Free Account

When it comes to trading on the forex market, there is nothing more important choosing the right forex trading broker. Start Up Costs.

There are a few things you need to know before you decide to go out, join a broker and start trading. The first thing you need to look at when it comes to choosing a forex broker is the required start up costs involved. This usually ranges anywhere from$ 1000- $10, 000 depending on the broker and the type of account you wish to open. The majority of brokers require you to have enough funds, before they allow you to open an account. There are usually three different accounts- a mini account, standard account and an advanced account. Mini accounts have small start up costs, usually around the$ 1000- $2000 mark.

Mini Accounts. They also don' t offer trading on the lowest spreads which means the potential to make a lot of money is severely reduced. A lot of forex brokers make their money by charging their clients commissions. When it comes to choosing a broker, make sure you sign up for an account that charges no commissions. Make sure you check to see this isn' t the case before you sign up. Standard accounts, usually have slightly higher start up costs, anywhere from$ 5000 and upwards.

Standard Accounts. They also allow for trading on much lower spreads then that of the mini account, which usually means you have the potential to make much greater earnings. Advanced( Institutional) Accounts. If you have the money for the initial start up costs, then you' re best off going with a standard account rather than a mini. Advanced accounts are made for advanced traders only. They also require much higher startup costs, sometimes$ 50, 000 or more! They allow for trading in the lowest spread, usually 2- 3 pips on the major currencies and instantly execute every trade you make.

The potential to make a lot of money is certainly higher with this particular account, but so are the losses, so leave it to the experts, unless you are one yourself! Most brokers allow people to try out forex trading before they make a decision to create an account. Free Account. These free accounts are just practice accounts and don' t deal in actual real money. They are a good way to get to know what it's like to trade on the forex market and it's recommended that you try one of these accounts before you move onto the real thing.