Forex Mini AccountForex Mini Accounts (or mini forex account) are usually for beginning traders looking for a way to get their feet wet in the FOREX market. To actually trade on the full scale forex Market you need to purchase in 100,000 lot sizes which means you need a LOT of money or Margin to even thing about trading, which makes a standard trading account a 1:1 ratio account.. Obviously that's not going to happen for the majority of people out there. That's why most trading platforms you see online are actually Mini Forex Accounts. So if you can deposit say $250 and not have a margin, it's a mini forex account. So, how do these mini forex accounts work?
On top of that FOREX mini gives you leverage by allowing you to use up to 400:1 trading ratio. That means $50 can actually buy you a lot of 20,000 (20,000 / 50 = 400) While this sounds great you need to realize your cost to trade is increased as your leverage is. Since the cost on a forex market is in PIP's and usually the spread is 2-4 pips, when you use your 400:1 leverage you also triple your purchase cost, which can get expensive if you day trade or lose often. Click Here To Open a Mini Forex Account
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