Forex brokers offer a wide range of Forex trading account types. Here is a list of all the main types:

  • Demo Forex account
  • Standard Forex account
  • Mini-Micro Forex account
  • Nano Forex account
  • Cent Forex account
  • Raw spread Forex account
  • Fixed spread Forex account
  • Copy Trading account
  • Managed Forex account
  • Islamic Forex account
  • Vip Forex account
  • Professional Forex account
  • Corporate Forex account

Each brokerage account on this list offers special functions and features, which can greatly alter the trading experience. It is therefore necessary to know them thoroughly in order to make the right choice.

Table of Content

Demo Forex account

A Forex demo account is an account that simulates a real trading environment, allowing users to practice trading with virtual currency without financial risks.

The experience in a Forex demo account mirrors actual trading conditions, but without the financial stakes, since all transactions are virtual. This feature is vital for gaining practical experience in market analysis, order execution, and risk management.

Demo accounts stand out for their ease of access; they are typically free and can be opened swiftly using just an email and password.

eToro sets a high standard in the Forex brokerage community for offering demo accounts, providing an excellent platform for beginners to practice and learn trading in a risk-free environment.

Standard Forex account

The standard Forex account is a basic account that allows you to use all the different services offered by Forex brokerages.

This is a very common Forex trading account type, and it’s offered by almost every broker in the industry.

The average minimum deposit for this account type is $100, and spreads are often around 1 pip.

Generally, brokers with this type of account act primarily as Forex market makers.

XM is a standout example in the Forex brokerage industry for offering standard accounts, combining user-friendly platforms with flexible trading conditions suitable for a wide range of traders.

Mini-Micro Forex account

A mini or micro Forex account is a low minimum deposit trading account that also enables traders to open Forex trades with micro lots.

However, Forex brokers often use the term “mini-micro Forex account” differently, leading to variations in its definition. While some brokers label an account with a small minimum deposit (usually below $100) as a “mini account” or “micro account,” others may use the term to describe an account whose base lot size is set to 1 micro lot.

This variation means that the exact characteristics of a micro account can differ significantly between brokers, making it important for traders to understand the specific terms and conditions offered by each broker under their definition of a “micro account.”

XM stands out as an exemplary Forex broker for offering micro accounts, providing traders with the opportunity to engage in the market with low capital requirements, a smaller lot size and comprehensive support.

Nano Forex account

A nano Forex account is a type of trading account that allows traders to open positions with as little as 1 nano lot (i.e. 0.0001 standard lots), catering to beginners or those with limited capital.

These accounts typically have a very low minimum deposit requirement, often below $10, making them accessible to a wide range of traders. However, they usually come with spreads above 1 pip, even for major Forex pairs, indicating higher trading costs relative to standard accounts.

Additionally, a nano Forex account often offers a smaller range of tradable assets, which can limit trading options but also simplify choices for new traders.

Overall, this type of account can also be very useful for those who want to test EAs and Automated Forex Trading Robots on a real account, but without risking losing too much money.

RoboForex is a notable example in the Forex brokerage field for offering nano accounts, providing an accessible and flexible trading platform ideal for traders looking to manage smaller balances.

Cent Forex account

A cent Forex account is a type of trading account where the balance is displayed in cents instead of normal dollars (or other chosen base currencies), allowing traders to trade with smaller amounts of money. This account type is particularly useful for beginners transitioning from demo to real accounts, offering a more gradual learning curve.

For example, a $10 deposit appears as 1000 cents in the account. This feature is beneficial for those learning to trade or testing new strategies without risking substantial capital.

The initial deposit for a cent account is typically under $5 (or 500 cents), making it highly accessible for beginners or those with limited funds.

In a Forex cent account, positions can be opened in nano lots, offering even more precise control over the trade size than mini or micro lots.

However, this flexibility comes with the trade-off of having very high spreads (often around 2 pips even on major Forex pairs).

FBS stands out in the Forex brokerage arena for offering cent accounts, making it a go-to choice for traders seeking to start small while gaining access to robust trading tools and services.

