Forex Cent Account

The undeniable popularity of Forex trading has led to significant growth in the number of new traders. However, not all new traders can make it in the business due to a lack of sufficient capital, knowledge, and experience.

But, do not worry. If you have just started your trading journey in the Forex world, a Cent account may be the best solution for you. Find out the reasons why and how to utilize the Cent account according to your trading objectives and styles.

What is a Cent account?

As the name suggests, a Cent account is measured in cents. Since the unit of measurement is much smaller, it is a great way for beginners to start Forex trading.

The Cent account was first introduced in 2006 aiming to help traders with small capital in their trading journey. This account type is similar to other accounts, such as the Standard account, so you can consider it a Standard account measured in cents. The currency is called USC or USD Cent, and 1 USD lot = 100 Cent lots.
For example, if trader A makes a $10 deposit into his Cent account, he would see a 1,000 USC balance in the terminal.

The same also applies to profits and losses. For example, trader B opens a buy EUR/USD order at the price of 1.0505 with a 0.1 lot volume in his Cent account. He predicts that the price would rise, but it falls and he starts to lose money, so he closes the trade. At the time of closing, the price of EUR/USD was 1.0490. It means that the price dropped by 15 pips (1.0505 – 1.0490 = 0.0015). In other words, trader B loses 15 cents. However, if the same transaction was conducted on a Standard account, he would have lost 15 dollars, 100 times greater. Therefore, a Cent account is less risky for new traders with smaller capital.

Advantages of Cent Accounts

Before registering a Cent account, new traders should learn more about it to take full advantage. The Cent account comes with the following benefits:

👍 Lower Risk of Losing Money

As you can see in the above example, you will lose less money on a Cent account compared to a Standard account. That is why the Cent account is perfect for beginners who have just started to learn how to trade so that they can minimize their losses in the beginning. It goes without saying that lower risk means lower profit. So, when your transaction goes well, you will earn less money compared to the Standard account.

👍 Minimum Deposit Amount

Aside from the lower risk, the Cent account usually requires a lower minimum deposit. Some brokers even offer a minimum deposit as low as 1 USD for the Cent account. Therefore, this account is suitable for traders who do not have much capital or intend to trade in smaller lot sizes.

However, you are advised to deposit more than the minimum deposit since the market fluctuates rapidly and unpredictably.

👍 Minimum Lot Size

The Cent account enables traders to use the smallest lot sizes for their intended trades.

For example, the minimum trade size on the MT4 platform is 0.01 Standard lot, or 1,000 units of currency (or 1,000 USD). Using the cent account, you can minimize the volume to just 10 units of currency (or 10 USD/1,000 Cents). In this way, almost all traders can afford the low trade size even if their capital is limited.

👍 Transition from Demo to Live Account

Beginners usually start their trading by opening a Demo account. They learn how Forex works by using virtual money on the Demo account. Then, they will open a live account.

The Cent account allows traders to practice trading with real money and lower risks. Using this account, they can experience real trading and all it entails (excitement, stress, etc.). Thus, the Cent account can be a smooth transition from demo to live trading.

👍 Test Strategies and Trading Tools/Conditions

This account type is not only beneficial for beginners, experienced traders can benefit from it too. Since the Cent account has lower risks and requires lower capital, it is usually used by traders who want to develop different strategies using real money.

In addition, traders can evaluate the trading tools and conditions offered by the broker to see if the broker’s services are suitable for their trading style. If their experience with the Cent account is positive, then they can continue trading with the broker.

What are the differences between Cent and Standard accounts?

Forex brokers may offer various trading accounts, but the most common one is a Standard account.

So the question is, why should you choose a Cent account over a Standard account? The table below summarizes the differences between the two accounts so you can decide which account is more suitable for you.

If you are a beginner with limited experience and capital, a Cent account may be a good choice for you. Even though the profit is lower, it is a good way for you to develop your trading skills and strategies.

If you are an experienced trader with sufficient experience, knowledge, and capital, choosing a Standard account may be better. With decent risk management, you can minimize potential loss and gain more profit.

