It's easy with SwissUnion Forex: an investor's guide to choosing account types

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Opening your first forex account is one of the most important steps you can take as a beginner trader. It is not something you can do without some knowledge.

Many novice traders on SwissUnion Forex broker either rush to choose an account type without properly understanding what it offers. Others are overwhelmed by the many different types of accounts. Both of these approaches are wrong but don't worry, specialists at SwissUnion.net are ready to help.

First, you need to choose the brokerage company, for example, SwissUnion broker to start your trading. Second, you need to go through the registration process. And third, after registration you need to select an account type.

Types of Forex Trading Accounts

All the companies like SwissUnion forex broker allow clients to choose their trading tools and deposit amount. However, many account types have certain qualities, even though they may carry different names from broker to broker.

We'll walk you through each type of forex account shortly, but first, you need to understand the pip value and lot size.

Pip value

The difference between the opening and closing prices of trade is calculated in points. In any trade, your loss/profit is also taken into account in points (pips).

The pip value is directly related to the trading volume. In forex trading volume is considered to be certain amounts, namely "lots". This is the number of currency units that you buy/sell in a trade.

A standard lot is 100,000 units of currency. There are also mini lots (10,000 currency units), micro-lots (1,000 currency units) and nano lots (100 currency units).

Hence, making a profit when trading the Forex markets is not necessarily related to which trader makes the most pips, but to how much each pip is worth.

Before choosing an account type, it is important to have a good understanding of what these units of measurement mean (lots and pips) since different account types allow you to trade different lot sizes. Therefore, you should check your equity and the volume you want to trade before choosing an account.

SwissUnion broker analysts: The most common types of trading accounts

As the specialists at SwissUnion.net explained, the most common types of live trading accounts are based on the lot size you want to trade. With this in mind, each type of account also has a different minimum deposit level.

SwissUnion Forex broker: Mini/micro accounts

Micro accounts, as their name suggests, are suitable for traders with little capital. They allow you to enter the market with a small minimum deposit limit. However, since these accounts have a low barrier to entry, restrictions are imposed on your trading activities. Most micro-accounts restrict you to trading nano or micro-lots. This helps you control your risk levels, making these account types ideal for novice traders.

Standard accounts

Different brokers like SwissUnion Forex broker use different names for their standard accounts. Some brokers may call this type of account "Classic" or "Intermediate". They can also refer to them as "premium" or "gold" accounts, which is a bit misleading as these accounts are a regular offering from the broker.

Standard accounts usually have a minimum deposit limit of $ 1000 to $ 5000 and they allow you to trade mini lots. However, some standard accounts also allow you to trade standard lots, but this is rare.

VIP/professional accounts

While the names of these account types suggest that you will need accreditation if you want to open one, this is not necessarily the case. VIP accounts according to SwissUnion Forex broker are usually reserved only for those with a lot of capital. They have a high minimum deposit limit (about $ 10,000), which allows you to trade with standard lots. These account types are usually ECN accounts as well, which means they allow you to trade directly in the market.

It is important to note that professional accounts for EU clients are slightly different. There are leverage limits for ordinary retail traders. If you would like to gain access to higher levels of leverage, you can apply to open a professional account in the EU. In this situation, you will need to verify your trading experience and credentials. This could be taking a test or submitting documentation.


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