Changing The Currency Market With The Introduction Of The Forex Mini Account


Many people feel that the reason why the currency trading market is so popular today is its potential for disproportionate profits in a rather short amount of time. While the amount of leverage in Forex trades does lead to bigger profits and earnings are substantially higher than in any other trading market, what many are now realizing is that the higher than normal profits are only one explanation as to Forex and it newly found popularity. Perhaps the most significant factor of the Forex markets rise to the top, is that unlike other markets, Forex has availed itself to traders either with or without excessive capital. This is no more evident than in the introduction of the Forex Mini Account.


To put it in a historical perspective, in the past, Forex trading was not always so inclusive. If a potential investor wanted to enter the currency trade, a healthy amount of capital was required in order to open a live account with a brokerage firm. In some cases, this initial investment could be as low as $5000; however, in most cases the minimum for these early Forex accounts required an account deposit anywhere in the range from $20,000 to $50,000 or more. While this amount of risk capital may not have been hard for an experienced investor, a large corporation or a well-established banking and lending institution to come up with, for the average investor, this market was considered cost prohibitive. As a result, for many of its formidable years, the Forex market was much like politics, a playground for the rich. All that changed dramatically with the advent of the Forex Mini Account.


For a potential investor the amount of capital it would take to open a standard Forex account made diving into the currency market extremely difficult if not altogether impossible. Then, in order to bring more capital to the currency market, brokerage firms began toying with the idea of allowing an investor to open up what they logically termed a Forex Mini Account. These smaller capitalized accounts were typically opened with less than $1000. This strategic move opened up the currency market to investors of various capital resources, greatly increased the amount of cumulative trades mad on currency and as some believe, was in instrumental in making Forex what it is today.


To the average onlooker, a trading account worth so little could not possible do much about making anyone any real money. In many markets that would be a correct assumption, however, with the Forex market, a trader has the ability to leverage currency trades in some cases up to 200 percent. This translates to the fact that a Forex Mini Account bearing only $50 in actual capital will allow the account holder to trade up to $18,000 in global currency. That can add up to some serious money.



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