Most beginning traders face the same dilemma: How much money to allocate for the initial trading capital? Big capital means big profits (provided that trading is profitable) or big losses (if it’s not).
On the other hand, a beginner can reduce his/her trading capital to $100 or less. In this case, trading won’t make him/her a breadwinner and will save him/her a lot of money if the trader turns out to be a loser.
ECN or Cent Accounts?
According to Andrei Goilov, a representative of Roboforex, beginning traders are not recommended to start trading big lots through ECN off the bat. Even if you have enough money to open an ECN account, you still can lack experience and skill. Moreover, it is psychologically difficult to manage substantial amounts of money without any experience. In order to make money in financial marekts, including Forex, it is necessary to stay calm and make sound decisions based on a profitable trading system Moreover, it is necessary to trade without emotions.
Therefore, micro and mini (cent) accounts are optimal solutions for beginning traders. They allow traders to master technical aspects of trading without being subject to major financial risks.
Both cent accounts and ECN accounts with access to the liquidity provided by Integral and Currenex can meet even sophisitcated traders’ requirements.
However, being a trully client-oriented company, Roboforex went as far as expanding the rage of trading accounts. In particular the broking company introduced an expculsive type of tradig accounts - Pro-Cent (cent acounts with trading conditions for professionals).
Pro-Cent alows beginning traders to enjoy the same favorable trading conditions without having to invest substantial amounts of money in Forex trading.
Therefore, traders get an opprtunity to learn how to trade Forex professionally in a genuine trading environment. With Pro-Cent, introduced by Roboforex, anyone can get trading conditions similar to genuine interbank liquidity, which is available only to profesional traders who manage decent amounts of money. Therefore, this is a trully exclsive offer.
Despite the fact that in this case Roboforex acts as a couteragent, the execution of orders is performed the same way its it is done by prime-brokers through the “Bridge” system in the “Market Execution” mode.
This means that being a beginning (minor) trader, you still have an opprtunity to “feel” genunine market conditions.
ECN: Why It Is Not For Beginners?
Speaking about ECN accounts, it is necessary to keep in mind that ECN (Electronic Communication Network) allows traders to get direct access to the interbank liquidity without mediators. Roboforex offers 2 types of ECN accounts: ECN-Fix NDD and ECN-Pro NDD. They can be distinguished for several benefits:
· Instant execution of orders (0.1 second)
· Access to the world’s leading liquidity providers
· Low spreads
· No requoting and slippage
· No Limit & Stop Levels
· Scaping allowed
· Automated trading allowed
ECN trading is secure as no third party has access to transactions. Traders interact directly with each other within a genuine interbank environment. Moreover, you can trade even during major news releases (some brokers do not allow that). These options are beneficial for scalpers as they can trade volatile markets withot any limitations.
However, beginners are still not recommeded to trade on ECN accounts till they become professional traders. There are several reasons for that.
The major reason is that fact that commissions are not as convenient for beginning traders as spreads. Moreover, it is necessary to trade really big so that your profis could cover commsiions. ECN is not designed to trade small or tiny lots.
However, you can always make use of Pro-Cent accounts if you are still making first steps in the Forex environment. You can train, master your trading skills, test your trading systems (which may prove very profitable later) without riskying decent amounts of money.
If you trade for money you cannot afford to lose, trading becomes extremely stressful. Moreover, you cannot make sound , logical trading decisions under stress. It is wise to start trading small and to increase the trading capital as you get more confident.
Therefore ,we can conclude that cent accounts are optimal solutions for beginners while ECN accounts are for professionals.
If you need more information on micro and ECN accounts offered by various brokers, you can visit Masterofrex-V Academy’s rating of Forex brokers , which is one of the very few unbiased ratings based on transparent and objective criteria.
