There are different types of accounts opened for Forex trading. Mini Account is one of the types of accounts that you can open for Forex Trading. It is a type of forex trading account that deals with a mini lot of units.
It is preferred by new traders who have just taken interest in Forex trading. It helps you to understand the mechanism of Forex trade. It is just like having a training course for forex trading with a minor amount of income.
Characteristics of Mini Account
Some major characteristics of mini account are
Less initial Capital
It requires just a small amount of money as initial capital such as $100-$500. The amount of capital is associated with your forex broker. The minimum initial capital is fixed by the Forex Broker. Therefore you do not need huge capital for starting Forex trade. Thus if you do not want to risk your capital, then a mini account is best for you.
Although it is a mini account, yet you are not limited to deal with only one lot. You can even deal with about 10 lots at the time.
It is less risky to deal with a mini lot than the standard lot. If you have a mini account, you can have greater control on risk as you can customize your Forex trade.
There is a myth about a mini account that it is only for new traders. Definitely it is not true. It is not just favoured by new traders. Even the experienced traders open mini accounts to try some new strategy or form of analysis. It is an easy approach for experimentations.
As it is less risky as compared to other accounts, therefore you are exposed to minimize losses in Forex Trade.