What type of account to choose? - Page 234
Page 234 of 236 FirstFirst ... 134184224230231232233234235236 LastLast
Results 2,331 to 2,340 of 2354

Thread: What type of account to choose?

  1. #1
    Super Moderator RoboForex Trader's Avatar
    Join Date
    Dec 2012
    Posts
    489
    Thumbs Up
    Received: 142
    Given: 33

    What type of account to choose?

    Beginner traders often have questions about types of accounts – what type to choose, with fixed or dynamic spread? Roboforex company has 2 types of cents accounts: fix-cent (with fixed spread) and pro-cent (with dynamic spread). Know more about it on the company’s website: http://www.roboforex.com/trade-condi...account-types/

    Fix-Cent

    Features: Fixed spread, 4 digits after decimal point, «Instant Execution» mode.

    Instant Execution allows to execute orders immediately. This type of execution allows to trade with fixed prices what means that order will be either executed by indicated prices or rejected (trader will get requote). This type of order is useful for traders who need certain prices for execution and don’t want to have «slippages» while execution. Disadvantage of this type of order: trader will be unable to enter his position in case of aggressive price action – he/she will get requotes in most trades. That’s why this type of account has 4 digits after decimal point (to avoid numerous requotes). Such accounts are convenient for beginner traders. But you should remember that if there are no requotes – there is no instant execution.

    Pro-Cent

    Features: Dynamic spread, 5 digits after decimal point, «Market Execution» mode.

    Market execution mode allows trader to have nearest best prices for his trade. Order will automatically match with best price for the given moment. This type of execution is used also on futures and stocks exchanges and other marketplaces. Traders, who traded before on «Instant Execution» will note that execution time will increase with «Market Execution» more and quotes will change much more rapidly (because of additional digit after decimal point). 10 pips on «Pro-cent» wil be equal to 1 pip in «Fix-Cent» account. 5 digits are better for automatic execution when trader uses robots.
    Now, when we know differences among «Pro-Cent» and «Fix-Cent» accounts, let’s see some documentation: http://www.roboforex.com/trading-accounts/documents/

    For now, we can see release of trading conditions from August 13, 2013.

    Let’s go to «General provisions», I advice to pay some attention to point 6.6

    6.6. For accounts Fix-Cent, Fix-Standard and Fix-ECN spread specified in the contract specifications, is a fixed, but can be increased from 22:00 to 06:00 server time.
    Also, points 7.5 and 7.6

    7.5 In process of Instant Execution of Client’s order, the price quoted in the order is compared with the current price. In case the current price differs from the price quoted in the order, a new price will be proposed with comment “Requote”. In case Client does not accept the new price within 3 seconds, it will be considered that the transaction is cancelled.
    7.6 In case of Market Execution, execution of Client’s order will be made at the current price at the moment of order execution.
    Points 12.1.1 and 12.3.1.

    12.1.1. Stop Out value makes 10 % for Fix-Cent and Pro-Cent accounts on Metatrader 4 and Metatrader 5 platforms.
    12.3.1. Margin Call value makes 40% for Fix-Cent and Pro-Cent accounts on MetaTrader 4 and Metatrader 5
    Point 6.6 allows to increase spread. It means that we are dealing with conditionally fixed spread. Point 7.5 guarantees certain price for a trader in a period no more than 3 seconds. Point 7.6 indicates that orders are executed by market price, therefore some slippage may occur. Points 12.1.1 and 12.3.1 indicate that Stop Out and Margin Call levels are equal for both types of accounts.
    Now, when you know those nuances from trading conditions, let’s see how these conditions are realized in actual trading process. To accomplish this goal, we will go to historical tick charts of EURUSD since 30.09.2013 till 4.10.2013 (GMT+3) for the whole week.

    Fix-Cent

    Spread was as stable as 2 pips without any changes. Probably, this week was pretty quiet and there were no significant news or drivers for the market.

    Pro-Cent

    Let’s dig deep into details and make small research.
    Before we start, I will remind once again that 2-pips spread on Fix-Cent means 20-pips spread on Pro-Cent.
    I’ve divided one day on two sessions: Day session (6:00 – 22:00) and Night session (22:00 – 6:00), timezone is GMT + 3. Picture 1 shows lowest, average and highest values of spread.


    Picture 1. Spread value distribution on Pro-cent accounts.

