Brokers With Micro Accounts
Brokers with micro accounts offer straightforward access to forex markets for rookies and those on a budget. This guide will explain what micro trading accounts are and how they work. We also compare micro accounts to other popular trading solutions. Use our list of the best global brokers with micro accounts to get started today.
Micro Account Brokers
#1 - AvaTrade
Why We Chose AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail) 1:400 (Pro)
Pros
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
Cons
- Traders from the US are not accepted
- There is no ECN account with raw spreads
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
#2 - OANDA US
Why We Chose OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- Instruments: Forex, Crypto
- Regulator: NFA, CFTC
- Platforms: OANDA Trade, MT4, TradingView, AutoChartist
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:50
Pros
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- The broker offers a transparent pricing structure with no hidden charges
- There's a strong selection of 68 currency pairs for dedicated short-term forex traders
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
#3 - Deriv.com
Why We Chose Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
- Regulator: MFSA, LFSA, VFSC, BFSC
- Platforms: Deriv Trader, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- The low $5 minimum initial deposit suits those on a lower budget
- The free demo account is ideal for practicing short-term trading strategies and no registration is required
- Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
Cons
- There's no loyalty program or rebate scheme for high volume traders
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
#4 - Pepperstone
Why We Chose Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro)
Pros
- Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
Cons
- There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
#5 - XM
Why We Chose XM
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."
- DayTrading Review Team
- Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
- Regulator: ASIC, CySEC, DFSA, FSC, FSCA
- Platforms: MT4, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
Pros
- 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries
- Transparent and low fees with spreads from 0.0 pips that will help protect day trading profit margins
- XM is a hugely respected broker authorized by tier-one regulators
Cons
- PayPal deposits are not supported
- There's $5 inactivity fee after only 3 months, though this won't affect active traders
- There is weak regulatory oversight through the global entity
Micro Accounts Explained
A micro account is one of the smallest of several different-sized trading accounts – the smallest being nano accounts which are rarely offered. Micro accounts essentially offer low contract sizes, called micro lots, which are 1,000 units of currency. The typical pip value with a micro lot is $0.1. They also commonly go under the name of ‘cent’ accounts.
Brokers who offer micro accounts are best for beginner retail investors who want to access the forex market, or for investors who wish to demo new strategies without risking too much capital.
Micro accounts are primarily found at forex and CFD brokers. Most online brokerages either require no minimum deposit for a micro account, or the deposit is significantly less than the requirements of a standard account, for example, often around $10.
Importantly, other trading conditions and features don’t usually differ from standard live accounts.
Criteria & Qualification
A micro account allows investors to buy smaller contracts with fewer margin requirements. The smallest contract available to purchase is called a micro lot, which is 1% of the size of a standard lot, meaning it is equal to 1,000 units of the base currency.
For comparison, mini accounts offer mini lots as their smallest contract, which are 10,000 units of the base currency. Standard accounts offer standard lots as their smallest currency, which are larger, at 100,000 units of the base currency.
Let’s say an investor wishes to trade EUR/USD. In this case, the euro is the base currency. So, a micro lot of this currency pair would involve the purchase of 1,000 EUR. And you can buy as many micro lots as the capital in your account allows.
Though brokers with micro accounts mean smaller contracts, they do not necessarily mean smaller yields are payable. If the brokerage offers high leverage, traders can amplify their receivable profit. Of course, when trading with leverage, it is important to remember that losses will also be multiplied.
Tip: ensure you have the best rates on your chosen currencies, whether it be the South African Rand (ZAR), Great British Pound (GBP), Canadian Dollar (CAD), or Kuwaiti Dinar (KWD).
Who Should Use A Micro Account?
Perfect for beginners who do not want to risk a lot of capital but want to get into retail trading, forex brokers that offer micro lots are a great step up from demo accounts, in which you practice trading with virtual cash.
Those who have traded before can also use brokers with micro accounts to try any number of new strategies before making large buy and sell orders. This will help gauge if a strategy or trading system works before taking on too much risk.
Compatible Account Types
Cash
Cash accounts can be used jointly with micro accounts as they are also beginner-friendly. Importantly, investors can only use the finances they have deposited into their account, with no margin or leverage trading.
Providers and businesses with these type of cash accounts offer the same tools as regular trading accounts, including the MT4 platform and secure management login and opening.
