Got it. What are the transaction costs like for a cent or micro account?
thanks for this. Like I’ve said in a previous comment I want to try trading live but with a small account balance.
Live trading of any kind is different than paper trading. Both are valuable for learning, but having real money in the game feels different.
Make sure your time frame and methods cover the costs. For instance, in the USDCAD half the US session yesterday and half the Asian session last night were just ~ 14 pips range. I use a commission plus account as it saves me about 2/3 of a pip over spread only. Doesn’t sound like much but that is real money, especially long term. 2/3 or .67 is almost 5% of 14.
A real account will give you experience in making real money and the nuances of it.
The markets are your friend. They are full of opportunities, but each one is a little different from the others.
It can be suggested for start but pay attention to its cons too.
The transaction costs for cent or micro accounts can vary depending on the broker and the specific terms and conditions they offer.
normally (unless your broker has some weird “minimum commission rule” concealed in the small-print) they’re absolutely tiny, exactly as they “should be”
commissions quoted are normally “per full lot”, so even if you use a broker with both spread and commission, the dealing costs on a cent or micro account will be almost too small to notice: for example, if they charge $6 per lot commission, and you trade 0.01 lots (one microlot) the commission-fee on that should be $0.06
they all have some kind of “support” (hopefully “live chat support”) and you can always ask them to clarify in detail
but if your concern is that you’ll end up paying disproportionately high commissions on a micro account, the answer is “you won’t” - they wouldn’t be able to keep their customers, that way
The choice between trading on a micro or cent account depends on your individual trading goals, risk tolerance, and available capital.
Cent accounts is too small I even can’t felt difference from demo trading that’s why I prefer to use micro accounts.
Micro accounts can be advisable for new traders; however, if they start with demo accounts, it is not essential.
If you want to stay satisfied with small earning and shorten trading risk, it’s no problem to use micro account.
A profit is still a profit. I prefer keeping the risk to minimum. So, I also trade with a micro account.
When I see remarks like this I cringe. For me personally while a profit of 100% on US$20.00 is fine I dont see it in the same light as 100% on US$20k. It is like people trying to tell me that a dollar is a dollar no matter where you are but at the same time one US dollar is worth J$155. When I ask them to give me US$1k for my J$1k they have no reply.
glad i’m not the only one (i think i quite often am, when i see things in this forum that make me cringe)!
Cent accounts are a good way to start trading because they let you practice with real money, but in smaller amounts. It’s lower risk, helps you gain experience, and develop your trading skills without risking too much cash upfront.
Trade on a micro cent if you want to avoid taking risk on small capital. Otherwise you can use standard lot size.
Using demo account and micro accounts can lead to a great and profitable start of trading.
Use micro account provided that you want to limit your trading risk. Especially if traders have small trading capital, they should rely on micro account.
Which broker do you use?