The foreign exchange (Forex) market is the largest financial market in the world, with trillions of US dollars changing hands every day. To start trading Forex, you need a trading account—and there are several types to choose from. Each account type comes with its own advantages and trade-offs.
Choosing a reliable broker is only the first step. If you’re still unsure how to pick a broker, we’ve covered everything you need in How to Choose a Forex Broker in 2025: The Complete Investor’s Guide. Once you’ve selected a broker, the next crucial step is choosing the account type that fits your goals, risk tolerance, and capital. This foundation can significantly influence your long-term success.
This article compares the most common Forex account types in detail to help you decide wisely.
Popular Forex Account Types
1) Standard Account
Often called a Classic account today, this is the traditional Forex account.
- Contract size: 1 standard lot = 100,000 units of the base currency
- Pip value (for USD-quoted pairs like EUR/USD): ~USD 10 per pip
- Pros: Precise pricing, minimal rounding issues, market orders can route directly without requotes, and leverage can be high (often up to 1:1000). Suits traders with larger capital who seek bigger returns and can accept higher risk.
- Cons: Harder to manage risk because minimum position sizes are larger.
2) Mini Account
- Contract size: 1 mini lot = 10,000 units
- Pip value (USD-quoted pairs): ~USD 1 per pip
- Pros: Finer control over position sizing and margin usage, better risk management. Many brokers now offer mini conditions close to standard accounts. Good for traders who want tighter risk control with less capital while keeping returns relatively attractive.
- Cons: None major beyond smaller scale versus standard.
3) Micro Account
- Contract size: 1 micro lot = 1,000 units
- Pip value (USD-quoted pairs): ~USD 0.10 per pip
- Pros: Well-suited to beginners due to very small capital requirements (some platforms allow starting with only a few hundred THB). Leverage is typically up to ~1:200, making risk easier to limit.
- Cons: Profits are small relative to effort; spreads may be wider and liquidity lower than on larger accounts.
4) Cent Account
- Contract size: 1 cent lot = 100 units
- Pip value: ~USD 0.01 (1 cent)
- Pros: Open with just a few dollars; very high leverage is often available (up to ~1:1000). Useful for testing new tools/strategies with real execution while risking tiny amounts. Great for beginners who prefer not to use demo.
- Cons: Frequently offered by brokers outside top-tier regulation, so trust and execution quality can vary. Orders may be slower, and not all flow is routed to the real market.
5) Demo Account
A simulated environment using virtual funds, mirroring live prices and tools.
- Pros: Perfect for practice, platform familiarization, and strategy testing—without risking real money.
- Cons: You can’t withdraw profits; slippage and emotional pressure aren’t realistic.
6) ECN Account (Electronic Communication Network)
Orders are routed directly to the interbank market with automated matching. Commissions apply.
- Leverage: Commonly from 1:1 up to ~1:500; some start from as little as USD 50.
- Pros: Access to deep liquidity, high pricing transparency, minimal broker intervention.
- Cons: Slippage can occur; spreads can widen in volatile markets. Best for traders with reasonably larger capital.
7) STP Account (Straight-Through Processing)
Orders are forwarded to liquidity providers or STP brokers without dealer intervention.
- Pros: Typically faster execution than market-maker models and no dealing-desk conflict; leverage can be higher than ECN.
- Cons: May still be a touch slower than pure ECN at times; spreads can vary; slippage remains possible.
8) PAMM Account (Percent Allocation Management Module)
Investor funds are pooled into sub-accounts linked to a money manager’s master account. Profits are shared by a pre-agreed ratio (e.g., 50–50).
- Pros: Hands-off for investors; accessible even with smaller capital; you can set investment limits and drawdown thresholds.
- Cons: You rely entirely on the manager’s skill and cannot control entries/exits. If losses occur, funds can be tied up during drawdown.
9) MAM Account (Multi-Account Manager)
Similar to PAMM but gives investors more control.
- Pros: You can intervene—close trades, place new orders, or adjust risk; lower leverage can be used; minimums can be very low.
- Cons: Intervening can disrupt the manager’s strategy; adding your own trades can cause margin calls. Beware of managers showcasing small accounts to create appealing stats that may not scale.
10) Copy Trading Account
You choose top-performing traders to automatically copy their trades. You still control your own account.
- Pros: Platforms rank traders by multiple factors—performance, own capital, track record length, commission, and risk management—so you have data to decide. You can copy partially, learn from strategies, and earn while observing.
- Cons: Over-tweaking by the investor can hurt results for both sides. New signal accounts may rank lower initially and not reflect true potential yet.
11) Swap-Free Account
Overnight interest (swap) is not charged; a fixed fee may apply instead.
- Pros: Hold positions overnight without swap expenses; anyone can request this type, though special approval is usually required.
- Cons: The fixed fee can be slightly costlier than typical swaps. Always confirm your broker supports swap-free terms on the instruments you trade.
Bottom Line
The right Forex account type depends on your capital, experience, and trading style. Above all, open accounts only with trustworthy, well-regulated brokers—especially important for new Thai traders weighing pros and cons across account types.
If you’re starting with limited funds, consider Micro or other small-size accounts first to learn risk management. As your skills and confidence grow, scale up to larger accounts step by step.
For Thai investors, popular options include Exness, XM, and FBS, each with distinct strengths:
- Exness: Strong transparency; offers Cent accounts; minimums from USD 1.
- XM: High leverage; provides Micro and Standard accounts.
- FBS: Supports multiple platforms; minimum deposits from USD 1.
Each broker has unique advantages. Do your due diligence before signing up, keep learning, and adjust your account type as your capabilities evolve to improve your chances of sustainable success in Forex.
Don’t Forget Broker Trust & Licensing
Even the “perfect” account type won’t help if your broker isn’t trustworthy.
One of the most important credibility checks is the regulatory license—and not all licenses offer the same level of protection. To understand the differences across regulators and protection levels, see 5 Tiers of Forex Broker License Credibility.