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Business 252 views Jul 31, 2017
Does big account give traders extra advantages in Forex?

Many traders think that the traders with a big account in forex trading are getting an extra advantage in Forex. They do not have to use the leverage to place a big trade with a large spread in the market and they do not have to wait like the other small trader in the market to grow their account into a large size. It is true that small account is very hard to grow. It is like growing a muscle in your body. You have to go to the gym every day to see any visible change in your muscle. If you start the trading in Forex with a small account, you will make profits in cents. Traders who start their trading with large accounts make their profits in thousands of dollars.

We are going to explore the difference that traders have when they trade the market with different account size. It is not always that only the rich people can start their trading with a large account. Not all the people are rich who have a large account. Many of them had started their trading with a small account and have grown this into a large size. Even there are some professional traders in the United Kingdom who have started with a super small size trading account but due to their extreme level of skill and trading discipline, they are now managing million dollars.

Does large account really top over the small account?

Not all traders can trade in the large account as perfectly as they can trade in the large account. But large account does have some edges over the other small accounts. But most of the time the advantages are not so prominent. If you can trade with your small trading account then you are ready to make a profit. But if you don’t know how to make profit consistently then you will never be able to make a small portion of profit on a regular basis with a million dollar trading account.

No need of using leverage: Leverage allows the trader to trade the market like a big account holder in Forex. When traders are operating in large account, they do not have to think of using leverage, this, in turn, makes their trade more realistic and keeps them on the right track of making a profit. But the professional traders use high leverage to place high-quality trades in their online trading platform with perfect risk management plan. If you can use the leverage in the right way then it is one most amazing thing that the forex brokers offer. But almost 95 percent of the traders are using leverage in an incorrect way and thus they are losing money continuously.

Profit is larger in large accounts: when you are trading in a large account, the profit is also larger. Larger profit is essential when you are trading the market professionally. Most professional traders have large accounts for making profits in large dollars. If you trade with a small trading account then you can never really make a big profit with proper money management. You have to risk a huge portion of your trading account. But by trading with a large account you can easily risk 2 percent and make a decent income in terms of the dollar from the profitable trades.

But it also comes with the risks

The Large account has also many risks. Here you are trading with big numbers and any trade you lose will lose you thousands of dollars. You have to trade the market with perfection because you do not want to lose thousands of dollars in Forex.

Summary: Trading is an art and account size should never really matter to the trader. If you know how to make profit consistently then you can easily turn your small trading account into big one within a single year. So instead of debating with the account size try to learn the perfect knowledge of trading.