Raw spread Forex account

A raw spread Forex account is a trading account where the spreads start from 0 pips.

The Forex broker receives price quotes from various liquidity providers and aggregates them to form the best possible spread to offer its clients, sometimes even zero.

Forex brokers offering this account type do not make money from the spread, but rather charge a separate commission fee based on the volume traded. This fee usually ranges around $7 per every lot traded.

This account type is often marketed as an “ECN account“, and typically requires a higher minimum deposit, often over $200.

This type of account is favoured for its apparent transparency and closer reflection of the underlying market, making it a preferred choice for traders focused on short-term strategies and frequent trading.

Pepperstone excels as a leading example among Forex brokers for offering raw spread accounts, providing traders with direct access to market prices and ultra-competitive spreads.

Fixed spread Forex account

A fixed spread Forex account is a type of trading account offered by some Forex brokers where the spread remains constant and does not fluctuate with market conditions. This means that traders know in advance the cost of each trade, providing predictability and transparency in trading costs.

Brokers that offer a fixed spread account are market makers, and to keep them fixed they are forced to apply large mark-ups: if with a standard Forex trading account the mark-up is as low as 1 pip, with fixed spread accounts it can be as high as 3 pips depending on the broker.

A fixed spread account is especially beneficial in volatile market conditions where variable spreads can widen significantly. This account is sometimes preferred by traders who use specific trading strategies, such as scalping or automated trading systems, where consistent spread pricing is crucial.

AvaTrade is a prime example among Forex brokers for offering fixed spread accounts, consistently delivering transparent pricing and stable trading conditions to its clients.

Copy Trading account

With a copy trading account you can copy the performance of more experienced traders.

Copying occurs automatically, due to the fact that the trading platform is able to buy and sell in real time the assets that the trader you are copying trades.

Generally, a copy trading account do not charge additional fees compared to other accounts.

Copy trading accounts can be useful for all those people who do not want to trade themselves, but still want to keep control of their money allocation.

eToro distinguishes itself as a standout Forex broker for copy trading accounts, offering an intuitive platform that seamlessly integrates social trading features with reliable investment opportunities.

Managed Forex account

A managed Forex account is a type of service similar to copy trading, but where the money is entrusted to a single trader, and the user has no control over it other than in deposits and withdrawals.

Forex transactions are decided by the managing trader, but ownership of the account always remains with the investing trader, who may decide to discontinue it.

Depending on the type of managed Forex account (MAM, PAMM, LAMM, or RAMM), users will receive compensation based on performance.

The deposit required to open the account and the spreads vary depending on the Forex trading account selected by the account manager and users.

FP Markets serves as an exemplary model among Forex brokers for offering managed accounts, showcasing a commitment to reliable and sophisticated trading solutions tailored to investor needs.

Islamic Forex account

Islamic Forex accounts are accounts dedicated to traders of the Islamic faith who want to comply with the dictates of Sharia law.

Islamic accounts do not have rollover fees, which are interest and therefore prohibited in Shariah.

An Islamic Forex account may charge additional fees in lieu of a rollover commission.

The minimum investment to get started, as well as the spreads, vary depending on the type of account selected by the trader.

In other words, a broker’s ECN account can be transformed into an Islamic ECN type with the same trading features.

XM stands out as a leading example among Forex brokers for offering Islamic accounts, demonstrating a deep understanding and accommodation of Sharia-compliant trading practices.

Vip Forex account

A VIP Forex account is a specialized trading account designed for high-volume traders, offering enhanced trading conditions and exclusive services.

VIP accounts are characterized by a very high minimum deposit (often above $10.000), with the trade-off of having smaller spreads and premium services, such as direct access to market analysts and dedicated account managers.

This account type ensures personalized support and expert insights for traders who want to trade with high amounts of money, offering a more tailored and efficient trading experience. However, this account type is not common to find among Forex brokers.

Saxo Bank sets a benchmark in the Forex brokerage industry for VIP accounts, offering an unparalleled blend of exclusive services, advanced trading technologies, and exceptional customer support.