Best Cent Forex Brokers

Most Cent account users are new to the Forex world and it may be quite challenging for them to find a reputable Forex broker that offers Cent accounts.

Not many brokers offer this type of account since it is less profitable for them compared to other account types. For that reason, we have made a list of reliable forex brokers that offer cent accounts:

FBS

With 10 years of experience in the field of currency trading, FBS has managed to attract 15 million traders from 190 countries. Regulated by IFSC of Belize and CySEC of Cyprus, this broker offers 6 types of accounts, including the Cent account which is suitable for traders who are just on their way to success.

To open this account, you only need a $1 minimum deposit. Afterward, you will have access to floating spreads starting from 1 pip and leverage up to 1:1000 to trade in Forex, precious metals, stocks, energies, indices, and Forex exotics. The order volume ranges from 0.01 to 1,000 cent lots, with a maximum of 200 open positions and pending orders. All transactions can be conducted on the MT4 and MT5 trading platforms using market execution from 0.3 seconds. The FBS Cent account does not charge any commissions. A swap-free account is also available by request.

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, Bitcoin, PerfectMoney

Regulations: CySEC, ASIC, IFSC
Country: Cyprus
Founded: 2009
Ghana Support Desk: Yes

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Exness

This Forex broker is trusted by over 800,000 clients from 169 countries and is regulated by the FSC of Belize. As an award-winning broker, RoboForex offers several types of trading accounts, such as the Cent account, aka the Micro account.

By depositing a minimum of 10 USD/10 EUR/100 CNY, you can start trading in 36 currency pairs and metals using the RoboForex Micro account. There are four available base currencies, namely USD, EUR, CNY, and GOLD. You can access all transactions via the MT4 and MT5 trading platforms on desktop and mobile (Android and iOS). This account is offered with market execution, a minimum order volume of 0.1 lots on MT4 and 0.01 lots on MT5, as well as 200 maximum positions on MT4 and 1,000 on MT5. There is no commission for deposits or withdrawals, and the spreads start from 1.3 pips. In addition, you can request a swap-free account.

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, PerfectMoney, Bitcoin, Tether

Regulations: IFSC, CySEC
Country: Cyprus
Founded: 2009
Ghana Support Desk: Yes

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Exness

Under the regulations of FCA of the UK, FSCA of South Africa, FSA of Seychelles, CySEC of Cyprus, FSC of BVI, and FSC of Mauritius, Exness has become one of the most established brokers that offer a Cent account.

The Exness Cent account is only available for Forex (up to 36 currency pairs) and metals trading on the MT4 platform. The offered currencies include the USC, EUC, GBC, CHC, AUC, and CAC. The minimum deposit amount varies depending on the chosen payment system; however, there is no commission. Using this account, you can make use of maximum leverage of 1: unlimited with market execution and no re-quotes. A swap-free account will be available if you contact the broker’s support staff.

Payment methods: Bank wire, Credit Cards, Neteller, Skrill, Bitcoin, PerfectMoney

Regulated by CySEC, FCA, FSA
Country: Cyprus

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FXTM

FXTM is another reliable Cent Forex broker regulated by CySEC of Cyprus, FCA of the UK, and FSC of Mauritius. This brokerage company has served more than 4 million clients around the world by offering 3 types of accounts to different users. One of the accounts is the Cent account which is called the Micro account at FXTM. On this account, you can trade in Forex, metals, commodities, Forex indices, and even stock baskets with zero commission. The FXTM Micro account is available in USD, EUR, and GBP with a 10 USD/EUR/GBP minimum deposit and a 0.01 lots minimum trading volume. The spreads start from 1.5 pips with fixed leverage from 1:30 to 1:1000. All transactions are executed instantly on the MT4 platform. You can request a swap-free Micro account by contacting the support team.

Payment methods: Bank wire, Credit Cards, Google Pay, Skrill, Neteller, PerfectMoney, Webmoney, Bitcoin

Regulations: CySEC, FSC, FSCA, FCA
Country: Cyprus
Founded: 2011
Ghana Support Desk: Yes

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FXTM Ghana Review