In this article, we will talk about some of the different types of accounts that forex brokers offer, and while doing so, we will also take a look at how these brokerage firms operate. Trading online is tedious and requires a lot of work, we suggest you find the best forex broker to help you with these finances.
In other words, it will be an extensive review of the operations and services provided by several online trading platforms for us to determine whether or not they meet our standards.
Types of accounts
There are two main types of accounts offered by most Forex brokers; Standard Accounts and ECN/STP Accounts. While standard accounts are more commonly used because they usually have lower spreads and tighter leverage than ECN/STP Accounts, there is still an extremely large portion of traders who prefer using them for their higher liquidity levels and faster execution speeds. In other words, ECN/STP Accounts are designed for professional traders who have experience in the financial markets and who can deal with all kinds of risks.
Minimum deposit times & Minimum deposits
In addition to these two main types of Forex accounts offered by brokerage firms, there is also another variant that we should mention here: micro-accounts. If you look up the term ‘micro account’ on Google, then you will find out that it refers to an account that has a very low minimum deposit requirement (usually less than $50) and which usually requires only one or two small trades for you to be eligible for withdrawal or pay out. Of course, this type of account does not offer much when it comes to leverage or spreads, but it is usually a great choice for beginners.
And now, let us talk about minimum deposit requirements because they are quite important when choosing the right broker to work with. In fact, the minimum amount that you can deposit on an account may differ from one brokerage firm to another, depending on its policies and procedures. Still, there is one thing that is certain: no matter what your budget might be like, there will always be at least one platform that you can use to start trading currencies online.
While most traders tend to focus their attention on the maximum leverage limits of different platforms or the spreads within the attached MT4 trading platform, many disregards clearing times and withdrawal timeframes even though they are extremely important. On the one hand, some firms might offer the most competitive spreads on the market, but you will not be able to use your account if it has long waiting periods or high fees associated with withdrawals.
Account balance protection options
Brokerage firms usually offer several different types of coverage that can protect your deposit from drops in value caused by market volatility over time. This type of facility is particularly useful for traders because they always want to make sure that their accounts are protected against sudden changes in currency prices, which may take place throughout the day. The most popular balance protection options available today include margined accounts, forex trading platforms, and other account-oriented services.