1. Demo Account
When it comes to Forex account types, aDemo accountis the one that you will come across at most of the brokers. If you are new to Forex trading and want to explore the nooks and corners of the Forex market without actually spending your money, a Demo account is what you need.
Trading on a demo account mirrors real-world forex trading. Demo accounts users can explore real-world trading functions, like analyzing price movements, testing outrisk managementstrategies, understanding spreads, leverage tools, and utilizing stop-loss and take-profit orders.
Many people on the Forex market have this misconception that demo accounts are best suited for beginners only. While the truth is, demo accounts can be very beneficial even to those who have extensive experience in Forex trading. One of the best aspects of demo accounts is that they are an ideal tool for exploring and experimenting with new forex brokers and platforms.
2. Standard Account
As the name suggests, theStandard accountis the primary trading account offered by most Forex brokers. The name may vary from broker to broker; it may be called a Classic account or carry the brokers primary account name. The main advantage of using a standard account is that brokerage firms typically offer their best features and benefits to standard account holders. For Standard accounts, 1 Standard Lot = 100,000 currency units.
Another beneficial thing about choosing the standard account is that you are free to trade a variety of trading instruments like currency pairs, commodities, high leverage, low spreads, high affiliate rebates, seasonal bonus programs, and the ability to trade in more volumes simultaneously. Using a standard account can also result in greater profits if you manage your trades well.
Despite the fact that using a standard account can be more profitable, it is also likely to be riskier. You need a relatively high knowledge of forex instruments and trading knowledge in order to open a standard account. Thus, this type of account is more suited to skilled and capital-rich traders.
3. CENT Account
A ForexCENT accountis a trading account with a balance measured in cents instead of USD. That is, 1 USD = 100 cents. CENT accounts are ideal for Forex beginners since they allow trading with real money without risking too much.
Beginner traders can use CENT accounts to make the transition from a demo to a real trading account. If the minimum lot size required is 0.01lot, it is equivalent to 1000 cents (10 USD). Therefore, it is possible for anyone to enter the forex market and begin trading with very small capital.
CENT accounts are best for testing and developing forex trading strategies. With the low-risk advantage, you can experiment with different trading strategies while simultaneously sharpening your skills and gaining experience. However, a smaller capital will only yield smaller gains. If you want to gain huge profits, its not the best idea to open a CENT account.
4. ECN Account
ECN stands for Electronic Communication Network; it is a system for trading Forex without agents. ECN accounts are one of the most popular account types because of their transparency and direct market access. Forex brokers offer anECN accountalong with traditional accounts and charge a commission per lot, with lower leverage and a smaller minimum deposit.
ECN accounts are a perfect choice for professional traders seeking optimal trading conditions. With ECN accounts, trade execution can be faster than with other account types since all trades are executed immediately without requotes. Since ECN accounts instantly match orders from traders with the best buy and sell prices, they offer lower spreads.
Benefits of choosing aximtrade Forex Account
aximtrade offers a variety of options when it comes to forex accounts. Traders can choose the best account type based on their trading strategy, experience, and investment capital. It is possible to open up to 7 Standard Accounts, 2 Cent Accounts, 5 ECN Accounts and 1 Infinite Account per Active Member Area.
Leave a Reply