Professional Forex account

Professional Forex accounts are available in areas and countries where less experienced traders are protected by local regulations.

In Europe, Australia, and the United Kingdom, less experienced traders have leverage up to 1:30, but if they classify themselves as professionals, leverage increases to as much as 1:400.

A professional Forex account gives traders access to high-risk assets such as certain types of options, and can receive benefits such as rebates.

At the same time, some protections dedicated to the less experienced such as Negative Balance Protection (NBP) may be lifted.

Pepperstone epitomizes excellence in the Forex brokerage landscape, providing professional accounts with cutting-edge trading tools and exceptional support, setting a high standard for the industry.

Corporate Forex account

Corporate Forex accounts are accounts dedicated to companies, small businesses, joint groups and other personas that need to invest and trade with their business money.

Companies can open a corporate Forex account for a variety of reasons, but the main ones are to reinvest the company’s money, to protect against inflation, or to protect against foreign exchange risk if the business has a multi-currency bank account.

With a corporate account, the broker will very often give you access to exclusive services such as direct contact with the analyst team.

Interactive Brokers stands as a prime example of a Forex broker that excels in offering corporate accounts, combining robust trading platforms with comprehensive services tailored for business needs.

How do Forex trading account types compare to each other?

Here below you can find a comparison table featuring the most common account types to be found at different Forex brokerage firms:

Account Type Risk free Min. Deposit Min. Trading Size Avg Spread Volume-based Fee
Demo Yes Free Mirrors real conditions Mirrors real conditions No
Standard No ~ 100 USD 0.01 lots ~ 1 No
Micro No < 100 USD 0.01 lots ~ 1 No
Nano No < 10 USD 0.0001 lots > 1 No
Cent No < 5 USD 0.0001 lots ~ 2 No
Raw spread No > 200 USD 0.01 lots ~ 0 Yes

Demo vs Real account

The difference between Forex demo accounts and real accounts is that demo accounts offer a simulated trading experience using virtual funds, whereas real accounts involve actual financial transactions with real money.

Since demo accounts rely on virtual funds, they cannot portray real-market conditions like slippage (i.e. the small difference between the expected price of a trade and the actual price at which the trade is executed) or requotes (a broker’s request to execute a trade at a worse price than that requested).

With demo accounts, traders can practice with real-time data, use various analytical tools, and familiarize themselves with the trading environment. However, demo accounts can’t replicate the psychological pressures of real trading, where actual capital is at risk.

Micro vs Standard account

Micro and standard accounts are quite similar, however the main difference between them is that Micro accounts usually have a lower minimum deposit than standard accounts.

In fact, if standard accounts are designed to provide a conventional trading experience within the broker, micro accounts are designed for smaller-scale trading, featuring low minimum deposits, often below $100, and usually higher leverage (where legally allowed) to allow traders to open trades with smaller amounts of money.

Nano vs Cent account

Nano and cent accounts both facilitate very low minimum deposits and transactions with nano lots (equivalent to 0.0001 standard lots).

However, the key distinction lies in how they denote account balances and transactions.

While Nano accounts directly reflect balances in the deposited currency, such as showing $10 for a $10 deposit, Cent accounts represent account balances and transactions in cents. For instance, if you deposit $10 in a Cent account, the account balance will be displayed as 1000 cents.

This conversion makes smaller deposits appear larger, offering a trading experience that simulates the dynamics of an account with a higher balance.

Islamic vs Standard account

Islamic Forex trading accounts differ fundamentally from standard Forex trading accounts primarily due to the absence of swap fees.

In standard accounts, swap fees are charged when a position is held open overnight, reflecting the interest that could be earned or paid in the process. However, in Islamic accounts, these swap fees are eliminated to comply with Sharia law, which prohibits the payment or receipt of interest (Riba)

Since brokers cannot earn from overnight positions, they might impose higher spreads to maintain their profitability, which makes Islamic accounts less cost-efficient than standard accounts.

Moreover, Islamic accounts might have a more limited range of assets available for trading compared to standard accounts, as some financial instruments may not be compliant with Sharia law.

Why are there different types of Forex trading accounts?

