Foreign exchange trading or forex trading is done using a trading account. There are generally three types of trading accounts namely Standard Account, Mini account and Micro Account. For most first time and occasional traders, Forex mini account serves as the ideal way to invest in the market. A forex mini account needs less money as compared to a standard account and thus involves much lower risks for investors. A well planned forex investment gives huge returns in a very short period of time.

The advantage of a forex mini account is that it helps you acheive the same benefits as a regular account such as the free trading platform, small spreads, etc. It is much easier to trade, as many amateur investors end up making losses using a standard account. A forex mini account saves a lot of money on part of the investors. In due course it will help you develop your own trading strategy.

There are however a few tips that need to be kept in mind while creating a forex mini account:

• Take advice from people who have already created a forex mini account. They can be your best source of information and better than a broker as they will give you an unbiased opinion. These people may also share their personal experience of trading with you.

• All that you will need to open a forex mini account is $300. You can create this account online as there are a number of sites which offer this service in lieu of the before mentioned service charge. The account opening form may vary from broker to broker.

• Once the broker has received all the necessary paperwork, you will receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account.

• You will need to submit two documents, one of which needs to be a government issued ID like a driver’s license or passport, and the other a proof of residence like a utility bill. .

• Be it an online form or in hard copy, you should read all the clauses mentioned by the party. This will prevent you from getting duped by people.

• It is also very important for you to fill in your contact address along with your e-mail ID and phone number. This will ensure that updates of your financial transactions will always reach you even if you change your residence.

Foreign exchange is one of the best forms of investment and can generate high returns in a very short period of time. However it is important that you keep the above mentioned information in mind before investing through a forex mini account.