What Are The Different Types Of Account In Forex Trading Online?
The foreign exchange market is very vast and expanded. Not just hundreds but even thousands of traders do forex trading online in the foreign exchange market daily.
Since there is a whole community of traders in the foreign exchange market, these traders use certain specific terms to describe specific things in the market. Traders often use these terms to make their communication easier while forex trading online. One such term is a forex account.
What is a forex account?
A forex account is very important if one wants to do any kind of forex trading online in the foreign exchange market. Without a forex account, a trader cannot perform any type of buying, selling, or exchanging of currencies in the market.
If a trader wants to start trading different types of currencies in the forex market, they first have to create a forex account on any of the forex broker websites like T4Trade. Only after creating a forex account on a forex broker website, the trade can start trading different types of currencies.
The unique thing about forex accounts is that there is not just one type of forex account. Instead, there are a total of three types of forex accounts. These distinctions are made based on the lot size or the trade limit of forex accounts. Traders can choose from the three types of forex accounts according to their needs or trade limit.
The first type is called a micro forex account. This type of forex account has a lot size of one thousand dollars. Thus, a trader with a micro forex account can trade currencies worth one thousand dollars at one time.
The second type is called a mini forex account. The lot size of a mini forex account is ten thousand dollars. The third type is a standard forex account. A standard forex account has a lot size of a hundred thousand dollars. Thus, these are the types of accounts used for forex trading online.