Course 2 Choosing a broker · Lesson 17 of 19

Account Types and Minimum Deposits

Most brokers offer a standard account with a wider spread and no commission, a raw or ECN account with a near-zero spread and a commission, and often a swap-free account for clients who cannot pay or receive interest. Minimum deposits range from nothing to several thousand dollars, and the right one is not the lowest but the one that lets you size positions properly with money you can afford to lose.

What you'll learn

  • Match an account type to a trading style
  • Set a sensible starting deposit
  • Recognise the strings attached to some account types

The common account types

AccountPricingSuits
StandardSpread only, typically 1 to 1.5 pips on EUR/USDBeginners, small sizes, infrequent trading
Raw, ECN or ProRaw spread plus commission per lotActive traders, scalpers, larger sizes
Swap-free (Islamic)No overnight interest, sometimes a fixed fee after a grace periodClients whose faith forbids interest; not a free lunch for others
Cent or microStandard pricing on tiny sizesTesting with real money at minimal risk
ProfessionalHigher leverage, fewer protectionsExperienced traders who qualify and accept the loss of retail protections

How much to deposit

The minimum deposit is the broker's number; the sensible deposit is yours. Work backwards from position sizing: if you risk one percent per trade and your stop is 30 pips, a micro lot risks 3 dollars, so a 300-dollar account can take that trade. A 50-dollar account cannot take any trade at one percent risk with a sensible stop, however low the broker's minimum. Deposit enough to trade properly or trade on a demo until you can.

Strings attached

  • Professional status waives negative balance protection and other retail rights under FCA and ESMA rules.
  • Bonuses on standard accounts usually lock withdrawals until a trading volume is reached.
  • Swap-free accounts at some brokers exclude certain pairs or add an admin fee.
  • VIP or premium tiers with better pricing usually require large deposits or volumes.

Key takeaways

  • Standard for small and occasional trading, raw for active trading, swap-free if you need it.
  • Deposit enough to size positions at one percent risk with a realistic stop.
  • Read the conditions on professional, bonus and swap-free accounts.

Knowledge check

  1. Which account type usually costs an active trader least?

Trading forex, CFDs and other leveraged products carries a high risk of losing money. This lesson is general education, not advice. Risk disclosure.

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