The most effective way to learn how to trade Forex is in a micro account with a small deposit. It offers a real trading experience and prevents beginner traders from falling victim to the “demo account trap”, where success in a demo environment is incorrectly believed to prove readiness for success in a real money environment.
- Pepperstone, Great ECN execution on MT4 platform.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
Comparison of the Best Micro Account Brokers
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Regulators | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | ASIC, CySEC, FSCA | ASIC, CySEC, FCA, SCB | FMA, FSA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID |
Year Established | 2010 | 2005 | 2009 | 2014 | 2006 |
Execution Type(s) | No Dealing Desk, NDD | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips | 1.1 pips | 1.0 pips | 1.3 pips | 0.9 pips |
Average Trading Cost GBP/USD | 1.6 pips | 1.4 pips | 1.2 pips | 2.0 pips | 1.5 pips |
Average Trading Cost Gold | $0.20 | $0.21 | $0.12 | $0.90 | $0.29 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Trading View | Other, MetaTrader 4, MetaTrader 5, Web-based+ |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone ranks among the best micro account Forex brokers due to its cutting-edge trading environment. It upgrades the out-of-the-box MT4/MT5 trading platforms with the Smart Trader Tools package, featuring 28 plugins. Autochartist is also available, but Capitalise AI, which supports algorithmic trading in a code-free environment, sets Pepperstone apart from most competitors.
The well-balanced asset selection, including cryptocurrencies and ETFs, plus competitive commission-based trading fees, ensure traders pay less and earn more. Pepperstone connects social traders to TradingView, where 50M+ traders interact and share ideas. Copy traders get embedded MT4, MT5, cTrader service, the well-known Myfxbook Autotrade, and DupliTrade.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosForex trading has lower capital entry requirements, but beginners often approach it with $100 or less. It makes standard Forex trading accounts unsuitable, and smaller portfolios require micro lot trading. Eightcap offers minimum transaction sizes of 0.1 lots, which is 1.0 micro lot. Unlike many competitors, Eightcap maintains the same competitive trading fees, as it does not feature a stand-alone account type for micro lot trading.
Eightcap also ensures beginners have quality educational content and connects accounts to the active TradingView community. MT4/MT5 has embedded copy trading services, and Capitalise AI allows traders to automatize strategies in a code-free environment.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade was founded in 2007 and their headquarters are based in Ireland. This reputable and trusted forex broker is regulated in various counties around the world. Starting with their home country of Ireland, the broker is regulated by the Central Bank of Ireland. Furthermore, they are regulated in Australia by the Australian Securities and Investments Commission, in the British Virgin Islands, AvaTrade is regulated by the highly regarded FSC, in South Africa, the South African Financial Sector Conduct Authority, and in Japan they hold two different licences from two regulators, namely the Financial Futures Association and the Financial Services Agency. They also hold licences in Israel and the UAE.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Top Forex Brokers with Mini, Micro, & Cent Accounts
We have researched the best micro account Forex brokers so that you can choose the best Forex broker to use to start Forex trading in a beginner-friendly and competitive trading environment. We also outline the benefits of a micro account Forex and assist you in deciding between a micro vs. standard option.
What is a Micro Account?
Beginner traders often ask: “What is a micro account in Forex trading?”. A micro account is the best option for new retail traders to learn how to trade. It is one of the three account types which Forex brokers offer and is often called a “cent account”. The other two being standard and mini. It is ideal for exposure to live trading conditions without risking much capital. A $100 deposit often suffices to learn how to trade Forex in a micro account. Advanced and professional traders may also use a micro account to test a new trading strategy, an expert advisor (EA), or another automated trading strategy. In a micro account, 1.0 lot equals just 1,000 currency units, and a 0.10 lot transaction, the minimum transaction size, totals ten currency units. A Forex micro account, also known as a micro cent Forex account, is not available at all Forex brokers.
While a micro account remains an excellent choice for new traders to learn or experienced traders to test, the profit potential is limited. Many brokers who provide micro accounts grant the highest leverage possible, in some cases 1:2000. Before new traders jump at such an offer, it works both ways. Leverage can magnify profits tremendously, but it does the same to losses. Risk management protects against losses, but regrettably, most traders fail to implement it. Before depositing any account type, I highly recommend that new traders learn about psychology and risk management before proceeding. How much money do I need to start trading Forex is another matter which beginner traders should consider before starting trading with real money.
Micro vs. Standard Account
All brokers offer a standard account, where 1.0 lot equals 100,000 currency units. The minimum transaction size is 0.01 lots, or 1,000 units, the same as 1.0 lots in a micro / cent account. Traders in a Forex micro account have significantly more flexibility, as they can transact 0.10 micro-lots. It offers an advantage, especially to traders who take multiple positions in the same asset. The pip value in a standard account, if the base currency is in US Dollars, and the quote currency is also in US Dollars, is $10. It decreases to $1 in a mini account and lowers to $0.10 in the micro alternative. With the smallest transaction size in a micro account at 0.10, unlike 0.01 in the standard one, the pip value is $0.01. It is why some refer to it as a micro cent account Forex.
New traders should opt for a Forex micro vs. standard account, as it allows them to learn how to trade with a minor capital commitment but in a live trading environment. While the minimum transaction size in a standard account is 0.01 lots, or 1,000 currency units, in a micro account, it is 0.10 micro lots or 100 currency units. Therefore, the minimum pip value decreases from $0.10 to $0.01, granting increased flexibility. It may not appear as a significant difference on paper but is immediately notable in a live trading environment. Once managing multiple orders, traders will swiftly recognize the benefits of a Forex micro vs. standard account. The lower pip value allows new traders to operate a portfolio longer, increasing the educational value. When learning how to trade, initial losses are a normal development along the process. In using a Forex micro vs. standard account, new traders boost their longevity by ten times. The lower minimum deposit requirements also ensure all types of traders have access to the most efficient form of learning how to trade.
Another notable benefit when using a Forex micro vs. standard account is the ability to test algorithmic and automated trading solutions or expert advisors (EAs). The rising popularity of autonomous trading and the benefits a Forex micro vs. standard account provides, to new and seasoned traders alike, results in more Forex brokers offering micro as an option to their trading accounts selection.
Bottom Line
When evaluating a Forex micro vs. standard account, new traders should always opt for the former. It remains the best option to learn how to trade, work on trading psychology, risk management, and trading strategies while avoiding the “demo account trap” that leads most traders to lose their capital.
You might also be interested in reviewing the below top brokers:
