Newbies often wonder what is the difference between the most popular Forex trading accounts and which of them is better to start with. The team on JustForex decided to spread the word about all common accounts as a reason of it. Now make yourself comfortable and let’s take a small Forex journey.
Demo Forex Trading Accounts
This one will definitely suit to newcomers. You won’t trade with real money, but only with virtual funds using this account type. Nevertheless, you can open demo account with trading conditions which are equal to the live ones (Classic, ECN, etc).
Classic Forex Account
Classic is the most common type of standard accounts. These accounts have floating spreads from 1 pip and the maximum leverage of 1:2000. You can trade up to 28 currency pairs and 2 metals on them. There are no commissions on Classic accounts at JustForex. Such accounts are advisable for intraday trading or using EAs.
Cent Forex Trading Accounts
Cent accounts are a great choice for both beginners and experienced traders. They are similar to Classic accounts, but cent lot is 100 times lower than a standard one! This means that you can use smaller sums of money for trading on these accounts. Professional traders can also benefit from these accounts while testing new strategies or automated trading systems.
ECN are perfect for scalpers (both real people and EAs) and intraday traders. The spreads float here and start from 0 pips, leverage can be up to 1:500. Choice of financial instruments is quite large too: you can work with any of 88 currency pairs and 3 metals. All transactions opened on ECN accounts are transferred to the interbank. Note that the commission on these accounts is 5 units of the base currency/lot per round.
Islamic Forex Trading Accounts
Swap-free Islamic accounts exist specially for Muslims. If you profess Islam, trading on all your live accounts will go without swaps. Any type of account can become a swap-free one (Classic, ECN, etc.)
No Dealing Desk Accounts
No Dealing Desk accounts are like intermediaries between Classic and ECN. You can trade 88 currency pairs and 3 metals without commissions. The spreads float from 0.8 pips and the maximum leverage is 1:500.
That’s all! We hope that this article was helpful to you. So, choose an account you need and start trading!
Article provided by JustForex