading but have no experience, you have to learn about the principles of forex trading and practice for a few days as this is a high risk market and there is always the possibility of losing money.
For that reason it is indispensable for the new trader to be aware of all the different types of accounts offered by the brokers, as using the proper account can be the line that separates the earning traders from the bankrupt ones.
The Demo account
The demo account is meant for the absolute new and inexperienced persons who want to start and trade forex. In such cases the demo account is ideal for you. As a new trader, you have the least idea about all the currencies trading features and the risks involved in it.
Therefore, a demo account is just the thing you need in order to avoid losing money at the same time as getting some familiarity and experience. You should trade patiently in the demo account and wait until you make some profit as it will boost up your confidence and trading strategy. You should go for a live trading only after gaining thorough knowledge through practice and experiments and trials in the demo account.
The Micro, Mini or Standard Account
These accounts have the same features as the demo account but are distinguished in one very important thing and that is the minimum first deposit. The initial deposit can vary from $1,00 to just $10, depending upon the broker you’re dealing with. The intention behind the different accounts is pretty much the same as the purpose behind the demo account; as it can eliminate your risk to minimum.
You can trade with real money in the mini or micro account, and apply all of the normal strategies you have gained and double your money (or lose everything), but use of the mini account will limit your loss to a negligible amount. These accounts are for polishing your trading skills and you should put in money as per your financial capability.
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What Makes a Good Forex Broker and Fixed Time Trade
There are a number of distinct features that should be taken into consideration when selecting a Forex broker and fixed time trade. Many first-time traders allow themselves to become stressed over the broker assessment process, when the fact of the matter is that the assessment of a small number of key features is all that is required. There are a multitude of brokers offering platforms now and the brisk competition ensures that traders are provided with a great deal of incentives and bonuses.
Although customer service is often an afterthought, it ought to be one of the primary areas of focus when screening a broker. If help and assistance are not available when needed, many problems can arise. The broker should provide a number of contact methods, such as phone, email, and live chat. Some brokers now provide specialized account representatives, with each providing service to specific traders. The best way to gauge customer service is to put it to the test. Use each contact method to discover what type of service is provided.
The trading platform most definitely needs to be assessed. The platform should be well-designed, simple to operate, and packed with a wide variety of instruments. Some brokers supply single-pane trade windows, some offer multiple window views, and some supply both. You’ll want to check out the types of instruments, assets, and expiry times that are provided, as these can make a huge difference in overall earnings amounts. Every forex and fixed time trade includes these elements and traders need plenty of variety so as to make the most of every profit opportunity.
Don’t make the error of overlooking the banking area. This is the area in which account deposits can be made and withdrawal requests can be submitted. Determine whether or not the broker will work with your desired banking method. Most brokers now accept major credit cards and bank wire transfers, but some also accept e-payments. Additionally, you will want to know if there are any withdrawal fees in place. Some offer free withdrawals, while others charge a fee to help to recoup the expenses associated with issuing funds.
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The minimum deposit requirement is yet another considerations. These tend to be low, so as to attract a larger number of participants. There are a couple of things to think about when making a decision about the initial deposit. One is going to be the bonus amount that correlates with the first deposit. Larger deposits often mean larger bonuses. Another is the account type that goes along with the deposited amount. When tiered account types are offered, a larger number of perks go hand-in-hand with the higher tiers.
All Traders are Encouraged to Evaluate The Following Factors:
- Trade Parameters: There should be a large number of assets to choose from, along with plenty of different expiry times to choose from. There should be at least two different instruments to choose from, although many forex and brokers offer more than this.
- Platform Languages: This will more important than some than others. All platforms are provided in English, but the additional language options can vary greatly. Check to see if the website and platform are provided in your preferred language.
- Minimum Deposit: What is the cost to start trading? Brokers do not charge per-trade fees, so all deposited funds can be used to trade with. The average minimum deposit is between $10 and $300. Any amount that exceeds this is considered to be above average.
- Banking Options: Is your preferred banking method offered? This question should be answered at the beginning of the evaluation process, because if it is not, you’ll need to look elsewhere for a broker.
- Bonuses and Promotions: Bonus amounts of up to 100% are offered by some brokers. These will come with conditions which must be met before the money becomes yours to withdraw. Even so, bonuses and other promotions can provide a nice boost to account funds.
- Client Support: A dedicated account manager may or may not be provided, but all traders should have access to general support. Considerations in this area include the available contact methods and the hours during which support is provided.
The available broker choices will include both young and well-established companies. Many are regulated, while some cannot be due to their location. Those which are not accept U.S. traders, while those which are cannot. It is a proven fact that those who work with a great broker tend to earn more and experience the fewest number of problems. While you may be excited to get started, there are many benefits to taking the time to select the best forex and fixed time trade broker.