Mini account allows traders to make transactions using mini lots which is equal to USD10,000 (0.1 lot), or one-tenth of a Standard account.

Brokers usually offer real accounts for a trader on various levels. There are micro-level (Micro Account), mini level (Mini Account), and standard level (Standard Account). These types of accounts allow the trader to choose according to their trading criteria and abilities.

Now, we will discuss one of them, it is a mini account. If you are a beginner, this type of account will suit your needs. Why? Check out these reasons!

Mini Account

 

What is a Mini Forex Account?

Mini account allows traders to make transactions using mini lots which is equal to USD10,000 (0.1 lot), or one-tenth of a Standard account. Usually, brokers provide a mini account as an option to get new customers who are hesitant to trade with standard lots due to the amount of capital needed.

A mini account used leverage as borrowed funds in to help traders with small capital. For instance, if it's calculated using 100: 1 leverage ratio, trading on a mini account only requires a USD100 margin for each lot to be traded.

Mini forex accounts can also help traders reduce their risk in other ways. For instance, trading in mini lots can permit greater levels of diversification, because the same amount of capital can be invested across a greater number of lots.

 

How Mini Forex Accounts Work

As we mentioned above mini account use lots one-tenth the size of a standard lot: 10,000 units. Because currencies trade-in "pips," which each represent 1% of a single basis point, a currency movement equal to a single pip would result in a $10 charge for a standard lot.

However, that same one-pip move would result in only a $1 change if the trader used a mini lot position. Mini forex accounts allow traders to make use of these smaller, less leveraged lots. For this reason, the mini account is suitable for beginners, or those who are not ready to bear the risk of loss on a Standard account.

 

How To Get Mini Forex Accounts

Usually, there are several types of accounts trading provided by brokers, it can be standard, mini micro, etc, and each of them has its pros and cons. One of the most favorite types of accounts by a beginner is mini account trading. Because this type of account help beginners to trade with standard lots using leverage and reduce the risk of losing money quickly.

Choosing the right type of forex trading account usually depends on your ability to tolerate risk and how much capital will be included as an initial investment. If you are a beginner on trading forex, you need to do research and learn about the types of accounts, and estimate how much money will you invested.

The safest way to test your knowledge in advance is with a demo account. There are many forex brokers providing a demo account and it does not use real money. Trade wisely, professionally, and don't be greedy.