Lot Size of 1 (not 1 unit - 1 pair) vs demo

Broker Discussion Forex Brokers
1

I just graduated and I’m in the process of looking for a broker.

  1. I just looked at Oanda (MM) and see that some people on their forum recommend using a lot size of 1 pair ($1) instead of opening a demo account.

Does anyone know of a problem with this idea? Suggestions on what to look for when I examine it further?

I haven’t verified this yet, but I got the impression that I would still get the same spread as everyone else.

Assuming that it’s true, would they keep fractions of a penny in my account? Obviously the spread of .9 on EURUSD would be less than $0.01.

  1. I haven’t spent much time, but I don’t see any comments about Oanda in this forum. Any comments would be appreciated.

FoxGuy

2

A $10 Oanda account will have the same trade execution and spread as a $10,000 Oanda account. This is fine to use as a demo or practice account. There are a few other brokers that have cent accounts IBFX and LiteForex do. I am sure there are more. A cent account at other brokers may have different leverage and spreads then a micro or mini account. Check this out before you open an account, this may not matter to you but you should know what the differences are. I like Oanda the charting is primitive on the java platform but the order placement and management is A+. You can always chart on an MT4 demo.

3

What is an MT4 demo? Where do I find it?

4

MT4 is short for metatrader 4 its the most common trading platform around for us retail traders. There are a ton of custom indicators, scripts and EAs (robot traders) for free just use Google. Most brokers offer MT4. Its great for charting. Just open a demo account at a broker that offers MT4. Oanda does offer MT4 however the smallest trade on Oanda mt4 you can place is 1000 units.

5

I think I remember reading that someone said that he would use MT4 to do his chart analysis but then use Oanda’s platform to enter his 1 pair trade. Someone else said that it would get really confusing. Do you have an opinion?

6

try it and see if you get confused all this stuff is free with demo accounts.

7

Thanks. I’m still interested in other opinions.