In a Cent Forex account, the balance is measured in cents; for instance, when you deposit $20 in your cent account, your balance will appear as 2,000 cents.
This type of account is suitable for new traders with small budgets who want to practice their trading strategies in a real market with minimal risk. The cent account comes with different trading conditions compared to other types of accounts. The most noticeable feature of a cent account is that your balance will always be shown in cents.
You can fund a forex cent account with as little as $1 (100 cents) or $5 (500 cents) to trade in Forex, Metals, and more. Below you can find a list of Cent Forex brokers.
If you are a new and inexperienced trader, a Cent Forex account may be exactly what you need for your trades. Keep reading for more details as to why:
👌 1. Very Low Deposit
Forex Cent accounts are measured in cent units; therefore, they require very low deposits. Some brokers allow deposits as low as $1.
It is better, however, to deposit a little more than the required minimum to have a few extra units in your account as a security deposit, in case the price fluctuation of the forex market did not go as well as you had hoped.
👌 2. Minimum Possible Lot Size
The Forex cent account enables you to trade in the lowest possible lot sizes. Bear in mind that some trading platforms, such as MT4, do not allow trade volumes less than a 0.01 standard lot. This means that traders can only trade a minimum of 1,000 units or $1,000 in a standard USD account.
Forex cent account holders can reduce their trading volume to just 10 units of currency. For example, 0.01 standard lots in a USD account is the equivalent of 1,000 currency units or $1,000, while in a cent account, 0.01 of a standard lot is 1000 cents or only $10.
This is very practical, especially for new traders, since they get to practice trading with smaller lot sizes using very little money.
👌 3. Minimal Risk
By using a cent account, you can start trading with a live forex account with a low balance and the lowest possible lot sizes.
New traders would benefit from a cent account because by using the lowest lot sizes they would expose themselves to lower levels of risk. If you can't afford to lose a lot of money in the learning process, then a forex cent account is perfect for you.
👌 4. Perfect Transition for New Traders
Not every forex trader can make it in the Forex world, because it requires a lot of time and practice. The forex cent account acts as the perfect transition between a demo and a live account. After the new traders are done practicing with a demo account, they need to move on to a real trading account.
With a cent account, you will be able to experience live trading with real money. In this way, you will learn about your limits, how to deal with your losses and the best trading styles for you. In addition, as a beginner, you may consider trading with a forex micro account where you can trade using micro (mini) lots.
