Forex Brokers with Micro Accounts

Written by Zornitsa Stefanova

Zornitsa Stefanova

Zornitsa Stefanova is experienced forex and crypto analyst. She also covers various financial topics such as stocks trading and retirement investments.

, | Updated: June 13, 2024

Opening a micro account is a great way to start your forex trading journey with limited capital. You struggle to find a reliable broker offering micro accounts? Here is our unbiased ranking of the 10 best brokerages facilitating forex trades as small as one micro lot. Our top picks are tailored to the needs of retail, beginner, and small-scale traders, boasting low minimum account and trade-size requirements. Our expert researchers tested all recommended brokers and checked their regulatory background, ensuring only licensed and reliable brands made the list.

1Fusion Markets

Rating: 4.8 ⭐

74-89% of retail CFD accounts lose money

2IC Markets

Rating: 4.8 ⭐

70.64% of retail investor accounts lose money

3FP Markets

Rating: 4.8 ⭐

73.85% of retail investor accounts lose money

4AvaTrade

Rating: 4.5 ⭐

76% of retail investor accounts lose money

5Eightcap

Rating: 4.3 ⭐

76.09% of retail investor accounts lose money

6Global Prime

Rating: 4.1 ⭐

74-89% of retail CFD accounts lose money

7XTB

Rating: 3.7 ⭐

80% of retail investor accounts lose money

8Tickmill

Rating: 3.4 ⭐

70% of retail investor accounts lose money

9XM Group

Rating: 2.7 ⭐

72.82% of retail investor accounts lose money

10Iron FX

Rating: N/A ⭐

67.62% of retail investor accounts lose money

Top 10 Forex Brokers Offering Micro Accounts

1. TRADE NOW READ REVIEW
   1. Global Prime

   Global Prime is a popular option among small-scale traders looking for favorable trading conditions, competitive commissions, and low spreads. Regulated in Australia and Vanuatu, this no-dealing-desk broker facilitates trading in 150+ financial markets, offering spreads from 0.0 pips for major currency pairs.

   Standard and Raw accounts at Global Prime both support minimum trades of 0.01 micro lots, with a ceiling of 1000 lots per transaction. Standard accounts incur no commissions but have slightly higher spreads compared to Raw accounts where a $3.5 commission per side is in place. Both account types allow for scalping and hedging. There are no minimum requirements or extra fees on deposits at Global Prime.

   Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
2. TRADE NOW READ REVIEW
   2. AvaTrade

   With nearly two decades of experience up its sleeve, AvaTrade enjoys the status of an undisputed leader in low-cost forex and CFD trading. The brokerage services customers across six continents with the approval of nine financial regulators, including the Japanese FSA, CySEC, and ASIC.

   Over 400,000 clients have chosen AvaTrade for its competitive fee structure, ultra-tight spreads, and robust selection of 1,000+ instruments. Customers can take positions as small as one micro lot by connecting their AvaTrade accounts to MetaTrader. Trading fractional shares in nano lots is an option for clients with MetaTrader 5 accounts.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3. TRADE NOW READ REVIEW
   3. Fusion Markets

   Fusion Markets commenced operations in 2019 and quickly made waves in the retail trading community with its exceptionally low commissions, competitive spreads, and flexible account options. The broker conducts trading activities with licenses issued from ASIC, VFSC, and SFSA. Over 250 financial instruments are tradable with this low-cost forex broker, including 90+ currency pairs.

   New retail customers face a choice from two main account types, Classic and Zero, both of which support trading in micro lots. The accounts have no minimum size requirements, allowing budget-conscious traders to start with any amount they like. Various funding options are available, including bank cards, wire transfers, cryptocurrencies, and digital wallets.

   Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
4. TRADE NOW READ REVIEW
   4. XTB

   Established over two decades ago, XTB is a true pioneer in delivering online retail trading at low cost. The multi-regulated broking firm has earned universal acclaim for its transparent price structure and excellent trading conditions, including tight spreads and commission-free trading via Standard accounts. The broking firm offers over 5,600 financial instruments, with minimum orders from one micro lot.

   XTB gives you the flexibility to start your forex trading journey with any amount you wish by waiving its minimum deposit requirements. Deposits are free and so are withdrawal requests exceeding €100. The broker protects customers from negative balances and stores their funds in segregated accounts at tier-one banks.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5. TRADE NOW READ REVIEW
   5. IC Markets

   IC Markets is a suitable option for customers looking to engage in algorithmic trading through familiar platforms like cTrader and MetaTrader. Clients of this multi-award-winning brokerage will benefit from raw spreads starting from zero pips for 2,000+ tradable instruments. The broker provides round-the-clock customer support in multiple languages.

   The company’s outstanding range of tradable products is accessible via Standard and Raw Spread accounts. All account types require minimum deposits of $200 and allow for micro-lot trading. The broker imposes no restrictions on trading styles, welcoming scalpers, algorithmic, discretionary and day traders from all experience levels.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6. TRADE NOW READ REVIEW
   6. FP Markets

   FP Markets is a multi-licensed broking firm with a global presence, reaching traders from most countries worldwide. There are many advantages to trading with this trusted broker, including consistently tight bid-ask spreads, below-average commissions, and direct market access via ECN accounts.

   Ideal for traders from all walks of life, FP Markets boasts an impressive lineup of over 10,000 tradable products. From 70+ forex pairs and stocks to bonds, crypto, and commodities, FP Markets delivers no matter your trading style or investment goals. The broker offers two main account types, Raw and Standard, with a minimum trade size of 0.01 lots.

   10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money
7. TRADE NOW READ REVIEW
   7. Eightcap

   Eightcap has been doing business with customers for over 15 years, boasting broad instrument coverage, bargain spreads, and best-in-class order execution. The broker has garnered an excellent reputation for the quality of its services, not to mention it operates with authorization from several tier-one regulators like CySEC and ASIC.

   Customers can choose from three account types, Raw, Standard, and TradingView accounts. All three facilitate trades from 0.01 to 100 lots and require starting deposits of $100. If you insist on low spreads and direct market access, we recommend you register a Raw account. Commission-free trading with minimum spreads from 1.0 pip is available to customers with Standard and TradingView accounts.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
8. TRADE NOW READ REVIEW
   8. Tickmill

   Tickmill offers a bevy of financial instruments, allowing customers to explore over 600 markets. Clients looking to dip their toes in forex trading can choose from over 50 currency pairs. The broker’s spreads start from 1.6 pips on Classic accounts and zero pips on Raw accounts where a $6 round-trip commission applies. Starting deposits for both account types amount to $100.

   The minimum tradable volume for Classic and Raw accounts is set at one micro lot. Unversed traders can advance their knowledge by participating in webinars and in-person seminars. Free ebooks, video tutorials, infographics, and market insights are also available to Tickmill customers seeking to sharpen their trading skills.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with Tickmill Europe Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
9. TRADE NOW READ REVIEW
   9. XM Group

   If you are looking for a well-rounded selection of financial instruments, XM is the right broker to join. Its portfolio encompasses north of 1,000 markets, including over 50 currency pairs and 600 stock CFDs. The broker does business with retail customers from more than 190 countries with the regulatory approval of ASIC, CySEC, DFSA, and the Belizean FSC.

   Fully committed to customer satisfaction, XM provides bargain prices and seamless execution to all clients regardless of account size. The broker offers an excellent choice of account types, including Ultra Low Micro accounts with minimum spreads of 0.6 pips on all forex majors.

   Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
10. TRADE NOW READ REVIEW
    10. Iron FX

    IronFX is a multi-regulated online broker, providing a versatile range of financial instruments across six asset classes. Its forex portfolio comprises over 80 currency pairs, tradable with competitive fixed or variable spreads, depending on the type of account you open. STP and ECN-based accounts are available to traders seeking direct market access and low spreads.

    All account types come with a minimum trading volume of one micro lot, rendering IronFX a perfect fit for high-frequency and budget-conscious traders. Flexible leverage of up to 1:1000 is available to customers based outside of Europe and Australia. Trading in micro lots without swaps on overnight positions is an option for Muslim clients.

    Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Comprehensive Comparison of the Top 10 Forex Brokers with Micro Accounts

What Is a Micro Trading Account?

Micro accounts are perfectly suited to customers looking to dip their toes into the forex market with limited capital. This type of account enables you to trade in micro lots. In forex trading, the term “lot” denotes a fixed quantity of currency units tradable in batches. A standard lot comprises 100,000 currency units, whereas a micro lot equals only 1,000 units in the base currency of forex pairs, or one-hundredth less than standard lots.

Let’s use the EUR/USD pair to demonstrate the difference between standard and micro-lots in forex trading. The pair shows how many units of the quote currency (USD) you need to purchase one unit in the base currency (EUR). When trading this pair, you hope the euro will appreciate against the dollar.

If a broker quotes a price of 1.2000, traders will need $1.2000 to purchase a single euro. One standard lot comprises 120,000 units of the quote currency at this price. Traders must spend $120,000 to purchase €100,000, respectively. Few retail traders can afford to invest this much. The amount decreases considerably when you trade in micro lots, in which case you need only $1,200 to buy €1,000.

Who Should Open a Micro Trading Account?

Micro accounts are suitable for budget-conscious and beginner traders due to their lower minimum trade size. This type of account enables inexperienced customers to trade forex even when having limited capital at their disposal. It gives them exposure to the foreign exchange markets without requiring them to risk substantial amounts of money. They typically have lower or no minimum deposit requirements, making the markets accessible for retail traders across the board.

Seasoned traders looking to test new strategies in real-world market conditions also resort to using micro accounts. Experienced traders sometimes trade in micro lots when seeking to diversify their portfolios and invest in new markets with reduced risk. Micro accounts allow them to refine their strategies and adjust them if necessary based on real-market observations.

Setting Up Your Micro Trading Account

Setting up a micro trading account is quick and straightforward, assuming you have already found a reliable forex broker offering this option. Click on the sign-up button to initiate the registration process and enter your personal information and residential address in the form. New customers can often sign up with their existing Google or Facebook accounts.

1. Financial Information
   Fill out your financial information, including your employment status (employed, retired, self-employed), professional occupation, annual income, and source of funds. Next, you must configure your account by selecting your preferred trading platform, account type, base currency, and default leverage.
2. Client Experience Evaluation

   Select a strong password to proceed to the next step. Most brokers recommend using a combination of lower and uppercase letters, special symbols, and numbers. If you intend to trade leveraged products like CFDs, the broker will prompt you to complete a brief questionnaire to evaluate your expertise in derivative trading.

3. Identity Verification

   After setting up your new micro account, you must verify your identity by uploading copies of the relevant documentation. This usually includes submitting photos of a government-issued identification document, bank statements, bank card (front and back), and recent utility bills to confirm your permanent address. You can take the photos directly with your smartphone after scanning the QR code generated by your broker.

4. Funding Process

   Once you verify your identity, you must add funds to your new micro account from the dedicated client area. Most brokers facilitate instant and fee-free deposits with familiar payment methods like credit/debit cards, bank and wire transfers, digital wallets such as Paypal, Bitcoin and online banking. Select a deposit method, specify the amount you want to transfer, and follow the prompts to confirm the transaction.

5. Connecting Micro Account to Trading Platform

   You will receive unique identifiers via email to link your new micro account to your preferred trading platform. These typically include a trading account number and platform ID. Enter your email or platform ID, and the password you previously selected to access your account and start exploring the forex markets.

Other Common Lot Sizes Available to Forex Traders

Apart from standard and micro lots, many forex brokers facilitate trading in mini and nano lots. A single mini lot comprises 10,000 units in the base currency of a forex pair, or one-tenth of a standard lot. As you perhaps remember from our previous explanations, standard lots consist of 100,000 base currency units. To proceed with the EUR/USD example from earlier, a trader must put down $12,000 to purchase €10,000 (one mini lot) at an exchange rate of 1.2000.

Cent, or nano lots, are also available at some brokers and represent the smallest possible position size in forex trading. A single cent lot equals 100 base currency units, or one thousand times less than a standard lot. A price fluctuation of one pip corresponds to a single cent when trading in nano lots. Returning to our EUR/USD example, traders will need $120 to buy €100 at a bid price of 1.2000, or one nano lot of euros.

Successful trades in micro and nano lots yield smaller profits compared to standard and mini lots. The same applies to your potential losses. Larger lot sizes require investing more capital or using higher leverage ratios, resulting in increased risk. This is because single-pip price fluctuations are larger when trading standard and mini lots as you can see in the table above.

Advantages of Registering a Micro Trading Account

Micro accounts offer multiple benefits to retail customers who wish to earn additional income from forex trading. Small-scale traders can gain exposure to the forex markets without putting down substantial capital. Price movements have a less dramatic impact on your live balance as a single-pip change corresponds to $0.10 when trading in micro lots.

Reduced volatility enables forex beginners to concentrate on learning the ropes rather than worrying about significant losses. Trading with a live micro account allows you to build practical experience in real-life market conditions without investing considerable amounts. Most micro accounts either require low starting deposits or have no minimum deposit requirements.

Disadvantages of Using Micro Trading Accounts

Their smaller position size renders micro accounts unsuitable for large-scale traders seeking greater market exposure. Trading in micro lots translates into lower potential returns from successful trades, which is another unappealing feature from a seasoned trader’s perspective. Witnessing considerable investment growth will take longer this way.

Finally, we should mention the mounting transaction costs that could result from trading in micro lots. When using this trade size, traders enter and exit positions more often than they normally would when dealing with mini or standard lots. Increased trade frequency could eat into your profits and prevent you from meeting your investment goals. Spreads and commissions, as minor as they are, could add up over time and take their toll on your balance.

Z. Stefanova