Mini Forex Accounts

Mini forex accounts describe an account within a forex brokerage that allow the customer to participate in trading FX with fractional minimum account size to the “real” forex accounts.

The mini FX accounts are possible due to the fractional trading sizes, with one mini lot being a fraction of one actual lot in the interbank forex market.

This way, the margin requirement and account size can be fractional in size as well.

Trading with Mini Forex Accounts

Because the trades placed with mini FX accounts are placed outside of the interbank forex market (due to their size), the marketmaker for the mini trading lots is usually the same brokerage that you have the mini forex account with.

But, because the brokerage can hedge risk effectively in the interbank market, they can (usually) also offer comparative spreads and comparative market prices to the actual forex markets.

However, you’ll find differences in rollover rates (rates paid to or subtracted from an account held overnight) that will affect your trading performance. Therefore, it usually pays off to compare mini FX accounts to find the best rates on overnight positions (in addition to the most competitive spreads).

Mini Forex Accounts – Providers

With Internet, the popularity of mini FX accounts has skyrocketed. In fact, many stock investors seem keen to spread their risk by taking positions on the forex market with mini FX trading accounts.

There are tens of providers available for mini FX accounts. These providers differ in, for example, overnight rates, trading spreads, and maximum leverage rules, so you should take your time comparing the offers.

In addition to comparing the mini forex accounts, compare the trading platforms available. There are huge differences in the ease of use and interface design between trading platforms.

The choice of a platform may, in fact, affect your trading returns (you have to have the ability to use the platform correctly and quickly), so choose one that you’re comfortable with.

Currency Trading Information

Currency trading information needs are various. Depending on your particular strategy, you might need real-time charts, news feed, and real-time third party analysis.

The most rapidly expanding group of currency traders is those using mini forex accounts and other online forex accounts with smaller account sizes.

The high-end FX trading information sources, such as Bloomberg and Bridge, are very much out of the small investors price range. However, for larger corporations and individuals with larger accounts, these tried and trusted systems are the obvious choice.

The affordable choices for information sources are free online news feeds, your brokerage's news feed and analysis tools attached to the software platform, and other online resources.

Affordable Currency Trading Information Sources

If you don’t yet have a brokerage, chances are that you can get a variety of information and analysis tools in the package, at least if you go with one of the online brokers.

Many online brokers add real-time news feed, real-time charts, email alerts, and (technical) analysis tools in their platform package. Not all do, so you should check the details before signing up with a brokerage.

Other affordable information sources include such online web sites as INO.com, Traders.com, Bloomberg and Reuters web sites.

You can also sign up with one of the online companies offering forex analysis for a fee, such as OzForex or Investica. Many of these services send, for example, end-of-day analysis packages via email.

Professional Currency Trading Information Sources

For larger corporations and individuals with larger forex accounts, the professional systems are a natural choice. Companies offering professional platforms include

• Reuters
• Bridge (Reuters company)
• Bloomberg
• ILX Systems (Thomson company)
• Primark Corp.
• FactSet Research Systems

The assuring aspect of purchasing one of the professional systems is that you know that you’re at par with the dealing room traders, who get the exact same information from the same providers. This might be important especially if you day-trade forex products.

London is the World's Biggest Forex Center

The new report from Bank of International Settlements (BIS) shows that London's financial center accounted for 34.1 per cent of daily global forex turnover, which stands at about $3.2 trillion in April 2007.

The figure also translates to some 80 per cent increase in average daily turnover in the UK foreign exchange market since the beginning of April 2004.

There are several reasons why London's turnover has exceeded that of New York's.

For one, many analysts cite higher levels of participation from retail investors through the internet, private banks and family offices as one reason.

In fact, many think the retail sector will remain one of the key drivers of the future growth of the foreign exchange market in London and push FX market instruments into a major asset class held by households.

Another reason for London's rise is location. It has the advantage of covering both Asian and American time zones.

Also, many bigger European hedge funds that operate in the FX market, do so from their London headquarters.

Singapore Forex Trading at 7-Year High in 2004

According to the country's central bank, Singapore's forex trading activity was at a 7-year high in 2004.

In U.S. dollars, the trading activity was at USD 154.9 dollars in 2004, making Singapore the fourth-largest forex trading center in the world.

According to the central bank, these results reflect the surge in global treasury activities and further strengthen Singapore's position as one of the leading treasury centers in Asia.

There is also great growth in forex trading related professionals, particularly in new growth areas, including derivative products.

In fact, according to the Singapore Central Bank, the number of treasury professionals rose by 5.5% in 2004 from 2003.

Forex for Begginers

Forex market trading consists of a huge volume of trades everyday but in the past this trading was only available to banks, huge corporations and currency dealers.

There was large minimum business size requirements and very strict financial requirements to be allowed to trace on the Forex market at that time. In 1998, it was made available to the general public to be allowed to trade and take advantage of the market’s extreme liquidity and strong currency exchange rates trends.

The major currencies that are traded on the Forex Market are the US dollar, the Euro, the Japanese yen, the British pound, the Swiss Franc, the Canadian dollar and Australian dollar.

The US Dollar is the most traded currency on the Forex Market. It is easier to begin trading using a currency that you are familiar with, if you happen to live in one of the countries that has currency on the market, because you can watch the newspapers and be able to judge the strength of your currency.