    If we look at highest values, we may think that Pro-Cent accounts have wider spread, than Fix-Cent accounts, but it isn’t so. Ticks with spread more than 20 pips are less than other ticks (with spread lower than 20 pips). Let’s go through some cases.

    Case № 1

    Monday night we have seen the highest spread for the period, highest value is 92 pips. It’s worth mentioning that highest spread occurred before 1:15 (Night session), then values were no less than 20 pips. We can see it on Picture 2.

    Pic. 2. Spread value on Pro-Cent accounts

    [свернуть]


    Case № 2

    During news announcements, in some cases, spread is widening and achieves highest levels for the day. Let’s take one situation from 1.09.2013. There was economic data release. As we see, at 17:00 (terminal time) during USD ISD Manufactirung and USD ISM Prices Paid release, we have seen increased spread. Picture 3 shows spread values between 16:59 and 17:00:01 (highest values), then spread was decreased and 10 seconds after it decreases to 20 pips.

    Pic. 3. Spread value on Pro-Cent accounts

    [свернуть]


    The rest of the time period spread was lower than 20 pips. We can see it clearly on Picture 4, that shows value of spread of the whole day.

    Pic. 4. Spread value on Pro-Cent accounts during news announcement release

    [свернуть]


    Now, when you’ve gone through all nuances, we can make some conclusions.

    Fix-Cent accounts are more suitable for traders, who trade during high volatile market conditions (during news announcements for example) because spread there is fixed. But also, their orders can be rejected due to slippage (they will get requotes). Also, this type of accounts will be suitable for those who trades during the opening and the closing of the week (wide spreads occur during those periods). Fix-Cents accounts have wider spread than Pro-Cent. That’s why those trades who avoid news announcements and scalpers should better trade using Pro-cent accounts despite possible slippage. But be aware of news announcements time!

    I thinks, that analysis in this thread will help beginner trader make choice due to personal trading style.

    Not allowed!
    Last edited by RoboForex Trader; 11-04-2013 at 02:26 PM.

  2. #2331
    Trader
    Join Date
    Aug 2015
    Posts
    12,807
    Thumbs Up
    Received: 122
    Given: 24
    Azis Muslim, actually cent and standard can have same risk if we are using some big leverage we can take max risk but you are right if we want to secure account we can set leverage to low, but we are mostly greedy we people uses bigger lot and if we move slowly in start also after that we change leverage for some big orders, so that is wrong way to trade and we can just lose in that way

    Not allowed!

  3. #2332
    Trader
    Join Date
    Nov 2017
    Posts
    7,129
    Thumbs Up
    Received: 37
    Given: 68
    Quote Originally Posted by naeem555 View Post
    Azis Muslim, actually cent and standard can have same risk if we are using some big leverage we can take max risk but you are right if we want to secure account we can set leverage to low, but we are mostly greedy we people uses bigger lot and if we move slowly in start also after that we change leverage for some big orders, so that is wrong way to trade and we can just lose in that way
    But with what I have learned so far so good, I think the trading on the cent account is for the new traders who don't understand the market. Then they can gradually get to understand the market, using the cent account helps a trader to know how they can manage their trades and then trading with good money and risk management to increase their earnings potentials.

    Not allowed!

  4. #2333
    Trader
    Join Date
    Aug 2015
    Posts
    12,807
    Thumbs Up
    Received: 122
    Given: 24
    Quote Originally Posted by Makaveli View Post
    But with what I have learned so far so good, I think the trading on the cent account is for the new traders who don't understand the market. Then they can gradually get to understand the market, using the cent account helps a trader to know how they can manage their trades and then trading with good money and risk management to increase their earnings potentials.
    its not like if we use cent account it means we will use smaller risk, in reality we can take big risk on cent account also and can take minimum risk on standard account also, so make sure you have ability to trade then you can earn well with any way, if you have control you can use any account and can earn, so make sure you practice well and trade properly with it, i believe we can earn if we work with some good management and good analysis but security is must first

    Not allowed!

  5. #2334
    Trader Yayami's Avatar
    Join Date
    May 2016
    Posts
    2,320
    Thumbs Up
    Received: 37
    Given: 26
    Quote Originally Posted by naeem555 View Post
    its not like if we use cent account it means we will use smaller risk, in reality we can take big risk on cent account also and can take minimum risk on standard account also, so make sure you have ability to trade then you can earn well with any way, if you have control you can use any account and can earn, so make sure you practice well and trade properly with it, i believe we can earn if we work with some good management and good analysis but security is must first
    i think it should be automatically done whenever you choose cent account, you'll be trading with smaller risk because in the sense of trading, we'll be seeing our account has 100 times bigger than our initial deposit. don't bother taking big lot size to trade and focus on making a quality trade with quality analysis, which takes more time to do. remember our main goal to choose cent account, it's to practice trading and learn to get focus while trading.

