Standard Forex Account
- Published: Friday, 20 July 2018 17:14
- Written by Super User
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Standard Forex Account
Trading in the foreign exchange market involves the purchase and sale of the currencies of the
World. This is one of the most liquid markets in the World. Forex trading is unique because here
an individual investor can compete with large hedge funds and banks. To do this, you just need
to open the correct account.
Among all the account types, available for today, there can be highlighted 3 main - standard,
managed and mini-account. The final choice depends on the trader's tolerance to risk, the size of
the initial investment and the amount of time that will be spent on trading every day.
Standard Trading Account
The most popular type of account is a standard trading account. The name was given to it due to
the fact that with its help the trader gets access to standard lots, each of which is equal to 100,000
dollars. However, does not mean that for the trades the trader needs an initial capital of $
100,000. Margin and leverage (forex usually 100: 1) allow you to reduce investments to $ 1,000
on the margin account.
This is already a full-fledged real account, and it will suit those traders who have gained trading
experience and have a proven profitable strategy. This type of account requires a larger
investment in the deposit. The deposit currency can be different. In most cases, the broker
provides an opportunity to replenish it in dollars or euros, sometimes in rubles. A standard or
classic trading account usually has a minimum deposit limit. As a rule, we are talking about
several hundred dollars. Replenishment of the account for this amount can afford many traders.
Main features of the account
Like any other type of account, this has its advantages and disadvantages:
Standard Forex Account – PaxForex is the most common type of trading account. In most
brokers, this type of account has a fixed spread. For a novice trader, this is very good, because
you can easily calculate the final goals.
Advantages of the standard account:
- stable and high earnings with skilful trading binary options;
- fixed spread;
- suitable for all types of trading.
Of course, there are some minuses, which must also be taken into consideration. The main minus
of this type of the account is frequent inhibition in the execution of transactions, which greatly
irritates aggressive scalpers. Therefore, this account should be opened to those people who are
not aggressive trading or who work exclusively on daily charts. Sometimes a classic account can
be used to trade with a trendy forex robot. So, this offer is not suitable for those who are just
starting to trade - the risk of losing significant amounts is too high. Also it should be pointed out,
that it is not suitable for testing new strategies.
Benefits from PaxForex
PaxForex provides additional services and bonuses to individual investors who have opened this
type of account, since for the trade in full lots standard account holders need corresponding
Trading on a standard account is possible using a variety of tools: metals, currency pairs, CFD
contracts. The value of the leverage also depends on the conditions of the broker; it varies in the
range from 1:1 to 1:1000. The larger the shoulder, the more positions you can open. However, it
must be understood that this also seriously increases the risks.
Standart accounts are suitable for experienced traders who have effective TS and earn a stable
profit in the market. No big surprise that this forex account is the most popular among traders.