What is a Cent Account, which forex brokers have them?
A cent account is a micro account for trading little quantities of instruments and any deposit you make is converted into US Cent currency hence the name cent account.
if you deposit $1 into a cent account, your account balance will be 100 cents and so forth.
On a cent account, your lot size is limited to maximum of 1,000 units so you cannot trade more than 1,000 units of any instrument.
The reason for this lot size restriction is to manage risk and keep it low, as cent accounts are meant for beginners who just got off using demo accounts and want to try the real thing albeit with minimal risk exposure.
Experts can also use cent accounts to test out high risk strategies while risking little money.
Brokers like HFM, Exness, FBS, Just Markets, Headway & RCG Markets; all offer cent accounts.
A cent account is a micro account for trading little quantities of instruments and any deposit you make is converted into US Cent currency hence the name cent account.
if you deposit $1 into a cent account, your account balance will be 100 cents and so forth.
On a cent account, your lot size is limited to maximum of 1,000 units so you cannot trade more than 1,000 units of any instrument.
The reason for this lot size restriction is to manage risk and keep it low, as cent accounts are meant for beginners who just got off using demo accounts and want to try the real thing albeit with minimal risk exposure.
Experts can also use cent accounts to test out high risk strategies while risking little money.
Brokers like HFM, Exness, FBS, Just Markets, Headway & RCG Markets; all offer cent accounts.
Hi Vicky, to answer your question, a cent account is domiciled in the US Cent currency only and trading on this account is restricted to micro lots only, so technically a cent account is a micro account that comes in US Cent currency.
Cent accounts are very useful not just for beginners but also for experienced traders who want to trade instruments with very high margin and spreads.
For example take an instrument like BTC/USD or WTI Oil, the initial margin & spreads are very high but because on a cent account 1 lot = 1,000 units, you can afford to trade 0.01 lots of 1,000 units hence the initial margin drops making it affordable.
Personally I was never able to trade WTI Oil on Standard Accounts because I had to deposit such a high initial margin, but when I tried it on a Cent Account, the initial margin was very affordable.
Hope this answers your question, feel free to get back.
its an account where trading large volumes is forbidded. Lots of people tend to hate on cent accounts because the word "cent" rubs off the wrong way on their ego and on their dreams of becoming millionaires through forex trading 🤣.
Hate to break it to such people but you cannot become a millionaire trading forex and yes cent accounts are for you too!
A cent account is basically used to try out untested strategies in a live market in such a way that any losses you sustain during the trial will be bearable. This is also the same reason why beginners should use cent accounts.