    Not allowed!

  6. #2335
    Trader
    Join Date
    Aug 2015
    Posts
    12,807
    Thumbs Up
    Received: 122
    Given: 24
    Quote Originally Posted by Yayami View Post
    i think it should be automatically done whenever you choose cent account, you'll be trading with smaller risk because in the sense of trading, we'll be seeing our account has 100 times bigger than our initial deposit. don't bother taking big lot size to trade and focus on making a quality trade with quality analysis, which takes more time to do. remember our main goal to choose cent account, it's to practice trading and learn to get focus while trading.
    no this is not like if we are choosing cent account we can place more orders? we can have more leverage also,so with using or cent account automatically our trading will not be limited, we can limit our trade to some profit or loss or risk if we have good management if we have control on mind, so give it time and attention to learn as much as you can, no one survive without some good management this is reality

    Not allowed!

  7. #2336
    Trader
    Join Date
    Oct 2018
    Posts
    2,376
    Thumbs Up
    Received: 10
    Given: 7
    Quote Originally Posted by naeem555 View Post
    no this is not like if we are choosing cent account we can place more orders? we can have more leverage also,so with using or cent account automatically our trading will not be limited, we can limit our trade to some profit or loss or risk if we have good management if we have control on mind, so give it time and attention to learn as much as you can, no one survive without some good management this is reality
    there is much difference in trading really because on cent account our big lot also can be small but i think people uses cent accounts also when they want to earn slowly and some small profit, we can choose a standard account for trading like i have small capital but using and earning reasonable profit from it also. i hope in some months i will make it strong

    Not allowed!

  8. #2337
    Trader juniorpeters's Avatar
    Join Date
    Apr 2018
    Posts
    4,460
    Thumbs Up
    Received: 32
    Given: 43
    i really don't like to trade the market using a cent account no matter how small the trading account will be.i prefer to trade with a standard account right from when i started trading because its a lot more easier to make profit from the market using a standard account than a cent account.although new traders are usually advised to use pro cent account because of risk management purposes.

    Not allowed!

  9. #2338
    Trader sniper007's Avatar
    Join Date
    Jun 2017
    Posts
    10,929
    Thumbs Up
    Received: 81
    Given: 146
    Quote Originally Posted by naeem555 View Post
    no this is not like if we are choosing cent account we can place more orders? we can have more leverage also,so with using or cent account automatically our trading will not be limited, we can limit our trade to some profit or loss or risk if we have good management if we have control on mind, so give it time and attention to learn as much as you can, no one survive without some good management this is reality
    Yeah, with the cent account then you can place more order because then the risk management will be effective. Trading has to be done based on the right approach that will help traders master the risk management. Using the standard account will only get you to have so much risks been taken too, so basically it is more better to trade with the use of the cent account mostly for the new traders.

    Not allowed!

  10. #2339
    Trader
    Join Date
    Aug 2015
    Posts
    12,807
    Thumbs Up
    Received: 122
    Given: 24
    Quote Originally Posted by sniper007 View Post
    Yeah, with the cent account then you can place more order because then the risk management will be effective. Trading has to be done based on the right approach that will help traders master the risk management. Using the standard account will only get you to have so much risks been taken too, so basically it is more better to trade with the use of the cent account mostly for the new traders.
    this is why i mention risk can be manage just with management not with account types, or we can use very small leverage to manage but the issue is whenever we become greedy we can change it in some minutes, so if we have control on self we can use management otherwise we can take more or max risk as well, so use a good approach to limit some your trading

    Not allowed!

  11. #2340
    Trader
    Join Date
    Oct 2018
    Posts
    2,063
    Thumbs Up
    Received: 10
    Given: 19
    Account type is also a big decision of a trader which is very necessary to take right decision. When a trader doing demo practice and comes in live market he is not aware about the risk of loss in this business so in this situation if he choose a standard account then he can face big loss. but, if he will try to do trade with any cent account then he always do trade with confidence.

    Not allowed!

Page 234 of 236 FirstFirst ... 134184224230231232233234235236 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •