Today, such a service as a cent account on Forex has become very common among Forex brokers who want to attract new traders and give them the opportunity to learn how to trade on real accounts and get relevant experience. For a long time, experts have been saying that demo accounts do not provide an opportunity to get the desired experience of real trading, and even those traders who have managed to learn how to trade on such accounts, when entering the real market, they immediately begin to incur losses. It is believed that the main problem lies precisely in the psychological component. Indeed, on a demo account there are no risks for losing real money, whereas real trading often prevents you from opening a number of positions and forces you to take hasty steps in case of loss of your own funds.
Should I open a cent account on Forex?
The question is whether to open a cent account on Forex, and what advantages does it give? To begin with, trading on such accounts can be conducted with a minimum starting capital. So, investments can be from one to ten dollars. In this case, the broker often provides greater leverage, allowing you to open positions with a large lot. Of course, such transactions are often not displayed on the real market, but are traded inside the broker’s kitchen, but this is understandable, since even a large gain in absolute terms will be minimal, and it is simply impossible to withdraw lots with this size to the international market. At the same time, serious brokers are trying to bring the trading conditions as close as possible to the natural ones, which allows the trader to get the desired experience.
What are the disadvantages of a cent account? One of the main ones among them is the absence of a proper psychological component in trade. Even for a beginner, one dollar often means nothing, so he is ready to risk such money. If we talk about a real account for hundreds or thousands of dollars, the level of psychological tension changes dramatically.
Reviews of cent accounts
If we talk about reviews about cent accounts, many experts note their advantages: – the opportunity to gain trading experience as close as possible to the natural one (except for the deposit amount); – a smooth transition from a demo account to real trading; – no need for serious investments.
Other reviews about cent accounts on Forex indicate that it is better to abandon this practice and go straight to real trading. But remember that if you choose this path, you will encounter the need to risk your capital, and the risks at the beginning of trading will be extremely great!