These days, Forex industry offers a huge variety of services. Even beginning traders with small trading capital have an opportunity to trade Forex on micro-accounts (starting from $1). Probably, some of you have some questions like:
What are micro-accounts? Why are they so popular among beginners? Why are beginners recommended to choose micro-accounts (usually $1 to $50) when deciding to switch to real-money trading? Which micro-brokers are the most popular and reliable? Let’s try to answer them.
Micro Brokers: Benefits
Micro brokers are the brokers that allow micro-lot trading. According to Eugene Olkhovsky, Masterforex-V Academy ’s leading expert in financial markets from Canada, on the face of it, micro-trading looks like an unpromising and unprofitable market niche. Obviously, any broker would rather have one big-scale client with substantial funds to trade (say, $50-100K) rather than dealing with hundreds of micro traders with tiny trading capital (say, $10-100).
But in reality, micro-trading is promising for those fair and reliable brokers who are interested in long-term cooperation with successful traders because some of those beginners may eventually grow into professional traders managing 10-100K accounts and allowing the broker to generate stable profits on spreads and commissions.
That is the reason why major Forex brokers (like Forex club, Alpari, FxOpen, BMFN, FIBO Group, FXDD) occupy the micro-trading niche. They understand that micro-accounts are beginner’s first steps in the Forex trading environment. Later they might turn into big-scale traders operating substantial funds.
On the other hand, micro-accounts are the best option for beginning traders, Eugene Olkhovsky says. Micro-accounts are the most suitable accounts when it comes to testing your trading system or overcoming greed, nervousness and excitement. These are the traits beginning traders must get rid of to become professionals. Another reason to trade micro-accounts is to find out whether a particular broker is reliable and suitable for you in terms of trading conditions. If this is a scam broker trying to make you lose your micro-deposit, then obviously it isn’t worth trusting.
Micro Brokers: Leaders and Outsider. October 2013
Masterforex-V Academy’s rating of Forex micro-brokers (those brokers that allow traders to open micro-accounts up to $50 and to trade 0.01 lot) counts 23 brokers. All in all, thousands of traders have participated in the open voting. This resulted in the following rating in October 2013:
Nord FX, RoboForex and Larson and Holtz occupy the first 3 standings in the rating. They seem to be the most popular brokers among micro-traders.
The mediocre group includes:
- ForexTrend;
- Grand Capital Ltd.
- Forex4you,
- FXOpen,
- TradeFort.
The outsider list includes:
- Forex-Market;
- Instaforex;
- Lionstone Investment;
- IamFX.
Micro brokers are ideal for those who want to start trading with minimal risks. In particular, they are suitable for beginning traders and those intermediate and advanced traders who decided to test a new trading strategy in real trading environment without risking a lot of money!
The bottom line:
Not all the micro-brokers are the same. Even though Nord FX and Alpari seem to be dominating the micro-broking niche, everything can change. Every single vote matters, yours as well!
