5 Best Micro Currency Trading Platforms in 2022 • Benzinga – Benzinga

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.com or CedarFX.

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Quick Look at the Best Micro Currency Trading Platforms:

The forex trading market is available 24/5, making it appealing to international traders unconcerned about time zones. Because currencies are affected by global events, they tend to yield significant price action. Traders who position themselves with the movement of the market can profit handsomely.

But forex trading is risky, especially if you choose the wrong broker. You have to know the factors to analyze in determining a legit broker. Benzinga has reviewed the best micro currency trading platforms and provided guidelines for improving your finances. 

Best Overall: Pepperstone

Account Minimum

AUD$200 or equivalent

Pairs Offered

60+

1 Minute Review

Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders. 

Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.

There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.

Best For

  • International traders interested in trading CFDs from foreign markets and currencies
  • Traders who are already familiar with the MetaTrader or cTrader platforms
  • Traders who are looking for leverage when trading cryptocurrencies
Pros

  • Access to over 61 forex pairs and over 60 stock CFDs
  • Leverage available for both forex and cryptocurrency trading
  • Wide range of educational tools and courses that both beginners and experts can use
  • 24/7 customer service
Cons

  • Not currently available to U.S. traders
  • No option to purchase stocks, bonds or mutual funds directly; only CFDs are available

Traders looking for numerous options on a trading platform will find Pepperstone to be the best provider. Besides offering more than 60 currency pairs, Pepperstone provides three trading platforms and two account types. 

The standard account is for new traders that want a straightforward account charging only spreads. The Razor account is for active traders wanting lower fees but don’t mind being charged a commission, dependent on account currency. Traders can also choose between three trading platforms: MetaTrader 4, MetaTrader 5 and cTrader. Each contains special features and currency pricing. 

Pepperstone enables traders 30:1 leverage and has a 99.95% fill rate. The average spread for a EUR/USD is 0.77, and Razor account holders will pay 0.17 average spreads for that pair. Traders should keep in mind that swaps are applicable, and Pepperstone doesn’t charge inactivity fees. The platform enables trading currency indices at a leverage of 5:1

Demo accounts are available and allow traders to test the platform before going live. Traders seeking education about trading or the platform can access Pepperstone’s webinars and articles. The platform also offers 24/5 support and 18 hours on weekends. 

Pepperstone provides access to U.S., U.K., German and Australian markets. More than 600 U.S. CFDs are available from Nasdaq and the New York Stock Exchange (NYSE) on Pepperstone.

Best Currency Pair Selection: City Index

Best For

CFD Trading

1 Minute Review

City Index has offices in the U.K., Australia, Singapore and the Middle East and it is a part of GAIN Capital Holdings Inc (NYSE: GCAP), one of the world’s largest providers of trading services to retail and institutional customers.

Best For

  • Low spreads and fees
  • Selection of contracts for difference
  • Trusted broker owned by Gain Capital
  • Spread betting
  • CFD traders
Pros

  • Offers fixed and variable spreads
  • Offers web, mobile and desktop platforms
  • U.K. and the Middle East clients can’t lose more than they deposit
  • Trading support
  • Segregated client money
Cons

  • A monthly inactivity fee of £12 is applied for accounts that are inactive for 12 months or more
  • Forex spread is higher for MT4

Traders who are new to micro currencies can test City Index’s platform via the live demo account. Users will get access to more than 13,500 markets and unlimited features to the TradingView charts, as well as Trading Central analysis and many other advanced tools.

Besides offering the MetaTrader 4 platform, City Index enables mobile traders access to the same features as the desktop version, but it’s conveniently designed for mobile devices. Traders have access to more than 80 currency pairs.

The platform doesn’t charge a commission for trading forex, commodities, indices and cryptocurrencies. But it charges stock traders a commission, varying based on the share market traded. The platform offers tight spreads for major currencies. Funding an account is possible via debit/credit cards, bank transfers and Paypal. The platform doesn’t stipulate a minimum deposit but recommends at least $130.

All deposits and withdrawals are free. City Index limits online withdrawals to £20,000 in a single transaction, which is equivalent to $24,000. Online credit card withdrawal is also limited to $24,000 within 24 hours, and withdrawals take three to five business days to reflect in a customer’s account.

