Forex Platforms

Consider a Forex Mini Account

One of the issues that have plagued forex trading for years is the image that one must be very wealthy in order to trade on the currency market. This, however, is untrue. With the advent of online forex trading, and new products and services designed to make FX trading possible for nearly anyone, the foreign exchange market is now easily accessible. If you do not have the money to open a regular online trading account through a forex platform, it is possible to do so with a forex mini account.

What is a forex mini account?

With a regular forex trading account, you are usually required to make an opening deposit of $2,500. This kind of capital may be hard to scrape together in some cases. However, many forex brokers – including dbFX – now offer what is known as a forex mini account. Instead of requiring $2,500, you are only required to start with $250 to open an account. This makes trading on the forex market a little easier and less expensive.

Of course, with this lower capital requirement comes a limit on the size of the position you can control. With a regular account, you can control 100,000 units. With the forex mini account, however, you can usually only control 10,000 units at a time. This means that your profits will be lower. This is common with currency trading (or any investing): The smaller your position, the smaller your profits. Deutsche Bank, through its dbFX online forex trading platform, offers the opportunity to control varying positions, in increments of 10,000 units, depending on how much capital you have. Many forex brokers only offer the option of controlling 10,000 units or 100,000 units, but with dbFX, there is the opportunity to control between 30,000 units (or less) and 120,000 units (or more).

A forex mini account can be very helpful for those starting out with foreign exchange trading. The smaller capital requirements and lot sizes can limit losses so that things don’t get too out of hand. In fact, a forex mini account is often used as the second step in learning currency trading – after learning the basics with a free FX trading account.

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