Mini Forex Trading: Small Deposit Accounts
One of the things that appeals to so many people about Forex trading is the fact that so many different people can so easily do it. Not only is it the most common form of worldwide trading in terms of the amount of people trading currency but it is also the most common form of online trading, and really the two terms aren’t necessarily mutually exclusive. As far as online trading goes, Forex trading was perhaps the very first form of trading to be done largely on the internet and because of this, people that were normal, hard working people were able to get involved in international Forex trading. As their experiences were positive ones, the reputation of Forex trading grew and more people continued to get involved with it.
The fact that Forex is available to everyone with an internet connection, with a small investment and a little hard work, there is most definitely money to be made, and the newer Mini Forex accounts appeal to those small investors who wish to give Forex trading a shot. Nowadays, the internet access really isn’t enough to draw more people to Forex simply because so many people already trade Forex online. Therefore, it has fallen to the companies to come up with other ways to draw people to Forex trading and the one thing that many of the online brokers have now come up with is the concept of a mini Forex account.
There are now Forex brokers who allow you to make tiny deposits, deposits of just $10 to check out the software, and see if this way of earning money is for you. Long gone are the days when Forex trading was a rich mans hobby, as now, everyone can use their skills to earn extra cash. Forex trading always trades on a margin. In other words, the typical way to control a Forex account up until the present day was to use somewhere in the range of $2,500 in order to control a margin of $100,000. This $100,000 would be the amount of money you actually used to make the trades, and if trading in some common currency pair that would amount to a pip value of $10. This was a very good way of doing things at first, but then the quick realization came along that not everyone could afford to have two thousand dollars or more sitting around their account.
The solution to this, in the eyes of the online brokers at least, was simple; make it so that people could get accounts with a pip value of $1. These accounts, sometimes referred to as mini-accounts by the Forex brokers, are accounts that people can start with as little as a few dollars and what makes them so amazing is that people actually can still control up to $10,000 on the margin. These amounts, as previously mentioned, to a pip value of $1 and therefore still a reasonable chance at having a profitable day. People have been able to rely on making somewhere in the range of $60-$70/day on average and having enough money after a month to switch to the full accounts. Remember, if you are able to make $50/day consistently at $1/pip, then when you have enough money to switch over that profit changes to $500/day; not too shabby right?