Previously, when speculative Forex trading was just gaining momentum, players needed a deposit of thousands of dollars. There were no fractional lots, and the leverage was limited to 1:100.
And in order to comply with the rules of risk management, it was necessary to have an even more solid amount at the disposal. It is clear that such a framework limited access to the foreign exchange market for many traders.
To date, thanks to the active development of brokerage companies, the situation is radically opposite. There are many brokers offering accounts of the cent type. Therefore, you can enter the market even with $10 by opening this account type.
But what benefits does this approach bring?
Learn how to manage capital
In other words, you’ll learn how to assess the risks in trading. Experts recommend that in one transaction one shouldn’t risk more than 1-2% of the deposit. Why? Because in case of losses, it will be very difficult to recover even the start-up capital.
In most cases, the minimum trade volume on a standard account is 0.01 lots, and 0.1 lots on a cent account. If you translate this into, for example, US dollars, you get $1000 and $100, respectively. And if you apply leverage, you will need an even smaller deposit.
Mentally prepare for trading big
By dealing with Forex brokers with cent accounts a rookie trader can do the following:
feel real losses and profits;
tune in to trading;
understand the psychology of this activity;
learn how to cut losses;
experience first troubles and victories.
And see how fast the deposit grows using one or another strategy.
What brokers are there?
Currently, the brokerage market is full of decent candidacies, but we managed to gather the 5 best ones:
All of them have their own pros and cons, therefore you should do your own research to find out which one fits your demands best.
Dealing with Forex brokers with cent accounts is a real salvation for Forex novices. Nothing saves from big losses like trading in cents.
Let’s explain this with a specific example. You have opened a 0.1 lot buy trade. The rate at the start was 1.0499, and 1.0513 when you closed the deal.
It turns out that the pair has risen in price by 14 points. In this case, the profit on a cent account will be 14 cents, that is, 0.14 USD and $14 with a standard account.
Indeed, small sums really help beginners feel the market, get acquainted with the functionality, and at the same time get some profit.