I have been asked several times, especially recently, what are the advantages of foreign currency forex trading and I tell whomever is asking is that this is a truly historical time in the history of man, and huge sums of money can be made with very little money down.  As you have witnessed the stock market the past 3 weeks has been going up and down in historical proportions and the US Dollar was very low but has bounced back as the world recoiled from our little 40 to 1 mortgage/insurance/craps game investment houses imploded upon.  But not everyone has money to play so I always tell them about the foreign currency forex mini accounts, the everyman’s ability to get into this little game. But what are the advantages?
Well, there are a lot of advantages of a forex mini account. The best thing is that with a foreign currency forex mini account you get to enjoy benefits that are enjoyed by the holders of regular forex accounts. Some of these benefits are small spreads, free trading platforms etc.

USING $50 TO TRADE 10,000
There is a term that is very commonly used in the world of forex mini account. It is leverage. It could be understood as a facility that allows you to trade more than your deposits. For a mini forex account, the margin deposit needed for every $10,000 lot traded is $50. Now, you do the math. A simple calculation of dividing the two quantities would tell you that the leverage here would be 200 to 1.

If you deposit just $250 in your mini forex account; it means that you can trade a maximum of five lots. Increasing the deposit to $1000 would allow you to trade a maximum of 20 and so on. Compare this with a regular forex account. The leverage there is just 4 to 1 for account holders having $25,000 or more in their account. This means that the leverage of someone having mini forex account is fifty times higher than a regular forex account. It is true that higher leverage could not always be used but what it does is that you get some distinct advantages in terms of flexibility in changing the strategies as per the changes in forex market.

Also, you are in the game, you have an opportunity to actually make money.  You gain experience and you gain insight to your own psyche as to how much you feel comfortable with risk and how much you are able to go for the gold without losing sleep.  This is extremely important in any type of investment but you learn your own boundaries quicker and cheaper this way.