Mini Forex Account - Trading with just $250

		Free Forex 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 forex 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 a mini 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 two. Do not request your forex mini 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 mini account with a credit card, you will be provided the instructions after you submit the online form.

Mini Account 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 forex account, the lot sizes are 100,000; in other words, the mini forex contract is 1/10th the size of the standard contracts.

What are the advantages of a forex mini account?

Many. With a mini account, you will enjoy many of the same benefits as with a regular forex account, such as a free trading platform, small spreads, etc.

How can you trade 10,000 worth of a currency with only $250 in a mini 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. With a mini account, the margin deposit requirement per $10,000 lot traded is $50. That means that the leverage is 200 to 1 (10,000 divided by 50 is 200). Thus, with $250 you could trade a maximum of 5 mini lots, with $500 a maximum of 10, with $1000 a maximum of 20, etc. This leverage is 50 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 forex accounts provides the trader with a greater degree of flexibility in the implementation and execution of different trading strategies.

Mini forex 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 forex 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 forex account [$10 a pip for a standard account / $1 for a mini account]). 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 forex trading is great for accounts under $10,000

Traders that want to trade with less than $10,000 are better off opening a mini forex 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 forex market since he could take advantage of multiple trades without over-leveraging his trading account. If you want to trade with a lot more than $250, then take a look at our powerful trading ebook designed by professional traders.

As explained earlier, the easiest way to open a mini trading account is by using our online application. The online application process is the best and most secure way to avoid delays with the set up of your account. If you do not want to sign up for a forex mini account online, but want to print out the forms instead, please print, fill out, and fax a copy of a mini account application by clicking here. You also need to fill out and fax a W-8BEN if you are not a U.S. resident or citizen as well as a copy of 2 picture ID's, one which must be a government issued ID like a driver's license or passport. United States residents or citizens only need to fax 1 copy of a government issued ID.

If you want to ask us any questions about setting up a mini account, please call us (305-600-4651) or email us (support@forex-day-trading.com).

* High leverage and low margin can multiply both profits and losses in a trading account.