Best Micro Forex Brokers 2021
Below is a list of Forex brokers who offer mini and micro accounts as low as $1 USD and under $1000 and mini lot size trading of 10 000 units or less.
Lot size reference:
1 lot = 100k = 100 000 units (standard lot)
0.1 lot = 10k = 10 000 units (mini lot)
0.01 lot = 1k = 1000 units (micro lot)
Benefits of Trading Mini Accounts and Mini Lots in Forex
It is often very convenient for beginner traders to start off with micro Forex broker accounts. By investing little money and trading mini lot sizes Forex traders are able to put to test their own knowledge and trading skills without undertaking serious financial risks.
Micro accounts are also a good way to test a Forex broker as well: How good is the trading platform? Order execution and services overall? Only live trading can provide answers.
By starting with mini lot sizes, traders learn to control risks and money flow more effectively and without unnecessary stress, which is always present when trading standard size lots. Coping with risks and emotions also need practice, mini and micro accounts and mini lots allow this practice to be effective.
Forex brokers who offer micro accounts, and, more importantly, mini lots provide more freedom and flexibility to their clients allowing them to have even more control over their own investments and risks.
What is better than a 0.1 lot, known as a mini-lot? 🙂 An even smaller lot! Some Forex brokers allow to trade with as little as 0.01 lot (micro lots), and some don’t have any limitations for lot sizes at all!
For traders who look to open an account under $1000 dollars, it is highly recommended to start trading with micro-lots (0.01 lot) or less.
The next figures should explain the math behind risks when trading with different lot sizes on mini accounts:
1st Account balance $250, min lot size 0.1 lot (each pip costs on average $1).
2nd Account balance $250, min lot size 0.01 lot (each pip costs on average $0.10).
Typical trading situation: 2 consecutive losses of just 10 pips each + 4 pips spread (2 pips for each trade) = 24 pips loss.
1st account, where the cost of each pip was $1 would lose $24, which is 1/10 of the account being lost in no time and with just 10 pips move against a trader!
(10 pips in Forex is nothing! With intra-day trading strategies Forex traders lose on average from 15 to 25 pips per move!)
2nd account, where the cost of each pip was $0.1 has lost just $2.4, which is not going to affect the balance much.
Remember about the risks, chose a micro forex broker not just by a suitable minimum account size, but also by a lot size, depending on how much you’re going to invest.