Why should I trade on a cent account? | Forex Factory

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Why should I trade on a cent account?

  • Poll

  • Would you rather trade on a cent account or a demo account?
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  • #1
  • First Post: Edited 6:02am Feb 13, 2022 5:16am | Edited 6:02am
I thought a good idea is to advise rookies to trade on cent accounts (i.e. micro accounts). Let's note the advantages:
You can start with as low as $10 or $20 instead of $1000.
You are trading with real money and the emotions attached to that.
You get a clear view of your wins and losses.
You can build a personal track record.
You can monitor the price action while gradually educating yourself in trading.
You can test strategies, systems and techniques.
Once you are ready to scale up your account, you can do that without fear.
There is one main disadvantage: you have to register with a broker that offers micro-accounts; only a few do.

Feel free to add your own thoughts or suggestions.
Risk Management is of utmost importance!
  • #2
  • Feb 16, 2022 4:55am Feb 16, 2022 4:55am
I agree and there are loads of brokers offering cent accounts
  • #3
  • Feb 25, 2022 11:06pm Feb 25, 2022 11:06pm
I think, which traders are unable to concentrate on their demo practice; then they should go for the cent type account! Basically, in demo the capital is all about the virtual money, that’s why a number of new traders can’t concentrate here! But in my learning period, I used only demo! I didn’t need to use Cent type live account since I tried my level best on demo account!
  • #4
  • Mar 2, 2022 4:17am Mar 2, 2022 4:17am
Quoting Maximilian80
I think, which traders are unable to concentrate on their demo practice; then they should go for the cent type account! Basically, in demo the capital is all about the virtual money, that’s why a number of new traders can’t concentrate here! But in my learning period, I used only demo! I didn’t need to use Cent type live account since I tried my level best on demo account!
It depends on one's character. There is no doubt that many of the advantages that a cent account retains can be found in a demo account. For how long have you traded on a demo account?

Quoting shirly1989l
A feature of a cents account is that you can expand your position, for example, $100 can be converted into 10,000 cents, so that when trading, the position is large and the number of lots can be controlled
Precisely! If one has $200 to start with, it will not be wise to go for a standard account, because you will find yourself using a big chunk of your available margin.

Risk Management is of utmost importance!
  • #5
  • Mar 3, 2022 1:18am Mar 3, 2022 1:18am
I feel very good about this suggestion. The penny account is also a firm offer. You can hone your technology. The key is your mentality.
  • #6
  • Mar 3, 2022 4:32am Mar 3, 2022 4:32am
Quoting autocashback
I feel very good about this suggestion. The penny account is also a firm offer. You can hone your technology. The key is your mentality.
Certainly, trading demands self-control and one being in its right mind.
Risk Management is of utmost importance!
  • #7
  • Apr 6, 2022 3:41am Apr 6, 2022 3:41am
Cent account is quite useful if you want to start with smaller funds so that you do not fall into bigger risk of wiping out the account. Plus micro account is the one I find most preferable, as compared to cent account.
  • #8
  • Apr 17, 2022 12:19pm Apr 17, 2022 12:19pm
Quoting noonmoon
Cent account is quite useful if you want to start with smaller funds so that you do not fall into bigger risk of wiping out the account. Plus micro account is the one I find most preferable, as compared to cent account.
Sadly, not that many offer cent and/or micro accounts. If one was to trade with a standard account then one must invest at least a thousand.
Essential is for people to at least trade on a demo account, otherwise, losses will be seriously painful.
Risk Management is of utmost importance!
  • #9
  • Apr 21, 2022 6:30am Apr 21, 2022 6:30am
Quoting Lionism
{quote} If not all traders offer cent accounts then they can also prefer using micro accounts. They are also small trading accounts and are less risky.
I don't understand your message.
Risk Management is of utmost importance!
  • #10
  • Apr 28, 2022 10:40am Apr 28, 2022 10:40am
Well, firstly, because this is already a real trading account. Between the demo and real account of the same broker, there is a big difference in terms of order execution and delays. On a cent account, your emotions are already starting to show up, and they need to be controlled, unlike demo accounts. Thirdly, very often cent accounts are technically no different from standard ones, except that dollar = cent. Fourth, you can withdraw profit from a cent account, feel the taste of popeda, and at the same time not risk a lot of capital.
  • #11
  • Jun 7, 2022 5:31am Jun 7, 2022 5:31am
Quoting evreg
Well, firstly, because this is already a real trading account. Between the demo and real account of the same broker, there is a big difference in terms of order execution and delays. On a cent account, your emotions are already starting to show up, and they need to be controlled, unlike demo accounts. Thirdly, very often cent accounts are technically no different from standard ones, except that dollar = cent. Fourth, you can withdraw profit from a cent account, feel the taste of popeda, and at the same time not risk a lot of capital.
Thank you for your post.
Around 66% of voters have chosen a cent account over the demo account.
Risk Management is of utmost importance!
  • #12
  • Jun 27, 2022 11:55pm Jun 27, 2022 11:55pm
Hi All,

Anybody can share which cent broker you used ?

