Cent Account Forex Brokers

What is a Cent account?

Cent account Forex brokers are brokers that offer forex trading accounts where the balance is always displayed in cents, no matter how much you deposit. This account type denominates the amount deposited into cents. If you make a deposit of five dollars into your account, the balance will be 500 cents. Actually, there isn’t much difference between how a Cent Account works and how traditional trading accounts work. The simple difference is that this type of account allows a trader to trade micro and nano lots.

Cent accounts are known for their accuracy in deposits, since they display and provide the balance of funds in cents. This is so the trader will be able to have an accurate amount for their funds and not lose any real money when trying out the experience of trading. With Cent account FX brokers, there are several trading platforms that permit traders to trade “for real”, which are very common for beginner traders to use as they enter the trading industry.

Cent Account Forex Brokers list

The list below offers a descending order of brokers that provide Cent accounts, which is what you’ll need to read in order to understand which broker is suitable for you. These brokers all help with beginner traders who need a hand with the trading industry, and they offer an extensive guide on how-to start with making sound trading strategies and reliable trading solutions.

 

Why Use Cent Account Forex Brokers?

Cent accounts Forex brokers tend to have minimum deposits of around $5 to $10. This will give you quick, and easy access to live trading and to the different financial markets. Cent Accounts represent a smooth transition from demo Forex accounts before starting to trade larger amounts. It is designed with smaller depositors in mind and those that are relatively new to Forex trading, traders with small investments. Traders can also test out strategies without spending great amounts of money, too. In fact, they make a great starting point, giving users a real experience with real money, as well as an insight to the psychology behind trading Forex. However, they can attain this without the great risks that trading in larger sums would bring. The trading environment is also much simpler with a Cent Account, and easier to get used to, as well.

With Cent account Forex brokers, there is an instant execution speed and it operates efficiently and effectively. You would appreciate the speed of execution of trading operations, and the fact that it would help you to further understand the trading industry by using Cent accounts. It gives the trader a feel of the trading environment, without being exposed to extreme financial risk, also allowing them to experience how to make sound trading decisions.

LiteForex was the first Cent account Forex broker to offer the accounts back in 2006. It was initially created to help to develop and test trade systems. LiteForex introduced the Cent account and allowed traders to virtually experience trading, without actually losing any money. However, LiteForex is not the only broker that offers Cent account at the moment; there are many financial services providers that give the option for traders, as mentioned above. OctaFX for example offers very fast execution and a variety of instruments to trade on their cent account.

The Drawbacks and Disadvantages of Cent Account Forex Brokers

We talked above about some of the advantages, like how Cent Accounts are great for beginner traders as they permit trading with actual money, but without great risk. Additionally, beginners also become used to seeing their money reach thousands, which is considered a useful tool later, even though they’re currently dealing in thousands of cents. They also allow small deposits for traders too.

The disadvantages of these accounts are that most Cent Account Forex brokers limit the maximum size of the account, to keep their use to a minimum. What is more obvious is that, even the best Forex Cent Account is usually associated with spreads that are higher to compensate the brokers.

Trading Platform that Uses Cent Accounts

There are many trading platforms that provide Cent accounts to traders; it can be considered as a neat trick. The most common trading platform that offers Cent accounts is MetaTrader4.

MetaTrader4, or MT4, is a very common trading platform that is used by the majority of traders all over the world. MT4 is also the go-to trading platform for beginner traders who just need to try out the trading experience before making a decision on whether trading is suited to their needs or not.

Conclusion

If you’re looking at whether a Cent Account is right for you then you are going to have to consider your own experience, want and needs from trading Forex. If you have already gained experience in trading Forex through a demo account but are nervous about trading the big bucks, then a Cent Account would make a great next step. You might not get the best deals in terms of spreads, but it does represent a step into the real world of Forex trading without the associated risks that a standard Forex account might bring.

The trading platform that provides Cent accounts is most commonly found in MetaTrader4 or MT4 for short. It is also a trading platform commonly used by beginner traders, because it gives them a comprehensive break down of the trading industry, without becoming too complicated.

Whether you are a beginner or an advanced trader, you’ll be able to find Cent accounts very helpful.