Cent account on Forex

Cent account on Forex

Cent account on Forex

Every day there are more and more participants in the Forex market. Professionals prefer to open standard accounts, while beginners are careful to try a cent account after they have confirmed the effectiveness of their trading system.

You can trade on a training account at least indefinitely, because the money on it is still virtual. Over time, one or another novice decides to open a cent account on Forex in order to earn not virtual, but real dollars. After all, no one wants to waste time just like that, staying on the margins of real trading for a long time.

Beginners believe that the attitude to the real account will be more serious. This will increase the revenue from trading selected assets. But for big earnings, you will need a large investment, not a cent account in Forex.

However, if You do not have the opportunity to invest 5-10 thousand us dollars, then you will still have to choose a broker with a cent account. But don't worry. All professional traders go through this process. So this is quite normal practice. Even if the first Deposit is drained, the trader will lose not thousands of dollars, but thousands of cents, which will not affect the family budget so much. But this will allow you to think about mistakes, analyze them, and avoid them in the future.
What is a Forex account?

Draining the Deposit is the result of a slow study of the practical part of trading, as well as yourself (psychological aspects). This is also due to the fact that many newcomers ignore the cent account, and continue to sit on demo accounts.
So, what are cent accounts and why are they needed? The fundamental difference between any cent account and a dollar account is that in the latter, the profits and losses are an order of magnitude greater than in a cent account. To better understand the differences, we will compare the standard and cent accounts below.
Dollar account on Forex

The trading Deposit is displayed exclusively in the us currency – dollars. The minimum lot starts at 0.01. A price movement of at least 1 base point for such a lot will mean $0.1.

Nowadays, almost all DC provide the opportunity to open a dollar account. These include Forex4you and Instaforex. We will talk about them a little later.
Cent account

The Deposit amount is displayed in cents. For example, the same $50 in the MT4 terminal will look like ¢5000.

The minimum lot will be slightly different here. If the price moves up or down, the trader risks losing or earning $0.01 (one cent) with this minimum lot.

It turns out that with different lots and accounts, the risks vary greatly. So keep this in mind when you decide to open a cent account in Forex.
What are cent accounts good for?
Below we will talk about the most significant advantages that relate to cent accounts in Forex, and it does not matter which broker they were opened with.

Every trader has access to potentially profitable deals. Moreover, you can do this not only using a PC, but also via a tablet or smartphone, while away from home.

It doesn't really matter what amount is on the trader's account, the main thing is to be smart before a particular transaction is opened. You should think about making a decision several times to avoid possible mistakes that will lead to drawdowns on the Deposit.

The owner of a cent account does not need to top it up with $1 thousand, as it was on a traditional dollar account. $10 is enough to get the amount of ¢1000. Note that some brokers with cent accounts specifically create all the conditions (no minimum Deposit) so that the number of cent accounts only multiplies.

With minimal cash costs, a novice within a cent account is able to complete Forex training. With it, they will be able to understand how the market works, thoroughly test any trading strategy on a real account, and not on a demo account, as well as learn about such concepts as money management and risk management.

On a cent account, professional Forex market participants check out new trading ideas, Forex indicators and other trading tools that allow them to earn money.
Brokers with cent accounts

As we wrote above, today you can find many brokers with cent accounts in the Network. Below we will look at the most famous of them.
Forex4you

One of the main directions of providing Forex trading services at Forex4you broker is opening one or several cent accounts.

Clients of this broker have the opportunity to choose among two different rates of cent accounts the most acceptable. Currently, the company provides:

Cent;
Cent NDD.
The first (Cent) contract execution time is 1 second, the second (Cent NDD) 0.067 seconds.

The first and second rates are special accounts with the option of instant execution of transactions in accordance with the current exchange rate on the trader's terminals. The value of one point for both types of accounts is only 0.0001. That is, a tenth of one cent. This allows you to significantly reduce the possible risks during trading on any assets.

The second cent account (Cent NDD) has a floating spread (from 0.1 pips), and the Commission for each lot traded is $10. Leverage can be selected in the range from 1:10 to 1:1000.

What does a Cent NDD account even mean? This is an account with market execution. In other words, the currency is sold and purchased at the current price.

Note that among the advantages of accounts that have instant execution is the complete absence of slippage. At the same time, you can observe a refusal to execute an order due to price obsolescence in a highly volatile market movement. In other words, the contract will be executed in any case, but not at the price when the first order was considered.
Instaforex

Another Forex broker that provides the right to open a five-digit cent account. If you have just left the demo account field and are not quite sure about the profitability of your trading strategy, then We recommend opening a cent account on Instaforex. We are talking about choosing micro-Forex. The minimum price of one point is $0.01. Provided that the account is opened in US dollars. That is, instead of 0.01 us dollars, the trader will see 1 cent.

Opening a micro-Forex account with this broker will be appropriate for all beginners and all those who want to try their hand at trading. This type of account is also often opened by old-timers of the Forex market.
Note some of the conditions that this broker provides for this type of account:

The opportunity to try your hand with one dollar or Euro. But for profitable trading, it is recommended to top up a cent account from $10, so that the account has 1000 base units.
There are no spreads on the Cent Eurica account, which is an ideal solution for any scalper.
The leverage varies from 1:1 to 1:1000.
They allow you to easily test any trading robots and even monitor your accounts.

Conclusion

Cent accounts on Forex are an ideal solution for those who still trade assets at a non – professional level. At the same time, they allow you to not only consolidate your trading skills, but also earn a profit.

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