Forex Account Types Foreign exchange trading is one of the riskiest investment initiatives one can possibly undertake. Still, if you find the never-ending circulation of cash flows on the Forex market especially appealing, here are some tips as to the different types of Forex accounts you can use to start trading in foreign currencies. If you are new to currency trading, perhaps you should first have a look at one of the numerous demo accounts, generously offered by Forex brokers to their inexperienced clients. And like most demo items, these accounts are made as to introduce you to some of the main principles of foreign exchange trading. Thus, they will allow you to pick up the paid account that will best fit your trading style and personal risk tolerance. After you have tested several demo accounts with different Forex dealers, you can proceed by picking up a suitable paid account. You can choose between a mini account, managed account, and full Forex account. Of all available paid Forex accounts, i.e. the accounts you should fund to trade, one of the most popular type is the mini account. In general terms, mini accounts are the choice of traders with a lower level of risk tolerance, as they allow easy risk customization and lower initial deposits. In other words, demo accounts and mini accounts are suitable for budding traders, as they allow you to pick up a trading system that best meets your investment expectations and goals. On the other hand, managed accounts are better suited for more experienced traders. These function to make group investments and are after higher profits. Managed accounts are the choice of budding Forex sharks. As budding sharks, these traders are still not confident enough to shoulder great financial risks but pay to a money manager as to develop a trading system on their behalf. It is worth opening a managed account if you are certain that the potential profit will be reasonably higher that the manager’s fee. Also, you may need to explain to your Forex manager what signals he or she should be looking for and how to be acted upon receiving them. Alternatively, you can try to imitate the Forex trading system of your company in the hope that it will work for you just as well. Finally, the full Forex accounts are the choice of experienced traders who have accumulated sufficient experience and financial resources. Seasoned traders are able to develop and explore a trading system of their own liking. The full Forex account comes with 100,000 currency units and is considered a comparatively risky account. Even the smallest fluctuations in exchange rates can result in large amounts appearing or disappearing from the account. If a certain exchange rate is listed at 1.5, the smallest available trade will be worth $150,000. Just one percent cash balance is required to cover trades of such size. Thus, you will need a sum of $1500 to control this currency amount. As you have already noticed yourself, there is a long way to go from a demo or mini account to a full Forex account and big money.