You can access free courses, lessons and webinars on the platform. City Index also provides SMART signals, an AI-powered algorithm that provides you with potential trading opportunities. Otherwise, you contact 24/5 customer support for any queries.   

Best Regulations: eToro

get started
securely through eToro’s website

Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For

  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros

  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons

  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade

eToro enables traders access to markets such as currencies, stocks, commodities, cryptocurrencies and exchange-traded funds (ETFs). If you’re a new trader, you shouldn’t have issues navigating the platform, and you’ll get access to the education center that offers tutorial content, news and market analysis.

This platform hasn’t left beginners in the lurch because it has enabled them to copy the trades of professional traders. The feature is called CopyTrading, and it enables traders to see the positions that pro traders have taken and to do the same. The best part about this service is that it’s free. 

You have several options to deposit funds such as bank wire, cards, Skrill, Neteller, Paypal and Webmoney. The minimum deposit is $10. eToro doesn’t charge for deposits, but withdrawals carry a $5 fee. More than 49 currency pairs are available for trading, and eToro offers 0% commission for stock trading.

Protecting investor funds is crucial, and eToro wants to ensure traders that it complies with strict financial measures. That’s the reason it is regulated by several financial authorities such as the U.S. SEC, CySEC, FINRA and ASIC.

Best Pricing: FXTM

Account Minimum

Micro account (with minimum deposit $/€/£ 50) and ECN Advantage & ECN Advantage Plus (both with minimum deposit of $/€/£ 500)

Pairs Offered

35

1 Minute Review

Cyprus-based ForexTime Limited, commonly referred to as FXTM, is one of the world’s most popular forex and contracts for difference (CFD) brokers. Since 2011, FXTM has provided traders with a wide range of trading instruments and educational resources, as well as fund protection, free demo accounts and account managers. 

FXTM is regulated in a number of jurisdictions and supports the MetaTrader 4 and 5 (MT4&5) trading platforms and their mobile apps. In addition to forex, you can trade spot gold and silver, as well as CFDs on cryptocurrencies, indices, commodities and over 300 of the largest cap U.S. stocks. FXTM also provides educational webinars and seminars for less-experienced traders. 

Best For

  • Beginning traders
  • Experienced traders
  • Copy traders and people looking for a managed forex account
Pros

  • Extensive list of trading instruments
  • Online webinars and seminars
  • Copy trading, PAMM and managed accounts
Cons

  • Does not accept U.S.-based traders
  • Does not support Myfxbook or ZuluTrader options for social trading
  • No futures or options trading

FXTM specializes in currency trading, even though it offers traders access to commodities and stock trading. As a trader on FXTM, you can choose between three platforms: MetaTrader 4, MetaTrader 5 and the mobile app.

The platform lets you trade more than 60 currencies after funding your account via various methods, including bank wire, credit cards and major e-wallets such as Skrill, GlobePay, NETELLER and PayRedeem. The platform enables traders to open a micro account, Advantage account, Advantage Plus account and a demo account. Each offers special features, and you get commission-free trading on the Advantage Plus account.

FXTM provides you access to FX indices and trading education consisting of videos, market analysis and guides. You can also model the trades of professionals by using the Copy Trading feature. This broker offers contests and bonus promotions. If you refer a friend to FXTM, you and the friend will receive $50 each.

Best Market Range: XTB 

Best For

Small Account Forex

1 Minute Review

X-Trade Brokers (XTB), a leading online trading broker based in London, offers a physical presence in 11 other countries. It was established in 2002 in Poland and is therefore publicly traded on the Warsaw Stock Exchange.

XTB is highly regulated by the largest financial entities such as the Financial Conduct Authority (FCA) and offers tradable assets including forex trading, indices, commodities, stocks, ETFs and cryptocurrency pairs. Its two platforms sync with all computer devices and provide a flexible trading environment. XTB is famous for its low fees, fast order execution and has won multiple international awards.

Best For

  • Beginner traders
  • Advanced traders
  • Active traders
  • Forex programmers (MT4)
Pros

  • Highly regulated
  • Publicly traded
  • 2,000+ tradable assets
  • Tight spreads
  • 1-on-1 training and education
  • High-quality research
  • High-quality support
Cons

  • Not accepting U.S. clients
  • Minimum deposit of $250, £250 or €250

XTB allows you to access 2,100 instruments and 57 currency pairs. It offers an xStation 5 standard trading platform and xStation Mobile for traders who prefer apps. It offers spreads from 0.1 pips and offers traders stocks, indices, ETFs and cryptocurrency markets.

You can deposit only U.S. dollars, and XTB offers free card deposits, which is rare for brokers. Besides offering 1:500 leverage, XTB provides market news, a knowledge base and a standard and swap-free account. Both of the accounts offer 0% commission trading for forex, indices and commodities. The minimum spread for a standard account is 0.5, but it’s 0.7 for the swap-free account. 

XTB doesn’t have a deposit minimum, but it charges an inactivity fee. If you are inactive for 12 months, XTB charges a $10 monthly fee.

Features to Look for in the Best Micro Currency Trading Platforms

Knowing if you’re trading on the right platform requires you to analyze a few features to determine if the offerings coincide with your investing strategy.

Benzinga found several key features that serve as guidelines for you to examine.

Regulations

An important aspect of a brokerage is the regulations it is party to. Brokers need to prove to you that a regulatory body is watching over them to ensure they won’t mismanage your funds. The way to do that is by seeking regulations from financial authorities.

These financial watchdogs ensure that brokers adhere to stringent financial procedures and enforce penalties for disobedience. Authorities such as the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) ensure market integrity and enforce rules governing registered brokers.

By registering with such authorities, brokers show clients that they are serious about providing ethical services and protecting client funds. 

Fees

Many traders are concerned about the potential profits they can make, but some don’t question all the fees involved. Although a trade can provide significant returns, high fees can drastically lower profits. On the other side of the spectrum is losing trades. High fees increase losses and can dissuade traders from continuing. 

Besides maintaining reasonable fees, brokers need to be completely transparent about them. You need to ensure that you’re familiar with all the fees a broker charges such as overnight fees, inactivity fees and account maintenance.

Trading Platform

A broker should offer a demo account so that beginners can practice. Having access to a demo account also helps beginners get a perspective of the potential results in a live environment. Advanced traders use demo accounts to see if the platform offers features compatible with their desired trading strategy.

A platform should contain advanced tools, and brokers should cater to mobile traders. The mobile app should be convenient to trade on mobile screens and contain all the key features.

Assets

Most brokers provide access to majors and minors. Some platforms even offer exotics. Many traders prefer a platform that allows them access to numerous currency pairs. The market doesn’t always provide trades on the major pairs, so active traders seek trades on other pairs.

The more pairs a platform offer, the easier it is for traders to open trades. Platforms should offer various markets. If you’re looking for the best stocks to buy, you’d want a broker offering a large selection of securities and preferably commodities as well.

How to Invest in Micro Currencies 

Opting for micro currency trading means choosing a micro lot — a preset amount of 1,000 units of currency or one-hundredth of a standard lot. Opening a trade is simple, and here are the steps.

Open an Account

After you’ve selected a regulated broker that offers low fees and numerous assets and markets, you need to register an account. That entails visiting your preferred broker’s website and signing up with an email and a password.

A regulated broker requires you to verify your account. Besides verifying your email address and mobile number, you may need to upload an identification document and a utility bill.

Choose an Asset

Whether it’s forex pairs or building up a stock portfolio of the top 5 stocks under $5, you need to decide on the asset to trade. Do a technical and fundamental analysis to determine the best asset to trade. It’s not always the most popular currency pairs or stocks that provide the best setups. 

Being knowledgeable about a particular asset helps you increase your chance of entering a profitable trade. Consistently profitable traders usually stick to trading the same few assets. You need to know the best stocks to buy.

Determine the Amount to Trade

Regardless of your expertise level, trading is risky. It’s especially risky when traders incorporate leverage. That strategy is more applicable to advanced traders, and new traders should consider entering positions with small amounts.

Whether beginner or seasoned, you should invest only the amount you’re comfortable with losing. A good rule of thumb for entering a trade is to believe that you’re never going to see that money again. Are you prepared to lose that amount and not have it affect your finances adversely?

