Currency Trading Practice Accounts
Forex Currency Trading?
I am looking into opening an account with forex and I had a few questions.
I have on of their practice accounts and I like it but some times the exchange rates do not change. The rates freeze up from time to time. Why is this? Is the market closed at some time? Also is this just with my practice account or does this happen with live accounts too.
Another question is what is the minimum investment that you can start an account with and be able to trade? I know its like $250 or something, but when you trade, the smallest amount is like $100,000. I know that with leverage that can be $1,000 but is there any way to get that lower?
Thanks for any responses!
A practice acct may not exactly reflect current prices. We expect it to be perfect and same, but is in fact very low on the list of priorities of the provider. It is close enough to give you an accurate accounting of what would actually happen in real time, but sometimes not, if the quotes are bundled or delayed, or other to reduce cost of providing the quotes.
Live quotes are usually fluctuating, even during the slowest of times. Just for reference, watch during times of high volume, like when the European and American markets overlap, between 8:00 am and 11:00 am EST. The highest volume will be immediately after a big news release.
The $100,000 amount you are looking at, reflects one standard contract. But you would need to trade either a mini or probably a micro contract with such a small account value. One mini contract would be $10,000, and now there is a micro contract reflecting $1,000 of currency. You can literally trade any amount you wish, within the limitations of what is offerred. Otherwise, you would not be able to start with only $250.
FX Futures Practice Account — Infinity AT™
