What and Why of a Forex Micro Account
Standard Forex accounts usually require at least $1000 to begin a trade. A Forex micro account, on the other hand, is one that does not need whopping wads of cash to be activated, as what can be deduced from the name it alone. If you happen to have only $25 in your pockets, that will surely suffice for a micro account.
Now if you think that a micro account is pointless simply because there is the standard version, think again. Forex micro accounts serve a lot of important purposes that can even determine the future of your Forex trading career. For one, such accounts are frequently launched by professional traders to test new strategies, and gauge how profitable a trade is. This is extremely crucial if large amounts of money will be involved later on.
More importantly, micro/mini accounts are there to help those traders who are new and are still not aware of how things go in the trading field. Since these small time accounts provide round-the-clock access to the same resources that standard ones give, they are often used to learn how to read and understand Forex charts.
Also, practicing money management with them is a more productive than with demo accounts since you get to hold real money, which is the motivation, needed to cultivate your financing skills. Lastly, novices have to learn proper trading strategy, and it is best done with Forex micro accounts. Regular accounts come with bigger investments and such makes the idea of testing strategies risky when they are involved.
