The forex market is popular among traders of all types. This market sets the exchange rate for each currency and includes all aspects of currency trading, including buying and selling at fixed and current values. A best forex broker is a middleman. Traders can use the broker’s interface to perform forex deals. A pair of two currencies is always included in transactions. A professional broker is a good choice if Forex is your only area of interest in the trading market.

Various brokers are available in the market but here we are going to share with you the details of the world’s best ECN Broker “Xtreamforex”. As one of the largest Forex Brokers in the world, Xtreamforex has a reputation for providing best-in-class trading experiences. They’ve been veterans in space since 2015. They allow you to trade Forex, commodities, crypto currency, and indices. You don’t have to pay anything to get started. A $5 micro account is available to begin trading. Furthermore, Xtreamforex provides two of the most well-known ways to begin investing in forex trading: PAMM services and copy trading services. Before sharing with you their best offering trading accounts, let’s understands about forex account and some basic terms.

What is forex account?

Forex accounts allow traders and investors to trade all major currency pairings as well as several emerging market pairs.

Must know basic terms in forex trading

•  Minimum Deposit: A minimum deposit, also known as an initial deposit, is the amount of money necessary to create an account with a financial institution like a bank or a brokerage business
•  Forex trading pip spread: Pips are a small unit of fluctuation in the price of a currency pair, and the final decimal point on the price quote is used to calculate the spread (equal to 0.0001). With the exception of the Japanese yen, where the pip is the second decimal point, this is true for the vast majority of currency pairs (0.01).
• Commission: A commission is similar to the spread in that it is charged to the trader on every trade placed. The trade must then attain profit in order to cover the cost of the commission. There can be two types of commission fixed & relative fee. The relative fee is, in some cases, variable and based on the amount that is bought or sold
• Margin Call: When the value of an investor’s margin account falls below the broker’s mandated amount, a margin call happens. A margin account holds stocks purchased with borrowed funds.
• Stop out Level: A Stop out Level in forex trading occurs when your Margin Level falls to a specified percentage (percentage) level, at which point one or all of your open positions are automatically closed (“liquidated”) by your broker. This liquidation occurs when the trading account’s margin is insufficient to maintain the open positions.
• Execution Type: Simply put, order execution refers to the price at which you purchase or sell a particular currency. Market and Instant execution are the two types of execution. In the first scenario, you actually tell the broker that you are willing to buy at any current price.
• Leverage: The use of borrowed money (referred to as capital) to invest in a currency, stock, or investment is known as leverage. In forex trading, the concept of leverage is fairly frequent. Investors can trade greater positions in a currency by borrowing money from a broker.
• Swap Free Accounts: These are trading accounts that do not create swaps, as the name implies. When a trader decides to keep their position open overnight, a “swap” is a commission or rollover interest that a broker charges.
• Minimum Order Size in Lots: In a forex trade, a normal lot equals 100,000 units of the base currency. The other two regularly used lot sizes are mini-lot and micro-lot.
•  Maximum Open Orders: It is a type of limit order to buy or sell shares at the market open if the market price meets the limit’s condition. This type of order is good only for the market opening and does not last for the whole trading day
• Scalping/Hedging: Scalping is a form of trading. Roughly, it entails investing large sums in very short-lived positions and profiting by a few pips each time. Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset
• Bonus: A bonus is a monetary reward given by brokers in exchange for creating an account or making a deposit. This could be a set amount or a percentage of the money deposited. To encourage you to trade, brokers provide bonuses. This is a great option for inexperienced traders who can’t yet afford to trade with cash.

 Types of Trading Account Offering for every Investor:

Xtreamforex is offering various types of trading accounts as per the needs of the traders, the most common live trading account types are based around the size of the lots you wish to trade. Considering this, each different type of account has a different minimum deposit level too.

•  Demo Account: Demo accounts allow you to practice your trading. They are virtual accounts loaded with virtual currency. Almost all demo accounts are free.
•  Micro Account: Micro accounts are intended for traders with a tiny quantity of capital, as their name suggests. They let you to access the market with a little initial deposit.
• Standard Account: Standard accounts have a minimum deposit limit of around $250, and they allow you to trade mini-lots.
• ECN Account: ECN account have a minimum deposit limit of around $250, here you have the raw spreads with commission charging on it
•  ECN PRO Account: ECN account have a minimum deposit limit of around $5000, here you have raw spreads with less commission charging against ECN account & you can open unlimited positions.
• VIP Account: Whilst the names of these account types suggest that you would need to be accredited if you wished to open one, that’s not necessarily the case. VIP accounts are generally just reserved for those who have a large amount of capital. They have a high minimum deposit limit (around $10,000) and allow you to trade standard lots.  

Choose a forex account type requires you to carefully consider a variety of other things as well which you can see here. It’s important that you choose the right account for you, as your account type can impact your performance and profits.