The modern Forex, on the assumption of list of services, provided by brokers, is a system of exchange trade of currency, metals, contacts for difference, etc. The work with rates increase and decrease at cent accounts does not differ from a classic work at real Forex market. At first sight it seems that this structure is very difficult, but having worked a little, you understand that everything is more simply. If you worked out in cent accounts, be sure, that the door in successful activity is slightly opened for you, and investors will be ready to entrust you the management of thousand dollars accounts.

If you are at the beginning of trader’s way, you should start from cent accounts. A lot of brokers offer to trade at mini-Forex starting with 10 cents. The point is that work at mini-Forex does not have essential differences from the work at “large” market.

Cent account can be used as intermediary from demo to real. Demo-account is attractive by the fact that any losses which you will, probably, have, in no way affect your wallet. However, there is one significant disadvantage, connected with the psychological part of trading. Being confident about your monies safety, you will not be able to plunge into the whirlpool of financial business, where on the next day after you have won a million you can lose everything. In order to overcome two main enemies of trader the fear and greed, you just need to feel the trading process, and that can be done only with real money at the real market. That is why the intermediate trading process at the cent account is the optimum alternative for the newbie. Minimizing the risks of losses in the case of trend reversal to the unfavorable side, you can continue the training at cent account. At that your small victories will be rewarded with the small but very pleasing profit. Of course, when the cost of point is 1 cent, you should not expect the huge earnings. Use the cent account only in order to study the market with its sometimes sharp movements, as well as for experiments with trading strategies and systems.

On the assumption of all mentioned above, the idea of cent accounts is that almost each beginning trader can, investing the small amounts of assets, learn the work skills with the real accounts. This is necessary for reduction of newbies’ potential risks. The major financial mistakes, which a lot of novices make working with the cent accounts, are minimized and can not be a barrier at the beginning of the trader’s professional way.

However, today because of the situation that market is oversaturated with traders a lot of brokers strive to decrease as much as possible the supply on the cent accounts, forcing in this way all traders to work with dollar accounts, as it was at the very beginning of Forex market development.

In such way, it can be said that cent accounts is a perfect launch platform, which gives an opportunity to any trader to learn all necessary skills and gain trading experience, realistically assessing his/her own possibilities for the real work at the currency market.

Added by Svetlana Milyushko,
InstaForex Clients’ relationship manager