Usually, everyone talks about the need to choose the correct trading medium, especially if it is related to foreign exchange trading. This is certainly true, your choice of mediator is vital. But the most important is to choose the optimal account type that suits you. In this article, take a look at the main reason for the trade-off between trading accounts, their common types, and the key elements to consider when selecting an account type.
Why is there a difference?
Typically, a trading broker prefers to design trading accounts in a certain way, so that major traders with larger capital accounts have access privileges for the best services. Think of it as if you were looking at the automotive industry. Where you can easily buy a Honda Civic for a good amount, but you can also buy a brand new Honda NSX for a larger amount. In both cases, you own and drive a Honda car, but the second model is likely to get you to your destination faster.
The same applies to Forex trading accounts. When you deposit $ 500 you can trade with Hydra APP Software trading broker, for example, XYZ. But deposit $ 10,000 or more with the same medium XYZ will give you better conditions, the most beautiful service and so on.
What types of trading accounts are there?
The diversity of the trading account group is due to the broker. There are companies that believe in the principle of “one size fits all”, and thus these intermediaries offer their clients only one type of account. There are also brokers who have 5 or more types of trading accounts they make within their bids. Below are the main types of trading accounts available.
They were very popular in the past but they are starting to fade at the moment. The main idea behind the Sent accounts is that deposits are calculated in US cents rather than in US dollars. In other words, calculating the cents with the $ 1,000 deposit level means that the person has deposited only $ 10.
There are two main objectives of these accounts – testing automated trading systems without incurring a lot of funds and a simple level up to a pilot account for beginners.
The main feature of the Sun accounts is simple – minimum deposit requirements are very low. Typically, these accounts do not come with additional benefits.
Trading Platform Accounts
It is not always possible for a broker to consolidate payment systems well so all available trading platforms extract the balance from a single book. This is why a trading broker often has trading platform accounts within his products.
The main advantage of these accounts is embodied in providing the required trading platform. It is therefore very normal to see some trading brokers who provide a certain account for the MetaTrader 5 platform. However, this is not a separate product, it is a work method.
Most brokers are still more keen to allow customers to trade on a single platform, which is why they offer additional bonuses, lower spreads or small commissions for this platform.
On the contrary, the trading broker may want to excel in a certain platform and make it accessible to professionals only. This is the case with most brokers putting in a minimum deposit of about $ 10,000 for accounts that come with certain privileges, usually in software.
Was as popular as the Hydra APP Software accounts, but it also faded away. Brokers are often provided by the shareholders of the market share in Russian and CIS countries VIP accounts. The main idea of this account was to provide various additional services. Which includes an account manager available 24 hours a day, 24 hours a day via a dedicated phone line, lowest spreads and commissions, personal analytics or even gifts for iPads and iPhones.
The broker often starts treating his clients as VIPs after deposits of $ 10,000- $ 50,000. However, most of the benefits of these calculations are not of great benefit to professional traders.
Often, the broker offers only the standard account. This account usually comes with a minimum deposit requirement and does not contain any additions. In simple words, these accounts are almost the same as the cents account but the deposits are measured only in dollars.
These calculations would normally come with an average view in terms of price and commission differences, immediate execution as well as a wide range of trading instruments.
Premium Accounts – Pro
These types of calculations are commonly used among intermediaries as well. The main idea behind Pro accounts is to offer fairly superior trading conditions, mostly on currency pairs. Typically, the broker orders market execution through NDD (ECN) systems for Pro accounts. Price differences tend to be lower and commissions are low if measured by regular accounts. However, access to these accounts is less. Where the minimum deposit is about $ 1,000.
Once you choose a trading broker, it is certainly a good idea to choose the right type of trading account. Ideally, you should look for accounts that come without any intervention from the dealing desk. Then, you decide how much money you’re willing to deposit, not all types of accounts are available to you. Finally, check the financial instruments you plan to trade and the terms of all types of accounts available.
How to Spot Forex Fraud
As the popularity of Forex trading increases, cheating professionals are also increasing in an attempt to capture any money from the FX Express. Since Forex involves trading money on an international scale, often on the Internet, good chains of fraud attempts are beginning to emerge. Ironically, many of these fraud artists can find their footprint in newspapers, television, and other print media.
While these fraudulent attempts can be easily monitored by experienced traders, new speculators find it difficult to distinguish between what is real and what is not. It is absolutely essential that you thoroughly look at everything related to Forex trading and which company you are likely to trade with before you deposit any investment money. The last thing you will need to know is if the company you invested in is subject to SEC investigation for fraudulent crimes. In such circumstances it will be impossible to recover your money from this company because the claims by people who have been scam like you will be much higher than the payments that the government can guarantee.
One of the ways to detect the attempts of a monument in Forex trading is when you hear someone announce a forex trading system that does not involve any risk. It is common axiom that risk is a close adjective of Forex trading, and generally no one can claim otherwise, otherwise it is a liar or rather a criminal. Successful Forex trading requires the availability of knowledge, discipline and a prudent strategy for trading but does not require a magical or risk-free program that can guarantee the profit of money in this area.
One of the red signals that will inevitably point to a fraud attempt in Forex is the sites that guarantee profits. No one can guarantee profits in Forex trading. It is up to you fully as an investor depending on your performance. If we talk logically, if we assume that there is a possibility to ensure profits in Forex trading, the person who claims it will not need to start any other business or even show its ability to ensure profits.
The potential for profit for anyone who claims to guarantee profits will be huge in the Forex market so he can turn into a billionaire through forex trading in a short time. So why bother him or waste his time teaching this to others?
One of the other common methods of cheating professionals in Forex is to offer and promise job opportunities for people who will use their trading systems. Hydra APP Software is usually a trick to convince you to spend your money with them. It’s all about catching people with their money so they spend it in this company. These companies usually offer promises that they will save the company’s money for trading by people who will use their trading system. But why should they do that? They try to lure people with the training systems they sell and then try to convince them that those who excel during the training period will be hired by the company and traded with their money, the truth that will enable them to achieve wealth in a short time.
All reputable Forex trading sites are often found in CFTC or NFA members. Make sure there are no claims on the company you will deal with and that they are members of one of these organizations before you consider dealing with them.
Since the FX market is relatively unorganized, in many cases Forex attempts are technically well prepared and may involve brokers manipulating prices through methods that can not be tracked by the average trader. For this you must be careful not to fall victim to such mediators.
In the United States, the CFTC is the federal agency authorized to regulate the work of Forex trading. If you suspect that you may have been the victim of a fraud, you may contact CFTC. This organization has the competence to conduct investigations into these matters and enforce the laws.