Assuming on the basis of services supplied by brokers, the present modernized Forex market is formulated by a trade system where the exchange of currency, contacts for differences, metals etc. occurs. The increasing and decreasing rates at the cent-accounts are similar to the classic trade at Forex market. Although seemingly the present market seems hard yet after trading in it for some time, you’ll hold a different opinion as things have been oversimplified. If you choose cent accounts then rest assured that prosperous activities are reaching to you and very soon investors would come to you all prepared for entrusting you with the management of their accounts worth thousands of dollars.
In case you are just starting to trade then you should preferably start of from the cent-accounts. A high percentage of traders at the mini-Forex begin with merely 10 cents. The point to consider is that mini-Forex is essentially similar in working to the Forex market at large.
These cent-accounts can be employed while shifting from demo accounts to real ones. Losses in demo accounts and not linked to your wallets at all. But the psychological trade state in demo accounts is not a plus point. Being sure you will not actually lose any money, you build up confidence enough to be dealing deep into financial trade, and you may still be ok after collecting a million and losing it in a day. So for actually learning how to chain two trade evils, greed and fear, you must get the actual feel of trade in an actual market where actual money is involved. This is the reason why the cent-accounts are perfect to start with for the new traders. In case of unfavorable trends, you can minimize the risks of loss and continue to with the training process. With cent-accounts your victories might be small generating small profits but the effect would be very pleasing. Naturally with points of 1 cent cost, the expectations from profits must be rational. Employ these cent-accounts only for studying market and its movements as well as to experiment trade systems and strategies on it.
On basis of the above discussion, the idea to drive home was that all traders starting to trade can invest small funds and learn the actual trade skills using actual accounts. This would essentially reduce the risks of being new traders. The most occurring mistakes of new traders that cost them huge losses would not hinder in the professional trade path when using cent-accounts.
But, presently due to overvaluation of traders at the Forex market, brokers generally try to reduce supplying the cent-accounts, thus necessitating the traders to use dollar-accounts, as was the classical case with Forex market.
Thus, it is can be concluded that cent-accounts serve as perfect launching platforms giving opportunities to traders of leaning the essential skills and gaining trade experience in a realistic manner where the trader can estimate his/her self-potential for working in real market.