Mini accounts are usually opened by traders who are new to the FX market and do not have the funds to open a larger account (sometimes referred to as a "standard account"). A forex mini account can be opened with $250 or more, whereas a regular account needs to be opened with $2,500 or more. To open a mini with as little as $250, click here to complete your account form online. Can you open a regular account with $2,500 or more? Then take a look at our other e-book.
NEW: Since all accounts (as little as US$250) can now trade all types of lots (standard, mini, and micro), the mini and standard e-books were consolidated into one. All clients, no matter how small, will now receive the same unique trading e-book when they open an account.
Free Mini Trading E-book
This is an exclusive e-book available only to our clients. Our in-house traders have put together this new e-book for our mini account traders. This e-book provides a step-by-step strategy to trade your mini account. It includes where to enter and exit a trade, as well as proper money management techniques.
To receive this unique and extremely practical e-book, all you have to do is open a mini account and fill out a short form.
Step 1. Click here to open an account online. Filling out the online application is the easiest and fastest way to open an account. Once your account is funded, you will receive your account number and then you can proceed to step 2.
Do Not Request your E-book Without having an Account Number.
Step 2. Click here to fill out a short form to request your trading e-book. It is important that you read this e-book before you begin to trade your mini account.
If you want to learn how to fund your account with a credit card, you will be provided the instructions after you submit the online form.
Mini Contract Sizes
In a mini account, the lot or contract sizes that are traded are 10,000 of the base currency, whereas for a regular account, the lot sizes are 100,000; in other words, the mini contract is 1/10th the size of the standard contracts.
What are the Advantages of a Mini Account?
Many. With a mini account, you will enjoy many of the same benefits as with a regular account, such as a free trading platform, small spreads, etc.
How Can You Trade 10,000 worth of a Currency with Only $250 in an Account?
The answer is because of "leverage." Leverage allows you to trade more of a given commodity (stocks, currency, futures, etc.) than you have money in your account to do so. With a mini account, the margin deposit requirement per $10,000 lot traded is $20. That means that the leverage is 500 to 1 (10,000 divided by 20 is 500). Thus, with $250 you could trade a maximum of 12.5 mini lots, with $500 a maximum of 25, with $1000 a maximum of 50, etc. This leverage is 125 times greater than for stocks (day trading stocks provides a 4 to 1 intraday leverage for traders that have $25,000 or more in an account by U.S. law). Using a high degree of leverage is not always appropriate, but at least the superior leverage found in mini accounts provides the trader with a greater degree of flexibility in the implementation and execution of different trading strategies.
Mini Trading Example
If you are trading currencies with a regular account and set a 25-pip stop loss, this is equivalent to a potential loss of $250 (pips and other basics terms are explained in our free education section). With a forex mini, this is equivalent to $25 (remember that a mini lot is 1/10th the value of a standard contract – consequently, the value of a pip when trading a mini account is also 1/10th the value of a pip for a standard account [$10 a pip for a standard account / $1 for a mini]). As a result of this, trading in units of 10,000 gives the smaller trader more flexibility in customizing the size of his trades and managing his risk.
Mini Trading is Great for Accounts Under $10,000
Traders that want to trade with less than $10,000 are better off opening a mini account. This will not only give a trader more flexibility in the implementation of different strategies, it will also give him more staying power in the market since he could take advantage of multiple trades without over-leveraging his trading account.
If you want to ask us any questions about setting up an account, please contact us.