Mini FOREX trading accounts versus full FOREX trading accounts

During the weekend I was having a look at the differences between mini FOREX trading accounts and comparing them to the full trading accounts.

One thing which I haven't been able to figure out is why anyone (I'm excluding the non beginners since I'm nowhere near being anywhere near them in terms of capital or risk taking) would choose a full trading account. The way I see it is that until you are investing more than $10k you would be mad to not make use of the better leverage and extra flexibility.

Generally what I found was that most full FOREX trading accounts have a minimum of between $3,000 and $5,000 with leverage being 100:1. Lots are $100,000 so each lot costs you $1000.

The Mini FOREX trading accounts on the other hand generally have a minimum of between $300-$500. Leverage is normally 200:1 with lots being $10,000 so each lot only costs $50. The great thing about this setup is that you get a lot more flexibility, assuming you have the funds there is nothing stopping you from buying 10 lots and taking advantage of the additional leverage. Though the risk is reduced for single lot positions that you take. Of course it sucks when your account goes over the $10,000 maximum level that most brokers have for their Mini FOREX trading accounts. Though hopefully if you can work it up to there then you'll do as well (except for only getting half the leverage) with a full account.

Needless to say, I will be running with a Mini FOREX trading account when I make the switch to real money. Having thought about it, I don't think a Micro Mini account is worth it.

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