Forex cent account: what is it for, what is the advantage?
Coming to work in the Forex market, most of the traders first select various Forex accounts for training, which makes it possible to understand all the details of work, learn how to build a successful trade, get all the necessary skills and experience, without losing real money.
Many traders choose demo accounts on which trading is carried out similarly to working with ordinary ones, but involves the use of virtual money. This option can help you learn a lot, but the trader is unlikely to learn how to cope with emotions. After all, trading is carried out using virtual money, which the trader is not afraid to lose.
And it turns out that then, having come to the real market, the trader loses all his money for the very first transactions because of the inability to stop on time, make the right decision, strictly follow the plan, because of the fear of losses and the desire to get as much profit as possible. In order to try your hand at trading and learn how to cope with feelings, it is best to study the fundamentals of Forex in real conditions and choose a cent account for this.
That is, it is a regular account, but using not cents, but cents, as a unit of measure for cash. To buy a minimum lot, a trader needs 100 times less funds than on a classic account. By creating a deposit of $ 50, a trader can enter into transactions in the amount of up to 5.000 cents.
The main advantage of a cent account is the ability to actually trade with a minimum amount and lack of skills, without fear of losing serious money. On the one hand, the Forex cent account assumes minimal losses and profits, on the other hand, it gives Forex beginners the opportunity to trade realistically, feel responsible for the money, learn how to make the right decisions, make deals on time, and get such an important experience for future serious work.
To start working, a forex cent broker must be selected as a trader. Not every broker provides the opportunity to open a cent account, but serious companies try to give their clients the opportunity to work on different accounts. Cent accounts can be of different types, differ in the type of execution of transactions, the level of spread, the size of commissions, etc. Details of the conditions must be read, choosing a specific broker and account.
Other tools will work as usual, there are no special subtleties. The minimum lot size on a cent account is 0.001. This volume can be bought for 1 US dollar (if the work uses the EUR / USD currency pair).
Trading on a cent account is more training - to earn really big money is almost impossible here. Therefore, as soon as the trader began to notice that profit is constantly growing and in the aggregate amounts to a much larger amount than the amount of loss, that the trader has already figured out the basic subtleties and feels that he is able to work with large amounts, it is worth opening an ordinary account and starting to work.