Best Micro Account Forex Brokers 2021

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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.

1
FXTM
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
2
AvaTrade
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
XM
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Quick and easy account registration
Excellent bonuses available in some locations
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Best Micro Account Forex Brokers

FXTM, Best all-around: high floating leverage + fast execution.
AvaTrade, Highly regulated, choice of fixed or floating spreads.
XM, Exception range of assets + negative balance protection.

FXTM

5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

We have made FXTM our top-rated broker because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, FSC, CMA

Year Founded

2011

Type of Broker

Instant/Market Execution

Minimum Deposit

$50

Maximum Leverage

Flexible

Type of Platform

MetaTrader 4, MetaTrader 5

FXTM, or “ForexTime”, has been around for a long time: they were founded in 2011. Recent years have seen them continue to steadily expand their business, and they are well- regulated by the U.K., Cyprus, Mauritius, and South Africa. The brand is owned by private companies incorporated in the U.K., Cyprus, and Mauritius. Customers of FXTM have access to more than 57 Forex currency pairs and crosses, precious metals, the major energies, equity indices, big cryptocurrencies, and a few individual American stocks. Talking of stocks, FXTM are quite unique in the area of trading stocks, as they enable direct trading through real legal ownership, not just wrapped as CFDs like almost every other similar brokerage offers.

FXTM offers traders a choice between two of the most popular execution models: customers may open either an ECN-type account, or one that trades by “straight-through processing”. Clients have a straight choice between two trading platforms, with both MetaTrader 4 and MetaTrader 5 on offer.

Through their Mauritius regulator, FXTM offer leverage as high as 1000 to 1. In the U.K. and Cyprus, they are limited by law from offering more than 30 to 1.

If you are looking for a broker with a good copy trading program, it is worth taking a serious look at FXTM’s “FXTM Invest” copy trading program.

FXTM Pros & Cons

Advantages

  • Excellent client deposit protection

  • Low minimum deposit

  • Free MT4 add-ons and VPS hosting

  • Good educational tools

Disadvantages

  • No cryptocurrencies or exotic currencies

  • Low leverage for retail traders

  • Internal withdrawal fees and an inactivity fee

AvaTrade

5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade was founded in 2006 in Dublin, Ireland. They are one of the largest and most famous Forex / CFD brokers in the world and became well-known for offering their clients a choice of fixed or floating spread cost of trading models. They enjoy an extremely high and strong level of regulation, making them a favorite for traders who are extremely nervous about the security of their deposit, which in Ireland can be protected by a strong investor deposit protection provision. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava’s maximum leverage offered runs as high as 400 to 1.

Unique Features

Headquarters

Ireland

Year Founded

2006

Type of Broker

ECN/STP

Minimum Deposit

$100

Maximum Leverage

1:400

Type of Platform

MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based

In addition to their longevity and safe reputation, clients know that through AvaTrade they have access to a broad range of asset classes through which diversification can be achieved successfully: AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. Even better, and unusually, 2 bonds and 6 ETFs are also on the menu. The diversity offered here stands out.

Whether you are located within the European Union or not, all branches of AvaTrade will offer you negative balance protection, above and beyond what is mandated by the law. This means that under no circumstances will any client of AvaTrade ever be held liable by the firm for an amount larger than their deposit.

 

AvaTrade Pros & Cons

Advantages

  • Well-regulated globally, with the Bank of Ireland, the primary regulator

  • Low minimum deposit and in-depth educational tools

  • Wide asset choice across seven sectors

  • Superior mobile trading platform

Disadvantages

  • Low leverage for retail traders

  • High quarterly inactivity fee

  • Unacceptable cost for AvaProtect

XM

4.5/5 in this category
In Summary
Exception range of assets + negative balance protection

Founded in 2009, XM has grown into a firm employing more than 450 professionals to service the financial trading community. It is a well-regulated firm with licenses from the Cyprus Securities and Exchange Commission (CySec) and the Australian Securities and Investments Commission (ASIC). 

XM partners with investment grade banks and uses segregated accounts to ensure security. Retail client funds are insured up to €20,000 by the Investor Compensation Fund. Meanwhile, all clients benefit from Negative Balance Protection, so they are never at risk of losing more than their account balance. 

Unique Features

Headquarters

Cyprus

Regulation

CySEC, ASIC, IFSC

Year Founded

2009

Type of Broker

Market Maker

Minimum Deposit

$5

Maximum Leverage

1:888

Type of Platform

MetaTrader 4, MetaTrader 5, Web-based

XM offers micro accounts and standard account sizes, both just requiring a $5 deposit. There is also an “XM Zero” account with spreads on Forex majors as low as 0 pips, access to 55 Forex pairs and XM's no requotes execution policy. No requotes means you will always receive the price you see on the screen when you execute your trade. 99.35% of all trading orders are executed in less than one second, with no requotes and no rejections. 

