An Examination of Forex Accounts

With the rise of the global forex (foreign exchange) market, many investors have been looking into forex accounts. But just what are they? A foreign exchange account is the account a trader opens with a retail forex broker. The first type of account is often called a demo account. Once a new trader has tried demo accounts with several traders, he or she will usually move on to a funded account. These are split into three categories, mini accounts, full accounts, and managed accounts. Full accounts trade currency in batches of one hundred thousand, whereas mini accounts do so in groups of ten thousand. A managed account is where a money manager does the trading (for a fee) on the clients behalf.Due to the various qualities of forex trading, forex accounts have been widely successful worldwide. Since the trade volume, large number of traders, dispersion, variable exchange rates, and high profits (with low margins and high volume trading) all contribute to make the foreign exchange one of the most powerful markets in the world. Anyone who considers themselves a global investor absolutely must at least take a look at the various opportunities available in the forex market.It is important for the new forex investor to decide what type of forex accounts they're looking for in order to suit their needs. A small-scale retail investor, for example, will probably want a demo or mini account in order to learn how to exploit a profitable market and become accustomed to the various banking methods involved. Some traders who have the extra resources to have someone manage the forex account for them may be more interested in a managed account.