I'm using roboforex

I know other broker FBS and Exness any experience with this broker ?
  • #13
  • Jun 28, 2022 4:14am Jun 28, 2022 4:14am
Quoting Jippykaze
Hi All, Anybody can share which cent broker you used ? I'm using roboforex I know other broker FBS and Exness any experience with this broker ?
Hi! I traded with FBS before. My advice is to use an electronic wallet like skrill.
I am saying that because if you use card payment then you will have to withdraw one-on-one. That is if you make 3 deposits each of $2 then you will have to make 3 withdrawals. Hope that helps.
Risk Management is of utmost importance!
  • #14
  • Jun 28, 2022 4:20am Jun 28, 2022 4:20am
Quoting RCtrader
{quote} Thank you for your post. Around 66% of voters have chosen a cent account over the demo account.
Od course cent account is better for first choince, this is still real own money and that teach new trader tolarance to money even if it is 10 or 20 dollars
People don't plan to lose. They lose because they don't plan.
  • #15
  • Jun 28, 2022 1:50pm Jun 28, 2022 1:50pm
You need trade enough to feel pressure. You need to get used to it...you never really completely do. So it needs to be a component to trading.
THESE PEOPLE WITH COLORED BADGES ARE NOT PROFESSIONAL TRADERS
  • #16
  • Jun 29, 2022 6:21am Jun 29, 2022 6:21am
My vote goes for a demo account.
1. All beginner traders are losing money, so why should you put real money into your account?
2. The chances that you will make profits on a demo account are much higher. Prove to yourself that you can actually trade consistently profitable.
3. There are almost no emotions on a demo account and that's a huge advantage. You can clearly analyze the trades you are taking without all of this emotional roller coaster. When you are having a loss you are not thinking that you lost money, but rather why you took a trade. So you are focusing on a process, not the money.
4. On a demo account, you may truly feel how to trade like a professional. When you can clearly analyze the chart, analyze the trades that you did, thinking not about the money but about the charts.
5. It will take less time to develop a strategy on a demo account.
6. If you can trade consistently profitable on a demo, that's a huge advantage. When you shift into real money, you actually know that you can trade profitable. If you where trading on a demo profitable and now with real money you are trading at a loss, then you can analyze why. Now you can work on your emotions. Maybe you are overtrading, you are missing trades because of a fear, you are not holding trades long enough, etc... Point is that you know what you were doing on a demo and what you are doing on a real account and find out why you are losing money on a real account.
7. With a cent account you have real money on the line. It adds emotions. It makes trading harder. It makes the learning curve much longer. So why should you add all these problems to your trading if you will actually not make any reasonable profits from these 10 usd?

Trade using demo account. After a few months you will have good and bad trades. At some point you will understand what you are doing, so you will only focus on good trades. Now you are taking good trades, consistently making money on a demo. Time to open a real account. Open a standard account (not a cent). It's a high chance that you will start to lose money on a real account, but now you have a background on a demo where you were profitable. So you can compare your trading and see what mistakes you are doing that cause these loses on a real account. Work hard to resolve these emotional issues.

"It's a Long Way to the Top (If You Wanna Rock 'N' Roll)" (c)
  • #17
  • Jun 30, 2022 4:12pm Jun 30, 2022 4:12pm
You are going to blow up a real account.. many experience the pain at that moment.. otherwise it is constant struggle till you get somewhere. So it is better to blow up a cent account than a standard account. With standard account you have more excuse to lean on plus you will experience reality shorter. But then again there are exceptions who go from demo to live pretty successfully. Its not how much you loose it is more of how disciplined you are and how quick you spot your mistakes and change it.
  • #18
  • Jul 1, 2022 3:24am Jul 1, 2022 3:24am
Quoting BlaBlaFx
My vote goes for a demo account. 1. All beginner traders are losing money, so why should you put real money into your account? 2. The chances that you will make profits on a demo account are much higher. Prove to yourself that you can actually trade consistently profitable. 3. There are almost no emotions on a demo account and that's a huge advantage. You can clearly analyze the trades you are taking without all of this emotional roller coaster. When you are having a loss you are not thinking that you lost money, but rather why you took a trade....
Hi!

Thank you for your very extensive reply. The points you made are valid and I am sure many rationalize in the same manner.
Risk Management is of utmost importance!
  • #19
  • Nov 14, 2022 3:58am Nov 14, 2022 3:58am
Quoting Fxproist
You are going to blow up a real account.. many experience the pain at that moment.. otherwise it is constant struggle till you get somewhere. So it is better to blow up a cent account than a standard account. With standard account you have more excuse to lean on plus you will experience reality shorter. But then again there are exceptions who go from demo to live pretty successfully. Its not how much you loose it is more of how disciplined you are and how quick you spot your mistakes and change it.
I agree with you. One has to be disciplined and if not successful try to identify the downsides to the used strategy and/or trading habit.
Risk Management is of utmost importance!
  • #20
  • Nov 26, 2022 3:25am Nov 26, 2022 3:25am
Quoting RCtrader
I thought a good idea is to advise rookies to trade on cent accounts (i.e. micro accounts). Let's note the advantages: You can start with as low as $10 or $20 instead of $1000. You are trading with real money and the emotions attached to that. You get a clear view of your wins and losses. You can build a personal track record. You can monitor the price action while gradually educating yourself in trading. You can test strategies, systems and techniques. Once you are ready to scale up your account, you can do that without fear. There is one main...
I chose the cent accounts for the small deposit when I first started one trade (XAUUSD) for one month as I could not afford to burn my trading deposit. Once I am familiar with trading strategy, I internal transfer funds from cent account to standard account when the trading balance is above $250 and leave $100 for cent account. I am trading on both trading accounts together.
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