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Risk warning: CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. Between 69% and 89% of retail investor accounts lose money when trading CFDs with these providers. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The five main forex account types
Every forex broker offers at least one type of trading account, and most offer several. Choosing the wrong one affects your spreads, leverage, minimum deposit, and ultimately your profitability. Here's a quick overview of what you'll encounter at EU-regulated brokers:
Type 1
Demo
Min deposit$0
Real money?No — virtual
Best forAll beginners
Start here
Type 2
Micro
Min deposit$5 – $50
Lot size0.001 lots
Best forNew live traders
Beginner
Type 4
ECN/Raw
Min deposit$200 – $1,000
Spreads0.0 – 0.2 pips
Best forActive traders
Advanced
Type 5
Professional
Min deposit€10,000+
LeverageUp to 500:1
Best forQualified traders
Pro only
Demo accounts — practise without risk
A demo account simulates live trading using real market prices but virtual money. Your profit and loss figures are not real, but everything else — spreads, execution speed, platform features, charting tools — mirrors what you'd experience with real capital.
Every beginner should spend at least 4–8 weeks on a demo account before trading live. Here's what you learn on demo that you can't learn from reading:
- How to place, modify, and close trades on the platform
- How spreads and commissions affect your P&L in real-time
- How to set and manage stop-losses and take-profits
- Whether your strategy actually works before real money is at stake
Tip: Treat your demo account as if it is real money. Many traders take demo too casually and then discover their emotions change completely when they switch to live. Practise the same position sizes you intend to use live — it prepares you for the psychological side of trading.
Most EU-regulated brokers offer unlimited demo accounts with no expiry. Exness, AvaTrade, and XM all offer demos that you can keep open indefinitely alongside your live account.
Micro accounts — start with real money safely
A micro account lets you trade with real money using very small position sizes. Where a standard lot is 100,000 units of a currency, a micro lot is 1,000 units — 100 times smaller. Each pip movement on EUR/USD is worth approximately $0.10 instead of $10.
Example: You open a 0.01 lot EUR/USD trade with a 20-pip stop-loss. If the trade hits your stop, you lose $0.20. On a standard account trading 1 lot, the same 20-pip stop-loss would cost $200. The micro account lets you learn with real money without the risk of significant losses.
Micro accounts suit traders who:
- Have completed demo trading but want a low-risk live introduction
- Want to test a specific strategy with real money before scaling up
- Are depositing less than $200 to start
Warning: Some brokers label "cent accounts" as micro accounts. A cent account converts your deposit into cents so position sizes are even smaller — these are mostly offered by unregulated offshore brokers. Stick to CySEC or FCA-regulated brokers offering genuine micro accounts.
Standard accounts — the most common choice
The standard account is the default retail forex account. It typically offers:
- Minimum deposits of $100 to $500
- Full access to lot sizes from 0.01 to 100 lots
- Spreads from 0.6 to 2.5 pips on EUR/USD with no separate commission
- All major and minor currency pairs plus CFDs on indices, commodities, and shares
- ESMA leverage caps: 30:1 on major pairs, 20:1 on minors (EU retail clients)
Standard accounts suit traders who trade position or swing strategies (not scalping), prefer simple all-in spreads with no commission invoice, and are depositing $200 to $2,000 to start.
ECN accounts — for active and experienced traders
An ECN account routes your orders directly to liquidity providers — banks and other market participants — without a dealing desk in between. The result is tighter spreads and faster execution, with a per-trade commission charged separately.
| Feature | Standard account | ECN account |
|---|
| EUR/USD spread (typical) | 1.0 – 1.5 pips | 0.0 – 0.2 pips |
| Commission per standard lot | None | $3 – $7 per side |
| Total round-trip cost (1 lot) | $10 – $15 | $6 – $14 |
| Execution model | Market maker / STP | Direct market access |
| Best for | Swing / position traders | Scalpers / day traders |
| Typical min deposit | $100 – $500 | $200 – $1,000 |
Cost calculation tip: If you trade 5 standard lots per week on EUR/USD: Standard (1.2-pip spread) = $60/week. ECN (0.1-pip spread + $7/lot commission) = $5 + $70 = $75/week. For lower-volume traders, ECN can cost more — calculate your specific volume before switching.
Professional accounts — for qualified traders only
EU regulations (ESMA) cap retail trader leverage at 30:1 on major forex pairs. Professional accounts are exempt from these caps, allowing leverage of up to 500:1 — but qualifying requires meeting strict criteria set by the broker under MiFID II.
