Each forex broker offers several types of forex accounts with different trading conditions. And before you open an account, you need to know different kinds of forex accounts and their uses.

So, let’s get started.

1. Demo account

On the demo account, trading is carried out with virtual money. This account allows you to get acquainted with the trading platform and test your trading strategies without losing your money. And the best thing is you can open a demo account for free.

2. Cent accounts

If you are a beginner and have gained enough experience on a demo account, it is recommended that you should not immediately open an account of a serious amount.

After all, the demo account has one drawback – you traded virtual money. By trading virtual money, you do not experience those emotions that arise with real profits or losses. And you don’t know how this can affect your trading.

Therefore, after the demo, it is advised to switch to a cent account. The balance of a cent account is calculated in cents, so the minimum deposit to open an account is only $1 – 10.

3. Standard or classic accounts

This is the most well-known type of Forex account. This type of account offers high leverage, fixed spreads, and no commissions.

The minimum lot for a standard account is 0.01. In this lot, one point of price movement will be approximately $0.1, which allows you to start trading with a deposit of $100.

Stop-loss and take-profit can be set directly at the opening of the order and after. It is an excellent account for trading on daily charts and intraday, non-aggressive trading. For scalpers, this account is not suitable.

4. ECN Account

ECN (electronic communication network) account is suitable for all types of trading, and especially for scalpers, with its numerous and short-lived transactions. In the ECN account, you get instant execution of orders, which the standard account does not have.

A distinctive feature of this account is small, floating spreads and transaction fees. There are practically no requotes, but with increasing market activity, there is slippage and an increase in the spread.

It should be borne in mind that stop-loss and take-profit can be set only after the opening of the transaction in an ECN account.

The minimum deposit for this type of account can vary from $200 and above.

5. PAMM Account

If you don’t have any trading experience and want to invest your funds in Forex trading, you can open a PAMM account.

A PAMM account is managed by a trader who will do all the trading on your behalf.

In case of a profit, a trader will get a commission from the amount.

6. Crypto Forex Accounts

This type of account is designed for the possibility of using cryptocurrency trading using forex technology.

Using this account, you can trade on the Meta Trader platform and trade with leverage.

These are the main types of forex accounts available to traders. When choosing your broker and account, pay attention to the reliability of the brokerage firm.