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Currently, the Forex market is a hot topic all over the world. In today’s difficult times, many people are looking for a market that will not be affected by the financial crisis. It is the Forex market that works in any crisis. Every day, there are transactions worth several trillion dollars. That is why it attracts many people and financial institutions.
Private traders trade in the Forex market only through intermediaries, companies that have the status of market participant. Practically, to start working in the foreign exchange market, you need to open a trading account with a brokerage company. Terms of trade vary greatly depending on the type of account. For comfortable work, you need to be able to choose the right one from many accounts. Some beginners try to find the answer to the question: what is standard account in forex?
Most brokerage companies offer customers a choice of several types of accounts, which differ in minimum deposits, transaction amounts, pricing methods, trading platforms and other features. But, basically, accounts are distinguished by minimal deposits and trading volumes.
This account is one of the most common. In fact, this is the reason why it is known as a standard account. The minimum deposit between brokers ranges from $100 to $10,000. Standard accounts are suitable for a wide range of traders. In recent years, the technology of crushing the standard lot has spread. Forex companies give the opportunity to open positions with a minimum volume of 0.01. It became possible due to:
The broker can summarize the positions of clients and bring standard volumes to the market.
Standard account holders are usually able to trade many currency pairs and difference contracts. In turn, standard accounts may differ in pricing method and transaction technology. The same company can offer several accounts with STP and ECN technologies, fixed and floating spreads. These technologies involve taking traders’ transactions to the interbank market.
An important characteristic of a standard account is segregation. It means that clients’ money is kept separately from the company’s funds, which ensures their safety.
The Forex market is quite popular. Behind this popularity there are many factors. One of the main factors is the amount of profit that can be made. However, trade also involves some risks. If you do not manage properly, you may suffer significant losses. So you should carefully consider the choice of broker and trading account.