Managed
When an investor allows another person to manage their capital and account, this is described as managed. It is, naturally, risky to not have control over your funds. Some brokers offer managed micro accounts, but it is important to be thorough with checks on who you are allowing to manage your account, especially as trading can be leveraged, so any losses made by the manager will be amplified. Also check timelines as leaving your capital for 6 months or more may not be possible for some investors.
Look into the fees charged and reviews from other customers on our site, Google or Trustpilot, to ensure you can trust the service.
PAMM
Percentage Allocation Module Management (PAMM) accounts allow investors to group funds while experienced market professionals do the trading. These are arguably safer than managed accounts and are more heavily regulated.
The total profits earned are split between the manager, who receives a portion, as well as between each individual trader whose money was pooled, proportionate to their contribution to the total finances.
A PAMM account may have a higher chance of profit than a micro account, but the amount made will be less as it is split between multiple parties.
ECN
Electronic Communication Network (ECN) accounts are offered by Non-Desk Dealing (NDD) brokers. They can also offer Direct Market Access (DMA) accounts.
NDD brokers allow traders direct access to interbank market rates of exchange. ECN brokers do this by allowing sellers to bid for an order anonymously. With DMA accounts, those who are lending are not anonymous.
ECN brokers do not generally offer micro accounts and these types of accounts are not to be confused with dematerialised (or demat) accounts.
Pros Of Micro Trading Accounts
- Risk control: Smaller lot sizes allow traders to control their risk exposure. For example, in a standard lot, two pip movements in the EUR/GBP is equal to a £20 profit or loss, whereas two pip movement in a micro lot is £0.20.
- Free from additional costs: Micro accounts are a common way for budding investors to begin learning how to trade forex and cryptos with competitive fees.
- Leverage: Profits can be magnified with leverage, so micro accounts do not have to sacrifice profits in return for limited upfront investment. Leveraged trading is also available on multiple assets, from indices like the NASDAQ to ETFs.
- No maximum: The only limit to how many micro lots you can purchase is the money you deposit into your account. This means you can trade using a micro account for as long as you wish, whether it be 6 months or 365 days. As long as you make the right forex trading decisions, there is no compromise on the amount of profits you could potentially earn.
Cons Of Micro Trading Accounts
- Returns: Smaller initial investments tend to lead to lower returns. Leverage can amplify profits, but they also multiply losses, so beginners may not be comfortable trading on margin.
- Upgrading: Once you feel ready to move onto a larger account, you will need to close the micro account and reopen a new mini/standard account. Fortunately, many top brokers with micro accounts also offer mini and standard account solutions.
Final Word On Brokers With Micro Accounts
With as many as 80% of day traders estimated to lose money over a year, with the median loss being -36.30%, it is important to be adequately prepared before getting into trading. Check out which brokers with micro account options have low and high interest rates or zero spread accounts, meaning competitive fees. Micro accounts are a perfect way to introduce yourself to trading before committing to investing larger amounts.
Check out our list of the best brokers with micro accounts to start trading.
FAQs
Are Brokers With Micro Accounts Halal?
Brokers who offer micro accounts may be halal depending on their trading conditions. If there are no overnight finance charges and investors don’t speculate on prohibited industries, such as gambling or tobacco, then micro accounts may comply with Shariah Law. Speak to a local religious leader for guidance.
Which Brokers Offer Micro Accounts?
AvaTrade, City Index, Tiger Brokers, Zerodha and XM are all examples of micro entity accounts. Popular brokerages that do not offer the trading solution include Interactive Brokers and Vanguard. Alternatively, see our guide to the best trading platforms for micro e-mini futures here.
Do UK Brokers Offer Micro Accounts?
Yes – use our list of the top brokers with micro accounts to find a suitable provider. Brokerages in Europe, Canada, Singapore, and Hong Kong also offer micro accounts. Examples include IG, which is available in Zurich, London and elsewhere.
Where Can I Learn More About Brokers With Micro Accounts?
Yahoo Finance, Reddit pages, and YouTube videos can all help broaden your knowledge of micro accounts. Also read up on our guide to forex trading for guidance on getting started.
What Is A Demat Account?
Demat accounts are dematerialised accounts. They are now the norm as they eliminate the need for paper certificates and contracts. It is essentially where bookkeeping is performed electronically, making it more accurate, quicker, and safer when trading.