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MasterForex Broker - About an anguish in choosing a type of account

Discussion in 'Company Articles' started by MasterForex Broker, Jun 12, 2012.

  1. MasterForex Broker

    MasterForex Broker MasterForex.org Representative

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    Dear traders, today I’d like to speak about choosing a type of account. As we know, dealers offer several types of accounts. Different brokers have different conditions, but there are some similarities. For example, ECN accounts. But let’s begin from the start.

    Let’s begin with the most budget accounts – cent ones. What are cent accounts?


    Cent account is an analogue of standard account with one big difference: cent account assumes bigger fragmentation of lots and the deposit currency itself. These accounts are used mostly by the beginners. They are convenient, because the trading is under the same rules as with common accounts, but profit and risks are 10 times lower. If trader feels himself confident, trading on demo account, he can try trading on micro account. In this case trader will face with the main problem of trading – emotions. These accounts are interim between demo and standard accounts. Fear and passion are anyway present while trading real money. Moreover, it’s easier to accept first losses realizing that you could lose 10 times more. Few traders became successful immediately, and there is no such a trader who didn’t lose at all.

    Standard account is a common account. But it’s not so easy. To understand its peculiarities, It’s better to consider in parallel ECN account. Standard account is an account of conservative traders. There is no minimal sum of deposit; in case when the price changed by the time the dealer got an order, investor will get a requote, that means that dealer asks, if trader approves an order with new price. As a rule, such accounts are used for positional trading and hardly appropriate to scalping. Moreover, most of the brokers have fixed spreads on standard accounts. That also gives some additional safety to traders in the moments, when the market is too active and jump of the size of spread can occur; or, in opposite, when the market is too slow and the difference between demand price and supply price is quite big.

    ECN account. As a rule such accounts are opened by experienced traders. These accounts have minimal sum of deposit and there are now requotes. Advantage of this type is that you can trade on news during active market. However, such accounts don’t have fixed spreads, they are regulated by the market. Also the distinctive feature of ECN accounts is glass of applications. Here we should remember that the basis of oscillations is pending orders. Most market movers has their own ideas of the prices, which they are interested in, often regardless of the profitability of the price for the transaction. In this case, pending orders constitute a glass of applications for the sale or purchase. Traders who are in the market at current prices can buy currency at the best price sale, which is represented on the market. The same is with the selling.

    Everyone has an opportunity to choose an account he wants. Those traders who need to make a quick deal better choose ECN account. Those investors who prefer to have long termed positions, can open a standard account. Beginners better start with cent account. Trade with the trend and good profits to you!

    Author Karen Galegov

    Article link http://blog.masterforex.org/?p=727&lang=en
     

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