Needless to say that the contemporary Forex industry is capable of offering us a huge variety of financial services. Even beginners with tiny trading capital now have a decent chance to trade the Forex market on micro (or cent) accounts, where deposits usually start from $1. I guess some of you may have some questions spinning in your heads:
What are micro accounts? Why do rookies choose them worldwide ? Why are beginners strongly recommended to choose those cent accounts (low deposit requirements - $1 to $50) when starting trading for real money? Which of those cent brokers are the most popular and reputable? Let’s try to find this out together with Masterforex-V Academy, Europe's best Forex coaching website since 2009...
Cent Brokers: Pecularities and Advantages
Micro (or cent) brokers are the kind of businesses making it possible to start trading small, investing a couple of bucks. The equity is usually denominated in cents rather than dollars. If you deposit 10 dollars your starting equity will be equal to 10 000 cents.
According to Eugene Olkhovsky (Canada), Masterforex-V Academy’s leading expert in financial markets, micro trading may look like an unpromising and unprofitable market niche to an average person at first. Without any doubt, any broker would rather have one big-scale client with substantial capital to invest and/or trade (say, $50-100K) rather than working with thousands of micro traders with tiny equity (say, $10-100).
Still, if we go deeper into the essence, micro trading can eventually be a promising niche for those patient, client-oriented and reputable Forex businesses since some of those beginning traders may eventually grow into a tycoon, a trading heavyweight with a lot of expertize and operating 10-100K accounts while making it possible for the Forex broker to generate consistent and stellar profits deriving from spreads and commissions.
Well, that seems to be the key reason why even major Forex brokers like Forex club, Alpari, FIBO Group, FBS and NordFX still do not mind occupying the micro-trading niche of this high-profitable business. They are truly capable of grasping the essence of the business and understanding that cent accounts are the rookie's first steps in the rough environment of the Forex market. Later on, if they strive hard and move in the right direction, they might eventually turn into trading experts operating substantial funds.
At the same time, all those cent accounts may well become an excellent choice for all rookies testing their skills as well as their strategies without major risks, Eugene Olkhovsky says. Micro accounts are the most suitable type of live accounts when it comes to testing strategies or overcoming fear, greed, excitement and other psychological deterrents. Undoubtedly, these are the very traits rookies must get rid of at all time in order to become professionals. There is one more reason to trade micro-accounts. It is revolves around checking whether a particular Forex broker is truly reputable suitable for you in terms of trading conditions and all other aspects. If this is a scam trying to play dirty tricks on you even on cent accounts, then it's obviously not worth trusting.
Cent Brokers: Switching to Live Trading Painlessly
Despite the fact that the so-called cent brokers allow their traders to open micro / cent accounts in order to deposit $5, $10… $50, the niche can actually be profitable as well since the real amount of beginning traders is substantially bigger than those trading Forex as professionals. It is micro brokers who actually help all those rookies in gradually switching from demo trading to real-money (or live) trading with less pain and without running major risks. Moreover, they give their clients a decent opportunity to test new and existing strategies in genuine market conditions.
Micro brokers are focused on betting on young but promising beginners, rough diamonds, who may well become successful professionals later in order to start managing decent amounts of money to generate stable decent profits for themselves and the brokers.
On top of that, rookies see it as a decent opportunity to check and test the quality of the company’s services without having to risk big bucks.
Masterforex-V Expo's Rating Of Forex Micro Brokers. November 2014
The following table shows the monthly rating of the industry’s best micro Forex brokers, courtesy of Masterforex-V Academy’s project called Masterforex-V Expo:
As you can see, NordFX, Fibo Group, FBSm Forex Club and Alpari from the TOP5 of the rating. These are some of the best companies in the brokerage business. These are companies enjoying reputation and high status among traders and investors worldwide. They offer their client competitive trading conditions. But still, they are trying to cater to the needs of every single client, whether it is a complete rookie making his (her) first steps in the trading environment or a true professional. This feature really deserves respect since it shows that such brokers are truly client-oriented businesses betting on today’s rookies, who may later turn into real trading giants brining the company stellar profits on a regular basis. Maybe you are one of them...