Brokers offer different types of Forex accounts to accommodate the diverse financial capabilities and trading strategies of their clients.

That is the reason why many Forex brokers often have these 5 account types on their offering:

  • Demo account: for new traders willing to test everything
  • Standard account: for traders who want to open their first trading account
  • Raw account: for scalpers and algo traders
  • Micro or Nano or Cent account: for low budget traders willing to start trading with real money
  • Professional account: for expert traders
  • Islamic account: for traders who want to comply with Sharia law

The extensive variety of account types is designed to accommodate a diverse range of traders, providing clients with the flexibility to choose the account that best suits their individual needs and preferences.

What is the difference between Forex trading account types and Forex broker types?

Understanding the difference between “Forex broker types” and “Forex account types” is crucial for anyone involved in foreign exchange trading. While these classifications sometimes overlap, they refer to distinct aspects of a Forex trading environment.

Forex broker types refer to the nature and operational model of the brokerage firm. This classification usually includes the different execution methods they use, whether they are A-book or B-book brokers, their regulatory status, and their business model (B2B or B2C). Each type of broker offers a unique trading environment, level of market access, cost structure, and level of risk.

On the other hand, account types pertain to the specific trading accounts offered by brokers to individual traders. These accounts vary in terms of trading conditions such as minimum deposit requirements, leverage, spreads, commissions, and available trading instruments. Each account type is designed to cater to different trader profiles based on their experience, trading style, and investment size.

Confusion may simply arise from the fact that brokers or industry experts use different terms to refer to the same thing, and that different Forex brokers, having a wide range of accounts, products and services, use specific terms at their convenience.

Does the type of Forex trading account affect costs?

Forex trading costs change across different account types, each featuring distinct pricing structures on spreads, commissions, and swap fees.

For instance, cent accounts typically impose higher spreads in comparison to standard accounts. This pricing model is tailored to accommodate smaller budgets and mitigate risk.

Conversely, raw spread accounts do not charge mark-ups on spreads but involve fixed commission costs based on the trader’s generated trading volumes.

Swap fees are a common charge across most accounts in Forex brokers. However, there are specialized swap-free account types designed for Islamic traders, omitting this fee and substituting it with alternative charges causing wider spreads or higher overall fees.

Does the type of Forex trading account affect the minimum deposit?

The minimum deposit required in Forex trading may vary depending on the broker and on the account type chosen by the trader.

The Forex market does not have a standard entry barrier to open a Forex trading account, but it’s all up to the Forex broker.

The same account type may require a different minimum deposit depending on the Forex broker. However, generally speaking, there are some similarities across different account types.

For instance, cent or nano accounts generally require deposits below $10, while other accounts often demand higher deposits, typically above $200.

Does the type of Forex trading account affect trade size?

The type of account significantly influences Forex trade size.

For example, cent and nano accounts allow nano lot trades, whereas other account types typically require a minimum of one micro lot to open a trade.

In other words, with a 1:10 leverage in a nano account, a trader needs just $1 as margin to open a 1 nano lot Forex trade.

This contrasts with standard accounts, where typically a minimum of $100 margin is required to open a trade of 1 micro lot with the same leverage.

Does the type of Forex trading account affect leverage and margin?

Leverage in Forex trading varies with the account type.

For instance, low minimum deposit accounts like nano or micro accounts often provide higher leverage (where this is allowed), enabling traders to open substantial positions with less capital.

Another clear example are Forex professional accounts that cater to advanced traders with high leverage options, reflecting their experience and larger capital base.

However, this may not always be the case. In fact, regulations in regions like the EU, UK, and Australia cap leverage at 1:30 for retail traders to mitigate risk. These regulations aim to protect less experienced traders from the pitfalls of excessive leverage.

Does the type of Forex trading account affect order execution?

The type of account can have an indirect yet significant impact on Forex orders execution, and this is often not explicitly stated by brokers. This influence is particularly noticeable in how brokers manage accounts based on the size of the deposit, specifically in the distinction between A-book and B-book handling.

