Here’s how to start building a small forex account using day trading, including what type of account to open, what time frame to focus on, strategies, and expectations. Forex trading allows you to control your position size precisely, and utilize leverage, both which aid a small trading account. We will discuss both these concepts a magic stick review forex later on.
To keep the article to a reasonable length, links are provided to articles or resources with more information on a given topic. Please read those as well to get a full grasp of the concepts. 1000 or less, trade through an ECN broker that offers a near-zero spread and low commissions. Using an ECN broker means you can capitalize on short-term opportunities and still manage risk.
That translates to lower spreads, and you can instantly buy and sell whenever you like. Non-ECN brokers typically charge larger spreads and are acting like a middle-man between you and the market. Orders may be slow to fill, and there may be limitations on where you’re allowed to place orders. Limit, stop, and market orders are our three main order types as day traders.