Forex Mini Demo - Mini Forex Trading Or a Forex Demo Account

Forex Mini Demo

If you want to start forex trading you will probably be looking at a forex demo account. But have you considered a mini forex trading account? Could it have advantages over the demo?

What Is Mini Forex Trading?

A mini trading account gives you the chance to trade with real money in small amounts so you can work with just a small starting fund. With most brokers, the lot size of a mini trading account will be just one-tenth of the lot size for a standard account, so you are risking a lot less.

The 3 Options For Beginner Forex Traders

1. Jump straight in with live trading through a standard brokerage account. You will need to invest between $1,000 and $5,000. This would be very risky for a beginner. Do not try this unless you already have a lot of experience in similar trading environments e.g. stock trading. Forex Mini Demo

2. Start live trading with real money but use a mini forex trading account. Most brokers ask for a minimum investment of $250. You may find brokers who will let you set up with even less, but frankly if you do not have $250 to spare then you probably should not be trading.

3. Use a demo account to start. Here you can pick up trading skills without using any real money. The idea is that you will switch over to live trading (either with a mini account or a standard account) when you are making consistent profits in the demo account.

So Which Is Best: Mini Forex Trading Or A Forex Demo Account?

Most beginners choose option 3, the forex demo, because they feel safer using ‘pretend money’ to trade online for a while first. It also gives them the chance to try out different systems and strategies.

The problem with this is that if you keep switching from one system to another in a demo, you will never learn how to stick to one system consistently. The fact that it is not real money can also give you a false sense of security. Using a demo account may encourage you to take risks that would make you uncomfortable in the real market. Forex Mini Demo

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