Starting out in trading is something that not everyone can afford. The fact is that apart from hours of learning and training you have to invest no less than $1000. Unsurprisingly only real enthusiasts are willing to risk such a big sum. Fortunately, we have a solution for those having a smaller deposit – opt for Forex brokers with $1 minimum deposit!
What is a cent account?
A cent account is a type of account where you trade risking not dollars but cents. The difference between a standard account and a cent one is shown below:
- Standard account – point price when trading 0.1 lots – 1$. Point price when trading 1 lot – 10$.
- Cent account – point price when trading 0.1 lots – 0,01$. Point price when trading 1 lot – 0,1$.
In this case, the profit or loss on the “cent” deposit with a transaction volume of 0.1 lot will be from 100 cents, on the classic one – from $100.
How to create an account with $1 minimum deposit?
To open a cent account, you need:
- Familiarize yourself with the public offer agreement, which is posted on the website of the broker company. It prescribes all the rules for conducting operations, so read it carefully.
- Register:
- initialization;
- filling in personal data;
- choosing an account type: here you should pick a cent account, as well as specify the currency, and the size of the leverage.
- Pass verification – it is needed to confirm the data specified in the previous step. For some Forex brokers with a $1 minimum deposit, this procedure is not mandatory, but without it, the account has much less functionality.
- Install the trading platform.
- Top up the deposit.
While this process may seem long, it really isn’t. And one more important point: keep your username and password in a safe place.
How to trade with Forex brokers with $1 minimum deposit
In principle, trading on a cent deposit is practically no different from the one where a standard one is used. The main principle is to buy low and then sell high.
When a trader opens a position in the foreign exchange market, it means that they form an order: to buy or sell.
To open an order, you need:
- Click on the corresponding tab in the terminal menu.
- Choose a currency pair.
- Indicate the volume of the transaction (it is measured in lots).
- Set Stop Loss and Take Profit – loss and profit limiters.
- Select the type of order: for example, market order, if we do not want to use limit ones.
- Click on the buy or sell button.
After that, you need to carefully monitor the change in price. A position can be closed in two ways: by automatically triggering Stop Loss or Take Profit, or manually.
Bottom line
Experienced traders wish they knew about cent accounts from the very start of their journey. Therefore, leverage the services of Forex brokers with a $1 minimum deposit. Only in this case, the first steps in trading would be thoughtful and will not lead to disappointment due to large financial losses.
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