If you are still new in forex trading, a mini trading account may be the best option for you. Sure, it is not advisable to test the depth of water with both feet. What if you get drowned? Deeping one foot may be better as you may get off the water with much ease.
A mini forex trading account allows you to get used and familiar with the FX Market before you can dive in for the real meat. The lot of a mini trading account is just a tenth of that of a standard or regular foreign exchange account.
Foreign Exchange trading firms offer these mini forex trading accounts to allow beginners and small investors to try their lucky on the foreign exchange market. As a beginner you are not yet so good in following the trend of the FX market and you need something mild so that when you make a loss, it will be such that your indulgence will not make you bulge. It will be just a small less painful loss.
I need to emphasize that whilst it is true that a mini foreign exchange account is good for those with a small budget, it is also a wise idea to start with such even if you have a fat pocket. The main idea here is that you minimize losses because your fat pocket may grow thin if you make big losses.
Many firms in foreign currency trading offer the beginner an option to learn with a demo account. This will be idle to get feel of the trade with fake money before dealing with real money. Most of the mini forex trading accounts will allow you to start with as little as $250 or even less and this is just good for a beginner.
Source by Paul Kramer