Micro Forex Brokers
The Micro Forex Brokers make a revolution in retail foreign exchange trading nowadays because Micro Trading you start buy or sell different currencies as low as 50 dollar and this because the Best Micro Forex Brokers provide this service to attract more retail foreign exchange traders and increase their clients , first of all lets see what is Micro currency trading and the advantages of it so continue read this article to the end.
- What is Micro Forex ?
The standard lot size in Micro Forex Trading in $1000 for example if you buy 1 lot on pair euro versus U.S dollar in fact you buy 1000 dollar of that currency but the standard lot size in Currency trading is 100.000 dollar and in mini trading is 10.000 dollar so Micro Forex Accounts are the lowest account size that you can start trading in retail foreign exchange trading and you must note this type of account provide just by Micro Forex Brokers and not all of Forex brokers so ask first from your broker if they provide you Micro Forex Account or no , Now you know What is Micro Forex Trading .
- Advantages of Micro Forex Trading
The best and most important advantages of Micro Forex Accounts is you can start sell or buy several currencies with really low amount and this is really sweat able for newbies to become a professional and experienced trader because due to foreign exchange market is too risk you can’t start trading from begin , First of all you must increase your knowledge about Foreign exchange market and then practice several month in Forex Demo Accounts and the start your real trading , Micro Forex Brokers will help you in this step by provide Micro Trading for you to start with just 50 dollar instead of start with 5000 dollar due to most of traders lose their first account because of lack of knowledge or experience just imagine if you lose 5000 dollar in your first account , Its really painful but you will not upset if you lose 50 dollar with Micro Forex Brokers because the amount is too low and you will earn much more in future because now at least you find foreign exchange market is too risky and you must practice a lot and increase your information to earn profit.
The other Advantages of Micro Trading is leverage , in standard foreign exchange trading you have lower leverage because the amounts on standard accounts are big and brokers will not provide you high leverage on big amounts the maximum leverage they can provide you is 1:50 but with Micro Forex Brokers you will have much more leverage even 1:500 so you can invest low money while you can trade more money so you will earn more profit with Micro Forex Account because of more leverage.
Another advantages of Online Micro Forex Trading is fast speed , your position will match much more faster than the standard accounts or even mini accounts because the amount of your positions are too low so Micro Forex Brokers can match your foreign exchange positions faster but in standard accounts because of lot size and the amount of money is big brokers need more time to match your foreign exchange positions so you will have delay on standard accounts but usually Micro Forex Broker will match your positions too fast .
- How Choose The Best Micro Forex Broker ?
Regulation is one of the important thing you must care about it when you open your Micro Account with the broker because regulation shows the broker is responsible about your accounts.
Currencies Spreads are usually important but on Micro Forex you must really pay attention to it because most of brokers get high spreads on online micro Forex accounts sometimes you find even more than 5 pip spread between a currency pair while you pay 1 or 2 pip for the same currency pair on standard accounts so before you open your Micro Forex Trading Account with the Best broker see the online spreads page they get from their clients or open a demo account and download their platform so you can see the spreads they get . Most of foreign exchange traders don’t care about spreads of currency pair because they think it is low amount but they really make big mistake in long term because just imagine if a trader take 100 position per a month on a currency pair has 2 or 3 pip difference with the other brokers you will lose something around 300 pip per a month just because of broker so i really recommend open your Micro Forex Account with a broker provide you the lower spreads on the currency pairs you usually trade.
Trading platform are also different on some Micro Forex Brokers than the platform they provide on the standard accounts or demo accounts so ask the broker also if the platforms are different and download the platform for Micro Trading and start buy or sell currencies as demo account until you become familiar with the platform .
Sometimes currency pairs on Forex Micro Accounts are different with standard accounts in another word some foreign exchange brokers provide you less currency pairs than the standard accounts so you must be careful about it and check if the currency pair you usually trade on it list on the Micro Forex Broker you want to open your account or no , you can easily ask the brokers by email or online support or download they demo platform and for the last step you can see their online currencies page they show their spreads and currency pairs they provide for their clients .