Hey guys, I already have a cent account, but a friend has asked me to switch it to a dollar account. In your opinion, which one is preferable? If dollar accounts are OK, mention a US broker that provides dollar accounts.
I wont name a broker because others will do so (work with regulated ones) just I think you do not know the main difference between them! If you are new to trading maybe cent accounts are good for you but how can a friend tell you to how to control your trading journey?!!
Given that 98% of traders lose money, it would be prudent to continue to lose cents before you plan on losing dollars. Establish that you have a market edge in the first place before you run. My personal opinion and experience is that unless you conduct over 300 trades you will not be able to determine whether any particular strategy, or series of strategies, has an edge at all. Did you spend a significant amount of time running a demo account? Have you established your trading plans? Do you know how to maintain records to analyze whether or not you have an edge. And most importantly, if you lost 100% of your bank assigned to trading, would it adversely affect your lifestyle?
1 Like
that’s for sure! (regardless of your choice of car) 
The choice between a cent account and a dollar account can depend on your trading style and goals. Cent accounts can be a great option for beginners, as they allow you to trade with less capital and lower risk. On the other hand, dollar accounts may offer more options and features, depending on the broker.
As for US brokers, there are a number of them that offer dollar accounts. Always do your own research to see which one suits your needs the best!
Dollar account opens up an opportunity to place trades with larger position size, this is just access to more risk (and potential profit). If you have a strategy that is consistently profitable with moderate drawdown then it’s definitely worth to switch.