The type of account, particularly those defined by the size of the deposit, can subtly influence how orders are executed. It’s common in the industry for accounts with smaller deposits, often referred to as micro or mini accounts, to be managed as B-book. This is because smaller accounts are usually associated with less experienced traders, who might not trade as profitably or consistently as larger, more experienced investors. By managing these smaller accounts as B-book, brokers might aim to mitigate the financial risks associated with these less experienced traders.

Larger deposit accounts, such as standard or professional accounts, are more likely to be A-booked. These accounts are usually held by more experienced traders, who expect, and often receive, a different level of service, including direct market access, tighter spreads, and more transparent execution.

This differentiation in order execution based on account type is rarely declared openly by brokers but is a well-known aspect within the Forex trading community.

What is the most popular type of Forex trading account?

The most popular Forex account types are demo and standard accounts, widely used for their distinct purposes.

Demo accounts, offering a risk-free environment, are ideal for beginners to practice trading strategies without real money. Standard accounts, on the other hand, are preferred by a broader range of traders for trading with real money.

What is the best type of Forex trading account for beginners?

The most popular account type for beginners in Forex trading is the demo account, which allows them to practice trading with virtual money and gain experience without financial risk.

Other beginner-friendly Forex accounts, that are not as popular as the demo account, include nano and cent accounts. These account types allow trading in smaller lot sizes, reducing the financial commitment and risk involved.

This approach is crucial for beginners, as it offers a safe environment to learn and make mistakes, which is an integral part of the learning process in Forex trading.

What is the best type of Forex trading account for professionals?

The most popular account type for professional Forex traders is the professional account, which typically offer higher leverage than other accounts and more favorable trading conditions, such as lower spreads or advanced analysis tools.

However, expert traders also frequently opt for raw spread accounts, which offer spreads close to the market’s natural rates. These accounts are appreciated for their transparency in pricing and lower overall trading costs, making them another popular option for professional Forex traders.

How to choose the best type of Forex trading account?

To choose the best account for Forex trading, consider your capital and the leverage available from the broker, then align these with your trading style.

With higher leverage, even with a modest initial capital, you can begin to implement more complex strategies and have more room for money and risk management strategies even using a standard account, as less margin is required to open positions. However, in regions like the EU, where leverage is capped at a maximum of 30:1, traders with limited capital are often compelled to trade with lot sizes smaller than micro if they want to manage risks effectively.

The next step is usually to evaluate your trading strategy. This includes determining the type of execution you prefer, whether you need a broker with fast execution for short-term trading or if you’re more interested in long-term or copy trading strategies.

Additionally, the choice between variable or fixed spreads is crucial. Variable spreads can be tighter under normal market conditions but may widen during volatility, whereas fixed spreads provide consistency in trading costs.

These factors, combined with other preferences like trading platforms, tools offered, and customer support, play a significant role in selecting the most suitable account for your trading objectives.

Do Forex brokers offer multiple trading accounts?

Forex brokers on average provide a range of 3 to 5 different account types to cater to different trader needs.

These accounts often span from demo accounts for beginners to more specialized options like professional and raw spread accounts, each tailored to specific trading strategies and requirements.

However, the availability of one or the other account type depends ultimately on the Forex broker of choice, as each brokerage firm has its own policies and offerings regarding Forex account types. Usually, the top Forex brokers in the industry offer more account types.

Can I switch between Forex trading account types later on?

Usually, a Forex broker requires a unique registration from the user, which applies to all types of accounts that the user can then open.

Once the registration is done and all documents are provided, many brokers allow the opening and use of all available account types. In many cases, funds are deposited on a general wallet and can be split or moved between the various accounts opened.

How to open a Forex trading account?

To open a Forex account, you start by selecting a reputable Forex broker that aligns with your trading needs and regulatory requirements.

You’ll need to provide personal information, including identification and proof of residence, to comply with financial regulations.

This is followed by completing an online application form on the broker’s website.

After your application is approved, you deposit funds into your account using one of the payment methods offered by the broker.

Finally, you can access or download the trading platform provided by the broker and start trading.


filippo ucchino

About The Author

Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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