- You need to select the type of account for trading in forex markets that suits your investment, needs, and trading skills.
- A micro account for forex trading is the best option if you are starting with forex trading and do not know that much about it.
- You can get the maximum out of your micro account for forex trading if you select a trusted forex broker like hotforex.com.
Forex trading is one of the most popular ways to earn extra money and involves buying and selling world currencies. Even though forex trading involves risk because you need to invest a little to proceed with trading, you can end up earning significant profits and competing with large banks and hedge funds.
The three main accounts you can open for forex trading are micro, standard, and premium. If you're a beginner getting into forex trading for the first time, you need to set up a micro account instead of a mini or standard account to avoid risk. Today, we will tell you about the 5 easy ways to open a micro account for your forex trading.
What is a Micro Account for Forex Trading?
Before understanding what a micro account for forex trading is, we need to tell you about a forex trading account. A Forex trading account is the one you open for yourself on a trusted broker’s platform, and you can use that account to store the funds and use them for online trading.
You can manage your funds and transactions on your forex trading account, connect to multiple services, and participate in promotion programs. You also get access to beneficial trading training to teach you about successful trading techniques.
Now that we have discussed the forex account let's discuss a micro account for forex trading. You get three account options whenever you select a forex trading broker and open an account. Some brokers also offer four that include the demo or trial account, which involves fake cash investment to familiarize you with trading.
You can make a demo account, and if you understand the basics of forex trading, you can move forward with the micro account. Micro account is for small trade where you don’t have to invest a considerable amount, so even if you lose, that’s not very significant. Many new traders always start with micro accounts to avoid risks on forex trading.
5 Ways for Setting up a Micro Account for Forex Trading
Now that we have talked about forex trading and its account options, including micro account and the benefits and cons of using it, it's now time to tell you how you can set up your micro account for forex trading. You can follow the below-mentioned easy step-by-step guide trade successfully to your micro account for forex trading.
1. Choose a Reputable/ Trust-Worthy Forex Broker
Before anything, you'd need to choose a reputable forex broker because new might get into a mess and lose everything if you're broken isn't trustworthy. Some people choose the wrong forex brokers, invest through their platforms, and lose everything. If you're looking for a highly reputable forex broker, we suggest you try Hotforex.com as they are one of the best.
You can open your account on Hot forex with only an investment of only $5 and get multiple trading options, including MT5, MT4, web, and mobile trading. You also get flexible bonus offerings using a micro account through their platform.
2. Go to the Account Types on their website.
Once you select a reputable forex broker like Hotforex.com, you will visit their main website or download their app. After that, you will go to the accounts page, and you will get multiple account options including, micro, standard, and premium.
3. Select Micro Account
Out of all the account options, you will select the micro account to get familiarized with forex trading techniques, and once you get pro at it, you can move to standard and premium accounts. Suppose you are just starting with forex trading. In that case, we will recommend you only to select a micro account instead of choosing any other account option because forex trading can be very complex.
4. Click on ‘Open an Account’
After clicking on a micro account, you will be redirected to a page where you will see an option to open an account. You will have to click that option to create your micro account for forex trading.
5. Fill in the registration form.
The last step will be to fill in the registration form for a micro account for forex trading. You will have to give some of your personal information, and once your forex broker approves of it, you can start using your micro account forex trading.
We will conclude the article here, and we hope you will do the test drive first and then dive into the complex forex business. You can start with a micro account and understand your forex broker and learn trading techniques from your broker to get huge profits. However, before benefiting from your forex trading account, you need to learn how the investments work, and you can do that easily through a trusted forex broker like Hotforex.com.
What are the advantages of opening a micro account for forex trading?
The advantage of opening a micro account for forex trading is making the minimum investment and getting large profits from it. You get a lot of flexibility on a micro account because you can stick to one risk management plan, unlike a standard or premium account.
Why is there less risk involved in a micro account compared to standard or premium trading accounts?
A micro account allows you to test new trading strategies. You can play with the strategies without fearing the risks involved because you know that no loss on a micro account can ever blow through the account. You can learn and gain trading experience before moving to a standard or premium forex trading account.
Can you get high profits with a micro account?
Even though there's a low investment involved in forex trading micro account, the profit margin is also very low. Another disadvantage of using a micro account for forex trading is that you get very relaxed and stop learning because you know that it won't have a huge loss even if you have lousy trading skills.