Mini Account advice

Beginner Questions
1

hey guys,

I am considering opening a mini account with a broker.

I would open it with the minimum 300$ and they would add another 100$ to that.
they are offering 100:1 leverage.

However my problem is this , if I can only trade mini lots at 100: 1 leverage , that means that I can only have one or two positions open at a time and I can only handle variations of 200-300 pips at a time.
Am I right?
Is this a wise move?

Or would it be better to open a micro account with another broker for 500$ and then trade microlots until I feel confident?

whats the best move?

2

Hi, I would suggest you wait until you have at least a 1000 bucks or more! you should only use 2-3% of your capital per trade or 20-30 dollars (20-30 pips)for a mini account. If you have only 300 bucks, you will CERTAINLY lose your little stake. Remember your broker will take the opposite side of your trade and they want to cancel you out quick like. and with that small amount of money, you just don’t have the staying power in the market!!
The Forex market is merciless, you are playing with the big guns. Make sure you try a paper trade account first until you start making money there before you put YOUR real money on the line etc.
Hope this helps!
Hendrikone

3

I say forget about the bonus as 100:1 leverage is pretty risky.

I say head over to Oanda with your cash. You can trade any amount you want. You can even trade a fraction of a penny if you wanted to.

Their max leverage is 50:1 which is more reasonable with a wise money management strategy.

Its not all the doom and gloom as the other poster painted with your account size.

The same principles apply whether you have 300 bucks or 300,000 bucks.

4

babypips school says that professionals who have 50k can trade regular lots, if they have 10k or more then they trade mini lots, so if you have less then 10k it would be wise to trade micros, if you dont even have 1k… then you should paper trade until you can come up with the money.

reread this section, it will clarify some things up for you
Leverage the Killer - College: The Number One Cause of Death for Forex Traders - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

5

I don’t think Babypips had Oanda in mind when they wrote that.

I personally think you should papertrade only to find a strategy that works for you. Once that’s done go live with any amount.