Beginner currency trading is a minefield where a lot of money can easily be lost. New traders usually come into the market with dreams of making it big, but any attempt to make a lot of money in a short time is likely to result in losses in forex trading just as in any other field. Starting small is the only way to become successful in the long term, at least for most beginners. So starting out with a micro forex account can be the best way to go.

It sounds counterintuitive to suggest that a new trader will make more money with a tiny account balance of $100 or even less, but when you consider how much it is possible to lose by trading the bigger mini or standard lots, you will see that this makes sense. The important point is not to think that just because the account is small, you can take big risks with it.

Opening a micro forex account for your first foray into beginner currency trading is a valuable way to start even if you have a lot more money available. In fact, any forex trader should be prepared to risk at least $500 to start, even with a micro account and even if you do not intend to put it all into the account right away. It is best, in fact, to keep some back.

Starting with a micro account does not mean that you can skip the demo stage. It is important to get to know both your system and your broker’s platform in demo mode before you go live. This cuts down on the chances of making technical mistakes or mistakes in the implementation of your system in your real money account, provided of course that the platform remains the same in demo as for the real market.

To get the most from a micro forex account it is important to have a system that does not involve big risks. In most cases you will be using high leverage on the account or trading more than one lot, so that you maximize the amount that you can make from winning trades. This means that any loss is likely to have a big impact.

Therefore you need a system that only makes small losses. Do not choose a system with a very high win rate because it is likely that the losses, when they do occur, will be heavy. This could wipe out a trader using maximum leverage in a micro account. Instead, look for a system with more stable results. Of course, no forex system is completely predictable, but statistically a small account balance will have a better chance of surviving that way.

Once you are making steady profits with a micro account you can gradually add more funds to your balance and increase the number of lots that you commit in each trade, until eventually you are ready to move to a mini forex lot size which is ten times bigger. Used in this way, a micro forex account can be the best way to get started with beginner currency trading.