XM sticks to the well-known and tested MetaTrader suite, offering MetaTrader 4 and MetaTrader 5, which are both available on desktop, smartphone, and tablets. 

Clients can contact XM by email and a support desk by phone through multiple languages.

XM Pros & Cons

Advantages

  • Outstanding trading tools and loyalty program

  • Low minimum deposit, high leverage, and competitive trading cost

  • Excellent research and education

  • Trustworthy and transparent with generous bonuses and incentives

Disadvantages

  • Inactivity fee

Top Forex Brokers with Mini & Micro 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.

Methodology

We reviewed over 100 brokers based on eleven criteria. Each research consists of over 2,000 words and lasted more than ten hours. Over 100 brokers were reviewed in-depth and from a trader's perspective, ignoring the marketing tactics deployed by some to confuse retail traders. Therefore, we sourced the list of our best micro account Forex brokers from more than 200,000 words of dedicated research compiled over 1,000 hours, ensuring the most comprehensive approach to identify the best micro account Forex brokers.

The eleven criteria used in our research consist of:

  • Regulation and Security
  • Trading Costs
  • Asset Selection
  • Account Types
  • Trading Platforms
  • Unique Features
  • Research and Education
  • Customer Support
  • Bonuses and Promotions
  • Account Opening Process
  • Deposits & Withdrawals

The Best Micro Forex Brokers Overview

 

AvaTrade

XM

Regulation

 

Yes

Yes

Minimum Raw Spreads

Not Applicable

Not Applicable

Minimum Standard Spreads

0.9 pips

0.6 pips

Minimum Commission

for Forex

Not Applicable

Not Applicable

Commission Rebates

Not Applicable

No

Minimum Deposit

$100

$5

Currency Pairs

55

57

Maximum

Retail Leverage

1:30

1:888

MT4

 

Yes

Yes

MT5

 

Yes

Yes

cTrader

 

No

No

Proprietary

Platform

Yes

No

Automated

Trading

Yes

Yes

Social Trading / Copy Trading

Yes

No

MT4/MT5

Add-Ons

No

Yes

Micro Forex Brokers in Detail

AvaTrade

 

AvaTrade is one of the best-regulated brokers, and maintains a market-leading trading academy, SharpTrader, spun out due to its success. When researching “What is a micro trading account?”, AvaTrade does not have one for Forex traders, where the minimum transaction size is 0.01 standard lots or 1,000 currency units. AvaTrade offers equity traders on select CFDs on the MT5 trading platform a trade size of 0.001 standard lots or 100 units, but the minimum deposit is $100.

XM

 

XM is another excellent choice for traders who wish to take advantage of the benefits of a micro Forex account. For a minimum deposit of only $5, clients get access to an excellent asset selection and maximum leverage of 1:888. XM offers its micro alternative in eleven base currencies. There is a 100 lots restriction per order ticket, and each account remains limited to 300 positions, or a total of 30 standard lots, which suffices for all micro lot traders.

FXTM

 

FXTM remains one of the best overall Forex brokers and an award-winning educational section. The Cent Account is only available with the MT4 trading platform, which receives an upgrade via six plug-ins. Traders get 25 currency pairs, plus gold and silver, but the minimum spread is 1.5 pips. FXTM grants maximum leverage of 1:1000 for this account type, and the minimum deposit is only $10 or a currency equivalent. FXTM also offers its FXTM Pivot Points Strategy as an EA.

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. The other two being standard and miniIt 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 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.

Final Thoughts

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.

FAQs

What is a cent account in Forex?

A cent account in Forex allows traders to transact in micro lots, with the smallest possible size of 0.10. The pip value of a 0.10 lot trade in a micro account is just $0.01, hence the name cent account.

What is a micro account in Forex?

A micro account in Forex is the more commonly used name for a cent account. It grants traders exposure to pip values as low as $0.01, allowing traders to manage smaller portfolios of sub-$100 effectively. They are ideal for new traders to learn and for seasoned traders to test new strategies.

What is the best leverage for a micro account?

Most Forex brokers offer 1:500, while some grant an improvement to 1:1000 and even 1:2000. The most critical aspect of leverage remains risk management and the strict implementation of it.

Can I trade Forex with $10?

While it is possible to trade with $10 in a micro account in Forex, I recommend no less than $100. Traders with less than $1,000 should always consider the advantages of micro vs. standard. Most brokers have a limitation on the maximum balance allowed in a micro account before upgrading to a mini or standard alternative.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.