Protect Your Trades

Most profitable traders aren’t greedy. They know when to lock in profits. Letting a trade run for too long because of greed can result in a reversal and losing all the unrealized profit made. Locking in partial profits in a favorable trade converts unrealized profits into realized. It also minimizes losses.

Traders protect their positions and avoid depleting their accounts by using stop losses. Although traders should give the market some room to maneuver, traders need to contain losing trades by putting in stop losses. The general rule with each trade is to risk only 1% of your total account. So traders need to incorporate that percentage when determining their stop loss positioning.

How You Can Improve Your Finances

You can take several steps to ensure that your finances improve. Even if you may not want to be a millionaire, having financial freedom enables you to have peace of mind and provides you the opportunity to be generous by helping others.

Get out of Debt

Debt is the enemy of financial freedom. If you have debt, it’s harder to be rich or to be in a financially sound position. Most people work because they have debt to pay. Imagine going to work and not having payments to worry about, so you have more money at the end of the month.

A good strategy to get out of debt is to start with the smallest one. It’s the easiest to pay off, and it serves as motivation to pay off the second-smallest debt. After paying off the first debt, you have more money for the second one, so you should be able to pay it off sooner than required.

Budget

If you’re uncertain about how you spend your money, it’s because you’re not budgeting. Tracking your spending shows you the expenses you need to curb. Preparing a list of expenses and provisions for unforeseen costs enables you to allocate funds and can guide your behaviors.

A budget highlights excessive spending and unnecessary costs. Having a good idea of monthly expenses shows you if you need financing to cover the costs. Sticking to a budget can lead to better money management and develops financial discipline. 

Live Below Your Means

One of the main reasons people don’t have money is because they live a life they can’t afford. They’re concerned about impressing their family and friends. Luxury items provide them with a status that satisfies a craving for belonging.

Even worse is that those people refuse to lower their standard of living when their income decreases. Regardless of how much money you make, you can have money only if your expenses are lower than your income. Thriving financially is about how much money you keep, not how much you make.  

Invest

The only way to invest is if you have money. Getting out of debt, budgeting and living below your means are ways to increase your chances of having money. When you have it, you should consider saving a portion and investing the rest.

Passive income enables your money to work for you. It’s earned while you sleep and not having it means you have to work for the rest of your life. An investment can be a 401(k) or investing in the stock market by buying stocks under $10. 

Whichever investment you choose, make sure to do your due diligence. You have to know as much as possible about an asset and a stock exchange to feel secure about investing in it. Solely looking at its price isn’t sound investing. Once you’ve decided on an asset, invest only the amount you can afford to lose.

Risk-averse investors prefer to invest in securities listed on a major stock index such as the S&P 500. Regardless of what strategy you use, make sure that you know everything about stocks.

Frequently Asked Questions 

What are micro currency stocks?

Micro currency traders engage in trading currencies in lots of 1,000 units. These are usually small positions suitable for new traders or ones that don’t want to risk a lot of money. A micro lot is a micro account’s smallest contract and is one-hundredth of a standard lot. Traders can opt for bigger positions by opting for a mini lot or a standard lot. Major brokers offer all three lot sizes.

Answer Link

Is micro investing worth it?

It’s ideal for investors wanting to trade small positions. People who are new to trading or ones not wanting to risk a lot of money will find micro investing to be a good start. Micro lots enable traders to get a feel for the market in a live environment while limiting their losses. Entering micro lot trades provides you the opportunity to make more money than the interest earned in a money market or savings account. 

Answer Link

How do Micro Accounts Work?

Before you open a trade, you need to input a lot size. With a micro account, you’re selecting a contract that amounts to 1,000 units of the base currency you’ve chosen to trade. What you’re doing is making purchases in multiples of 1,000 units. One mini lot consists of 10 micro lots, which is 10,000 units. One standard lot is 100 micro lots, which equates to 100,000 units of the base currency.

Answer Link

How Do I Start Micro Currency Trading?

You need to open an account with a regulated broker that offers micro lot trades. Then, you would deposit the minimum amount to start starting. A broker such as Pepperstone doesn’t have a minimum deposit amount but recommends depositing at least $136. Select the currency pair to trade and the micro lot size.

Answer Link

How Much is a Micro Lot Worth?

One micro lot is worth $0.10. A mini lot is worth $1, and a standard lot is $10.

Answer Link

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade. 

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