Forex Account

AAA

DEFINITION of 'Forex Account'

The type of account a forex trader opens with a retail forex broker. Forex accounts come in many forms, but the first that is opened is often the forex demo account.

INVESTOPEDIA EXPLAINS 'Forex Account'

After the trader has tried out demo accounts with a few different dealers, a funded account would be the next step. Mini accounts, full accounts and managed accounts are the most common types of funded accounts. Mini accounts are similar to full accounts except that currency is traded in lots of 10,000 rather than 100,000. This allows for lower mandatory initial deposits and greater customization of risk management.

Is is important for currency traders to consider what they want to get out of their accounts before deciding on the type to open. Demo accounts and mini accounts are great for the retail forex trader to learn a profitable system and get used to the broker's execution methods. For currency speculators who doesn't want to trade themselves, a managed account may be a better option.

RELATED TERMS
  1. Micro Account

    A forex trade made up of contracts for 1,000 units of currency. ...
  2. Forex Club

    A national association of wholesale foreign exchange professionals ...
  3. Foreign Exchange

    The exchange of one currency for another, or the conversion of ...
  4. Interbank Market

    The financial system and trading of currencies among banks and ...
  5. Authorized Forex Dealer

    Any type of financial institution that has received authorization ...
  6. Cable

    Slang used among forex traders referring to the exchange rate ...
Related Articles
  1. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  2. Getting Started In Foreign Exchange ...
    Forex Education

    Getting Started In Foreign Exchange ...

  3. Top 4 Things Successful Forex Traders ...
    Forex Education

    Top 4 Things Successful Forex Traders ...

  4. Getting Started In Forex Options
    Options & Futures

    Getting Started In Forex Options

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center