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Account Types

Different account types suit different trading styles and capital sizes. Choosing the right account can save you significant money in costs.

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Account Type Comparison

Account Type Min Deposit Spread Commission Best For
Standard $10-100 2-3 pips None Beginners, small accounts
Micro/Cent $1-10 2-3 pips None Learning with tiny lots
ECN/RAW $200-500 0.0-0.5 pips $3-7/lot Experienced, scalpers
STP $100-200 0.5-1.5 pips None Medium accounts
VIP/Pro $10,000+ 0.0-0.2 pips $1-3/lot Large accounts, institutions
Islamic/Swap-free Varies Normal None Muslim traders

Demo Account — Your Training Ground

A demo account uses virtual money but real market conditions. NEVER skip this step.
  • Practice order entry, modification and closure without risk
  • Test your strategy on demo for at least 1-3 months before going live
  • Match your demo lot size to what you plan to use on live — do not use oversized lots
  • Treat demo trades with the same seriousness as real money — emotions are the main difference
  • Some brokers offer unlimited demo time; others expire after 30-90 days

Pro Tip: Moving to live trading too quickly is one of the most common reasons beginners fail. Achieve at least 2-3 consecutive profitable months on demo before depositing real money.

Leverage and Margin

Leverage allows you to control large positions with small capital. It is a double-edged sword.
  • 1:100 leverage: control $10,000 with $100 in margin
  • Higher leverage = higher profits but ALSO higher losses
  • Regulated brokers typically cap leverage at 1:30 (EU) or 1:50 (US) for retail traders
  • Offshore brokers often offer 1:500 or 1:1000 — extremely dangerous for beginners
  • Start with lowest leverage available (1:10 or 1:20) until fully comfortable
  • Margin call: when your account equity falls below the required margin — positions auto-close
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Key Takeaways

  • Standard account: wider spreads, no commission
  • ECN/RAW: tight spreads + small commission
  • Demo account: practice without real money
  • Cent account: trade micro sizes, great for beginners
  • Swap-free (Islamic) for Muslim traders
  • PAMM accounts for managed trading
  • Paper trading on TradingView is completely free
  • Match account type to your lot size and strategy

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