To qualify for a professional account, you must meet at least two of these three criteria:
- Traded significant-size transactions at least 10 times per quarter over the past four quarters
- Financial instrument portfolio (including cash deposits) exceeding €500,000
- Worked in the financial sector in a professional position requiring forex knowledge for at least one year
Important: Professional status removes key retail protections — including negative balance protection and access to the Financial Ombudsman. Do not opt for professional status just to access higher leverage. Most retail traders do not need it and it significantly increases risk.
Side-by-side comparison table
| Account type | Min deposit | Lot size | EUR/USD spread | Commission | Best for |
|---|
| Demo | $0 | Any (virtual) | Live spreads | None | All beginners |
| Micro | $5 – $50 | 0.001 – 0.1 lots | 1.0 – 2.0 pips | None | New live traders |
| Standard | $100 – $500 | 0.01 – 100 lots | 0.8 – 1.5 pips | None | Swing traders |
| ECN/Raw | $200 – $1,000 | 0.01 – 100 lots | 0.0 – 0.2 pips | $3–$7/lot | Active traders |
| Professional | €10,000+ | 0.01 – 1,000 lots | 0.0 – 0.5 pips | Varies | Qualified traders |
How to choose the right account type
1
Start with a demo account (always)
Open a demo account with your chosen broker first. Learn the platform, test your strategy, and get comfortable with the tools. It costs nothing and prevents costly beginner mistakes.
2
Open a micro account for your first live deposit
When ready for real money, start with $25–$100 on a micro account. Trade for 2–3 months and experience the psychology of live trading before upgrading.
3
Graduate to standard when consistently profitable
Move to a standard account after 3+ months of consistent positive results on micro. Increase position sizes gradually — emotions change significantly under higher stakes.
4
Consider ECN only if you trade frequently
Calculate your true costs at your current trade volume before switching. If tighter spreads genuinely reduce total transaction costs, ECN is worth it. For infrequent traders, the commission structure may cost more overall.
EU-regulated brokers by account type
The following brokers are regulated by CySEC, FCA, or equivalent EU authorities and accept retail EU clients under ESMA consumer protections including negative balance protection.
| Broker | Demo | Micro | Standard | ECN | Min deposit | Regulator |
|---|
| Exness | ✓ | ✓ | ✓ | ✓ | $10 | CySEC, FCA |
| AvaTrade | ✓ | — | ✓ | — | $100 | CySEC, CBI |
| XM | ✓ | ✓ | ✓ | ✓ | $5 | CySEC, ASIC |
| Pepperstone | ✓ | — | ✓ | ✓ | $200 | FCA, CySEC |
| IC Markets | ✓ | — | ✓ | ✓ | $200 | CySEC, ASIC |
Ready to open your first account?
Exness offers demo, micro, standard, and ECN accounts from $10 minimum — all regulated by CySEC. Open a free demo first, then upgrade when you're ready.
69–89% of retail CFD accounts lose money. Capital at risk.
Frequently asked questions
What is a demo forex account?
A demo account is a simulated trading account funded with virtual money. It connects to real market prices in real time but no actual money is at risk. Use it to practise strategies and learn the trading platform before committing real capital.
What is a micro forex account?
A micro account lets you trade with very small position sizes — typically 1,000 units of currency (micro lots). Each pip on EUR/USD is worth $0.10, making it ideal for beginners who want real-money experience with minimal financial risk. Minimum deposits are usually $5–$50.
What is a standard forex account?
A standard account is the most common retail forex account type. It allows trading from 0.01 lots upward with spreads from 0.6–2.5 pips and no separate commission. Suitable for traders with at least some live experience and a deposit of $100–$500.
What is an ECN forex account?
An ECN account connects you directly to liquidity providers without a dealing desk in between. Spreads can be near zero (0.0–0.2 pips on majors) but a per-trade commission of $3–$7 per standard lot applies. Best for active traders and scalpers who benefit from tight spreads.
What forex account type should a beginner use?
Start with a demo account for 4–8 weeks. Then open a micro account with $25–$100. Only upgrade to a standard account after 2–3 months of consistent positive results on micro. Never start on a standard or ECN account as your first live experience.
Which EU-regulated brokers offer micro accounts?
Exness (from $10) and XM (from $5) both offer genuine micro accounts regulated by CySEC. Both provide negative balance protection and operate under ESMA leverage caps for EU retail clients (30:1 on major pairs, 20:1 on minors).