Opening a trading account is similar to having a bank account. Imagine using a bank account that does not allow you to pay with available currency or limits you in paying amounts. This would be very uncomfortable and completely useless for you. The same happens when you choose to open a trading account that is not relevant to your trading skills and goals.
Many trading platforms offer you different options of trading accounts including standard and premium accounts. You should make a choice between them according to your trading experience because not all of them are suitable for noobs or experienced ones.
In this article, we will introduce you to some of the great account types for different types of traders and show you great trading possibilities to achieve your trading goals quickly and effectively.
Everyone has experienced the difficult steps of beginning trading. If you choose the right account type for you, it will be easier to trade profitably and improve your knowledge, at the same time. For beginners, the low risk and high chances are most important. This is what the FOREX cent account suggests. As the name claims, you can start trading with several cents and minimize the losing risk that way.
The main difference between regular and cent accounts is lower available funds. Because the main amount of trading is cents, your deposit number will be also shown in cents. For example, instead of showing you 1 USD, it will be written as 100 cents. You can use a cents account with USD, EUR, and GBP.
Because deposit amounts are low, you shouldn’t expect high profits from this account. It is more focused to minimize trading risks. Allows you to test trading strategies, improve your skills, and give you a small number of profits. So the transaction sizes and limits are lower.
Another great option for beginners is using zero accounts. This is a type of trading account where the difference between the bid and ask price is zero. Also, spreads are close to zero. There are different brokers which suggest zero accounts such as Tickmill or IC markets, but the special and most widely used is XM zero account.
For example, according to the XM Ultra Low account review, spreads are as low as 0.6 pips. There are 6 currencies available for trading and leverage is up to 1:1000. With the negative balance protection and 5 USD required minimum deposit amount, you can start trading on the massive FX market. XM also suggests great alternatives with micro and standard trading accounts. Additionally, there are available massive guides for beginners, as well as experienced traders for a better trading experience.
Brokers are focused on making FX trading available to everyone. This is why the idea of an Islamic account appeared. Forex Islamic accounts are swap-free accounts. This means that if you open this type of account, you will not be able to use rollover interest on overnight trading. It is against to Muslim faith because of sharia law.
So, swap-free accounts make trading comfortable for Muslim traders. Other features of the trading account remain the same. For XM users, swap-free trading is available for different account types, including, micro, standard, ultra-low, and shares accounts.
More specifically, these accounts including the protection of sharia laws suggest you trade with diverse currency pairs. In total there are more than 55 currency pairs available for trading. It does not only include the major but minor currencies, such as ZAR, SGD, PPLN, RUB, HUF, and others. Also, CFD and major indices are available for everyone.
If you are interested in trading with commodities such as wheat, cocoa, or others, XM includes vast alternatives, from 600 global companies. Additionally, you can trade with gold, silver, or palladium which are very trendy at the moment.
These standard accounts are provided with negative balance protection. It is great for UK traders because they are required by the local regulations, to only trade with accounts with balance protection. None of these accounts include mandatory commission except the shares account.
Actually, a shares account is one that is quite different from the mentioned online trading accounts. There are no specified spreads and do not include any leverage. For example, if you open a shares account on XM, you will have a contract size with only a single share and the only available currency will be USD.
To conclude, a shared account is not great for beginners, because it requires different trading tactics. On the other hand, standard accounts can be a good option for beginners, because the main features are the same. The only thing that changes is required deposits and leverage levels.