The micro-account concept was developed in 2006. LiteForex broker was the first to offer a cent account to clients.
The micro account Forex is designed for single traders who want to make money in the foreign exchange market but do not have enough capital to open a standard Forex account.
Micro-accounts are also opened by professional traders who have the means and desire to try out an innovation (strategy, indicator, conduct Forex analytics) and not risk large sums.
Find out more about this type of account/trading below!
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Micro vs regular account
A micro account holder can trade most currency pairs in the same way as standard account holders, but the share of participation of such players is much less.
When working on a micro account, the minimum lot size is 1000 units of the base currency. For comparison, one lot on a standard Forex account is equal to 100,000 currency units.
The micro Forex account balance will inevitably be displayed in cents. The financial instruments available for trading and the spreads are the same for both account types.
Also, auto-trading, which allows you to trade 5 days a week, excluding Forex work on holidays, is not available on a micro account.
How to deposit into a micro-account on Forex?
Most micro accounts do not have minimum deposits. The exact minimum amount that needs to be deposited into a Forex micro-account is set by the broker. Some brokers have a minimum capital requirement to open a micro account as low as $5 or $10.
How to open a Forex micro account?
The algorithm is fairly simple. First, you need to find a broker that offers a micro account format. You register in the same way as you would for any other type of account by providing personal details such as:
- name;
- email address;
- residential address;
- phone number;
- date of birth.
Note that opening an account is free.
Is it worth it?
The Forex micro account is intended for beginners, but it can also be useful for experienced traders. In a trading strategy that involves the simultaneous creation of dozens of market positions, micro-lots allow you to correctly determine the size of the position and scale it.
If you want to test a new broker in the foreign exchange market and learn how to withdraw money from Forex, a micro account is a way to go. It allows you to check the execution of transactions, account support, deposit and withdrawal speeds, and not risk your capital.
There are many brokers who offer the possibility to open a micro account. These brokers differ in trading spreads, overnight rates, and maximum leverage rules.
On top of this, many platforms allow you to set up a micro account in a demo format before switching to a live version.
