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When you are choosing a broker for trading, there are of course many elements that you have to consider.
Among these is the best forex trading platform. Also though, you have to give a lot of consideration to the size of trading you would like to do.
Trading standard lot sizes may not meet the needs of everyone. You may want to try micro trading, or even nano trading. For that reason, we have compiled this dedicated collection of information to help you choose the very best nano lot size forex broker possible.
Table of contents
Round-up of the best forex brokers with nano lots
- Oanda: best forex broker with nano lots overall
- XM: best for low commission nano lots trading
- FxOpen: best for nano lot copy trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
What is a Nano lot in Forex Trading?
This is more common question among forex traders than some may expect. You may have heard of nano trading, but what is it exactly?
Nano trading is still very much forex trading, just with a trading size that is a fraction of that of standard trading. In fact, a nano trading lot is equal to 1/1000 of a standard lot. So, where a standard lot (non-leveraged) requires $100,000 to trade, for forex brokers with nano lot size, you will need just $100.
This amount can go even lower on some occasions depending on the broker. Some will make forex nano trading available for as little as $10. With that taken into account then, it is easy to understand how some in forex trading can be confused on exactly what nano trading is. We can safely say though that if the size is at least 1/1000 of a standard lot, it can be considered nano trading.
Micro trading on the other hand is 1/100 or 0.01 of a standard lot. Both types of forex trading are perfectly ideal for those starting out in the industry who wish to closely manage their trading risks.
Top 3 Brokers to Choose for Nano Lots Trading
Due to the fact that micro trading lots are just 0.01 of a standard lot which is typically small enough to manage trading risk for most, it can be a challenge to find brokers that facilitate opening trades for a nano lot. The following forex brokers that we have listed though do:
Pros and Cons of Nano lot trading
As with all forms of trading and everything in life, there are both pros and cons to nano lot trading. Here we have compiled a few of the most common:
- The risks involved are kept very low thanks to the low trading volumes and deposits that are facilitated.
- Many of the micro and nano lot trading forex brokers also facilitate a no or low minimum deposit and often apply no deposit fees to your funds at all.
- Nano lot trading can be the ideal place for new traders to start out with the minimal amount of risk, but still opportunity to profit from forex trading.
- Along with the low risks, some traders amy feel that the rewards from nano trading can be similarly low.
- The asset availability from some brokers may be more limited when you are trading nano lots.
Mini Lot, Micro Lot, Nano Lot: what’s the difference?
As you may have experienced, there is a lot of variety in the forex trading sector when it comes to lot sizes. This does give you the flexibility as a forex trader to choose an amount of money to invest that suits you and also to maintain a good level of risk management in trading.
The lot sizes available are usually as follows:
Standard Lots – There are the most widely available and base type of lot usually traded with forex brokers. These standard lots are equal to $100,000 (100,000 units of base currency).
Mini Lots – The value of these is 1/10 that of a standard lot or $10,000 (10,000 units of base currency).
Micro Lots – The value of these is 1/100 of a standard lot or $1000 (1000 units of base currency).
Nano Lots – The value of these is 1/1000 of a standard lot or less. $100 or less (100 units of base currency or less).
Cent accounts, although they often include the trading of micro and nano lots, are a slightly different account type. These are also available within the offering of some forex brokers.
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