The first thing to do before trading is to pick an excellent forex broker, after that you need to make your first deposit into your account. Mind you, there are different kinds of [Only registered and activated users can see links. ] that might be offered to you by your forex broker. Since it allows traders with different trading capital to open an account and execute their trading strategy with proper risk management.
Hence it is vital to choose a trading account that will suit your trading capital. Currently, there are three major forex trading accounts:
1. Standard account – This is the most common accounts used by traders, who has the sufficient capital. One lot in a standard account represents 100,000 units of the currency you would like to trade. Thus, 1 pip move is equals to $10 or whatever your account currency is.
2. Mini account- This account is best for traders you have less money to trade. This means that any account less than $10,000 is considered a mini account. Thus, one lot in a mini account represents 10,000 units of the currency you would like to trade; e.g. 1 pip equals $1.
3. Institutional account- This account is preserved for fund managers and corporations. The lot size are the same as the standard account, however spreads are lower due to higher trading volume.