Five Different Types of Accounts Offered by Brokers to Nigerian Traders

By: Damian Okonkwo

Brokers have improved on the quality of services they offer their traders today in Nigeria. Hence most brokers provide as many as five different types of accounts for the new traders to choose from. Below are the five different types of accounts provided by brokers for the trader to choose from.

Demo Account: The demo account otherwise known as a practice account is one strictly designed for beginners to practice how to trade before proceeding to create a live account. The demo accounts are funded with virtual money and are used for training or testing how the forex market operates. The demo account provides traders the opportunity to test their new ideas and strategies before proceeding to trade them on the live account. The importance of a demo account to beginners cannot be over-emphasized. It is therefore recommended that every novice trader should first create a demo account with a broker and practice with it for at least a month before proceeding to trade a live account.

Cent: The cent account allows traders to deposit and trade the forex market using cent. Of course, a Cent is 100 times less than a dollar. The Cent account is often very suitable for traders with little especially those trading with less than a hundred dollars. The Cent account offers the highest leverage for trading as much as 1:1000. Similarly, traders who seek to trade with robots and other high risks would find the cent account very suitable for them.

Mini Account: The mini allows traders to start trading with any limits. This type of account is often used for high-leveraged trading. Mini accounts are suitable for beginners as it enables them to utilize price actions while trading. The major disadvantage of this account is that it has a very loose spread and therefore not suitable for scalpers.

Standard Account: The standard account has fixed spreads and often requires a minimum deposit of hundred dollars for trading. Brokers often provided a wide array of financial instruments to trade on the standard account more than other account types hence making it the most preferred account for traders seeking a wider exposition into the market pairs to trade. The standard account is the best account for scalpers as they have fixed spreads.

ECN Zero Accounts: This type of account is regarded as the best type of account to trade with as it provides 0 pips spreads for trading. However, the only disadvantage of this type of account is that; it is not suitable for traders with little capital to start with; as this account requires you to deposit a minimum of 500USD as starting capital. Scalpers consider this the best account for them to make easy profits from the market daily.