Standard, CENT, ECN and Demo are the four best forex account types — and each has its own advantages and disadvantages. Choosing the best Forex account type for you involves careful consideration of several factors, including what type of trader you wish to be, your tolerance for risk, the amount you invest, and your trading strategy. It is important to select the best Forex account for you, as it impacts your performance and profits. Lets go over each one individually.
1. Standard Account — Most Popular Trading Account
As the name suggests, the Standard account is the primary trading account offered by most Forex brokers. The name may vary from broker to broker; it may be called a classic account or carry the brokers primary account name. The main advantage of using a standard account is that brokerage firms typically offer their best features and benefits to standard account holders. For Standard accounts, 1 lot = 100,000 currency units.
Another beneficial thing about choosing the standard account is that you are free to trade a variety of trading instruments like currency pairs, commodities, high leverage, low spreads, high affiliate rebates, seasonal bonus programs, and the ability to trade in more volumes simultaneously. Using a standard account can also result in greater profits if you manage your trades well.
Despite the fact that using a standard account can be more profitable, it is also likely to be riskier. You need a relatively high knowledge of forex instruments and trading knowledge in order to open a standard account. Thus, this type of account is more suited to skilled and capital-rich traders.
2. CENT Account — Best for Low Capital Investment
A Forex CENT account is a trading account with a balance measured in cents. That is, 1 USD = 100 cents. CENT accounts are ideal for Forex beginners since they allow trading with real money without risking too much.
Beginner traders can use CENT accounts to make the transition from a demo to a real trading account. The minimum lot size required is 0.01 lot, Therefore, it is possible for anyone to enter the forex market and begin trading with very small capital.
CENT accounts are best for testing and developing forex trading strategies. With the low-risk advantage, you can experiment different trading strategies while simultaneously sharpening your skills and gaining experience. However, a smaller capital will only yield smaller gains. If you want to gain bigger profits, its not the best idea to open a CENT account.
3. ECN Account — Direct Access to Market
ECN stands for Electronic Communication Network; it is a system for trading Forex without agents. ECN accounts are one of the most popular account types because of their transparency and direct market access. Forex brokers offer an ECN account along with traditional accounts and charge a commission per lot, with lower leverage and minimum deposit.
ECN accounts are a perfect choice for professional traders seeking optimal trading conditions. With ECN accounts, trade execution can be faster than with other account types since all trades are executed immediately without requotes. Since ECN accounts instantly match orders from traders with the best buy and sell prices, they offer lower spreads.
4. Demo Account — Best for Beginner Traders
When it comes to Forex account types, a Demo account is the one that you will come across at most of the brokers. If you are new to Forex trading and want to explore the Forex market without actually spending your money, a Demo account is what you need.
Trading on a demo account mirrors real-world forex trading. Demo accounts users can explore real-world trading functions, like analyzing price movements, testing out risk management strategies, understanding spreads, leverage tools, and utilizing stop-loss and take-profit orders.
Many people on the Forex market have this misconception that demo accounts are best suited for beginners only. While the truth is, demo accounts can be very beneficial even to those who have extensive experience in Forex trading. One of the best aspects of demo accounts is that they are an ideal tool for exploring and experimenting with new forex brokers, platforms and strategies.
Benefits of choosing AximTrade Forex Account
AximTrade offers a variety of options when it comes to forex accounts. Traders can choose the best account type based on their trading strategy, experience, and investment capital. AximTrade offers up to 15 trading accounts, including 7 Standard Accounts, 2 Cent Accounts, 5 ECN Accounts and 1 Infinite Leverage Account per Active Member Area.
As a global leading Forex broker, AximTrade provides forex traders with the highest leverage on the market, up to Infinity. Register to explore the diversity of forex currency pairs and the best trading conditions with easy-to-use technology, educational resources, technical analysis, and highly competitive trading options like Copytrade.
Featuring an execution time of 0.004s, 100+ trading instruments, flexible leverage, and a 100% forex bonus, AximTrade stands out as the best broker for its reliability and excellent trading conditions. Discover luxury trading with a minimum deposit requirement and a diverse range of tools offered by the leading broker. Check the full Aximtrade Review to learn more about the brokers reputation in the forex market.
Original Article: How to choose the Best Forex Account
Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers personal circumstances, investment experience, or current financial situation.
