Best Micro Account Forex Brokers 2021

Advertiser Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

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
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
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
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
Get Started

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

FXTM, previously known as ForexTime, was founded in 2011 and has grown to become one of the largest forex trading platforms in the world. The broker has a good selection of international currencies to invest in with a collection of over 57 currency pairings. Because of their above-board operations and highly regulated structure, FXTM is highly trusted and respectable. The Financial Services Commission of the Republic of Mauritius, the Financial Conduct Authority of the United Kingdom, the Financial Sector Conduct Authority of South Africa, and the Cyprus Securities and Exchange Commission are all regulatory bodies that oversee FXTM.

AvaTrade

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

AvaTrade 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.

XM

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

XM is a financial services provider that was formed in 2009. With over 10 years of experience in the forex trading sector. XM offers traders a wide selection of currencies, CDFs, oil, stock indices and more. The company is regulated by eleven different regulators across the world. In Cyprus they are regulated by CySec, in the United Kingdom by the FCA, in Germany by BaFin, in Spain by the CNMV, in Hungary by MNB, in Italy by CONSOB, in France by the ACPR, in Finland by the FIN-FSA, in Poland by the KNF, in the Netherlands by the AFM, and finally in Sweden by the FI.

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.