Cent account is considered as one of the new concepts which is preferred by a number of individuals. However, it was first introduced in 2006, with the technological improvements; forex cent accounts are getting much popularity. Experts believe that these types of account are considered to be the exception in the forex market. In fact, cent accounts are operated in the same way as US dollar accounts are handled.
Forex cent account:
Beginners who are looking for a delightful entry in the forex market should gear up their experience with cent account. Although you have a support of demo accounts where trading is done with virtual money, cent accounts will be the best choose. Moreover, you can find certain reliable forex cent brokers who offer forex cents account opening form.
Are you willing to test the market? Then, it will be a perfect choice for every newcomer. Some forex broker offers different types of cent accounts where it is classified as fixed spreads and floating spreads. You just need an expert advice to perform trading with real money in cents.
Traders who open standard, mini or micro account have to follow some trading conditions of minimum deposit. In this phenomenon, standard account holders need $1,000 capital to trade, mini account holders should put up to $100 capital and micro account holder should put down $10 capital to trade.
If you have a forex cent account, then there is no minimum deposit limit. It is believed that cent accounts are one of the best ways to enter into the real trading process with a very small initial investment. Cent account holders can do trades with any minimal amount that is liable to place a trade. There are few forex cent brokers who offer forex cent accounts leverage for enthusiastic traders.
Advantages of forex cent accounts:
- It can be considered as a transitional stage that comes after demo account trading with virtual money and before dollar account trading with real money.
- Foremost support will be given to the beginners with real money trading that will be in cents. An opportunity to do trade with comparatively less amount of real money.
As there is no minimum or maximum deposit limit, traders can make a trade with the minimum available position of 0.0001 of a standard lot. Well, every good thing has some limitation that you should keep in mind before opting.
If traders open a cent account, then you have to accept some of its limitations that include:
- Your usage will not reach the higher level until you open a dollar account. This is because if you deposit higher amount in cent account, then it will be quite difficult to calculate and execute the trades exactly.
- It is likely to come with higher spreads than dollar accounts.
An individual who desires to open forex trading account should start from demo account and understand different concepts. With the help of forex cent account, you should learn real money trading. In this way, your next step to dollar account either with the mini or standard account will give better results.