I am quite new to Forex but i have been Trading demos for quite some time and have come to a point where making money is easy.I want to open a real account now and just wondered are the “micro” accounts they offer with 500:1 leverage really worth it?
Any information/advise would be very useful.
I opened an account with Oanda for 100 dollars. They let you make completely custom lot sizes even smaller than micro lots. It allows you to really adjust your risk level for each trade using a position calculator. I haven’t used any other broker so I don’t have any comparison to give, but I feel good about recommending them.
Thank you very much!
If i may ask, how is the profit with those accounts? Can you make a decent profit?
The word " Decent Profit " is relative to the person.The more money you make is relative to your account size. If you can trade with demo, you can compare your current leverage with a live 500:1 account and see if its worth your while.
Maybe see how much % u can do a month.
On a micro account with some few hundred dollars…what is a decent profit?
If you are trading for a living or just trying to compound your savings faster than your bank would is two different things.
If you want to trade for a living? I know the profit you make will differ from person to person because eveyone is a different trader but what i actually meant by my question was: do you have to be a really good trader to be able to make money on a micro account? (Enough money to one day open a normal account?)
These kinds of questions have been covered numerous times. I personally believe that it’s all relative regardless of the size of your account. If you do decide that it can be a reality you’ll probably fund with more dollars. Away from concentrating on the return %, you’ll have to decide on money mgmt. You need to be realistic which in turn will make you learn. You need to be a really good trader to make money on any account. There are professional traders that have never been to college(formal education has no bearing on how good a trader is going to be) and are at the top of the game…in the world. You mustn’t trade on just technicals. Some may debate, but the fundamentals always reign. Don’t be afraid to hold a positions if you know you’re right.
If you want to trade for a living you will most likely want a larger account. It depends on your expenses each month and how much you need to make to pay bills. I think you are unlikely to make enough money trading micro lots, but again that depends on your own financial needs. With a larger account you are more likely to succeed simply because you can risk less money per trade in order to earn what you need.
Think long term and not short term for this. Stick with your micro account until you can become a consistent profitable trader. Watch the percentage gains on your account and not the dollar amounts gained. After months or years of being profitable you can think about trying to make a living.
You will read a lot about how hard it is to trade live versus demo. Well there is also a difference between trading for a living(relying on trading for income) and trading for a hobby(expendable cash). The psychological difference is huge when you need a trade to win to pay your rent. A losing month can put you out on the streets if you don’t have the account size to handle drawdowns.
Work on your technique. Work on your risk management. Compound interest will get you where you want to go eventually. Think long term. Good luck with your trading and I wish you financial freedom.
Hey Duanne. You say you find making money easy on your demo account, what system do you use to do this.I find it easy to lose money on my demo ( must have a faulty one !). Any tips would be a bonus
Using a micro account should be for you to gain experience and not to earn money for a living . If want to make large profit then you need a bigger account with large capital to trade. Earning large profit then you have to be skilled and well experience in trading the market.
Micro account has lower risk than mini account, standard account or ECN account. In some brokers, it was called as cent account. Micro account has lower value in each pip than standard account so it’s possible to trade well with low amount of capital when you’re using micro account then you could use strict money management which is capable to hold more pips in floating movement than using standard account.
Hi Duanne.
I agree with 3xfx. Just calculate or try how much percent you can do a month.
Yes micro account not produce large profits they are low risk and low profit generating accounts your need to make high profits is easy with standard trading accounts. Micro accounts are best for live trading practice.
Since this is going to be your first live account you definitely should go with micro account and some small deposit. Do not expect to make some big profits because this should be your test account. Having a good trading strategy on demo account is one thing and trading on live account is totally different thing. That’s why I will recommend you to test your strategy on this micro account with some small deposit and if it’s working after at least one year than you should consider opening bigger account and making bigger deposit.