What is Cent Account? How Does It Work in Forex Trading?

The term cent account has been and continues to be quite commonly used within the FX market, where it has notably influenced the investor's choices in the decision making process of picking a fitting forex broker to work with. 

In this article, we would like to give the basic but important information about cent account and offer an experienced point of view to help you make informed decisions and choose the best cent account for FX trading.

What is A Cent Account?

Forex trading using a cent account is called as cent trading. It is the same as standard trading with standard account respectively. It requires less money to trade compared to the standard account hence the earnings, as well as risks, are less too.

A cent account is a Forex trading account denominated in USD cents instead of the US dollars. Cent Account is a popular choice among the beginning traders and usually chosen with the purpose to engage into the real trading environment without a significant amount of investment.

Basically, a forex cent account is a forex account which lets investor newbies trade in the market with smaller trading amounts and lot size positions. Trading with a cent account lowers risk and limits possible losses. 

How does FX Cent Account Work?

As a forex trader, it is usually to be learned that account options primarily attract new or inexperienced investors, due to the smaller size of the contract. This makes sense, as you can trade with little to no chance of a huge loss. This can be really helpful for traders who are still learning how to trade forex.

In most situations, cent account holders have the opportunity to enter the same trading tools and markets as standard account holders (charts, analysis, customer support, platforms, etc.).

The smaller lot size also enables well-seasoned traders to place more diverse orders, by means of expanding the number of incognito funds over a selection of currency pairs. Furthermore, newbie investors can better manage their risk, due to the smaller bet size.

Advantages of Cent Account

Getting opportunity to decrease the minimum available position size to 0.0001 of a standard lot is the biggest advantage of a cent account. While some brokers make it possible to trade with 0.00001 lot (1 currency unit) with their proprietary platforms, getting below the 0.01 lot size is impossible in MetaTrader platform without resorting to using a cent account. Other advantages are derived from this one:

>flexibility in employed position sizing techniques,

>reduced risk when starting out with a new broker,

>appeal to the poorer traders who cannot afford to hold a non-cent account,

>testing strategies and trading robots no longer requires reduction of the nominal position size. It is also possible to test expert advisors where such adjustment isn't possible at all.

Disadvantages of Cent Account

The greatest disadvantage of cent account is hidden in the fact that the majority of forex brokers offering such a service limit the maximum account and position size to keep the usage down to a minimum. It is seen as a nice way to promote a business, but companies prefer to make money with live cent account. Generally, traders will see the following drawbacks in using the cent accounts:

>lower account size and position size maximums,

>higher Bid/Ask spreads to compensate brokers,

>usually, traders with cent accounts cannot expect the same level of customer service as holders of bigger accounts,

>cent account holders have to be careful with deposit/withdrawal fees, which can be set to elevated levels compared to dollar accounts.

List of Forex Brokers with Cent Account

Forex trading has always been a catchy thing among investors and lately, more retail investors have started investing in it. However, making decent money is not easy. High risks are involved and hence it is suggested to opt initially for cent account, which primarily caters to those who dislike risking a lot of money in the forex market.

Find a list of Forex brokerage companies offering the cent account in the table below. 

Brokers	Detail	More Information
	Founded: 2009 Headquarters: Russia Min deposit: 1 USD Max Lev: 1 : 1000	FBS Review
	Founded: 1998 Headquarters: Cyprus Min deposit: 0 USD Max Lev: 1 : 1000	FIBO Group Review
	Founded: 2014 Headquarters: Vanuatu Min deposit: 50 USD Max Lev: 1 : 1000	Forex Chief Review
	Founded: 2007 Headquarters: BVI Min deposit: 0 USD Max Lev: 1 : 1000	Forex4you Review
	Founded: 2013 Headquarters: Belize Min deposit: 1 USD Max Lev: 1 : 1000	SuperForex Review

Notes: the min deposit and max leverage are specifically used for cent account.

Conclusion

The cent account under very high levels of leverage might be very tricky, thus you should choose carefully the broker you deal with. In the above, we outline the benefits and non-benefits of a cent account.

However, it is impossible to choose the best cent account in Forex for both beginners and professional participants, instead, you can only find the fittest one for yourself. The best advice anyone can give is to exercise extreme caution while dealing with cent account. As beginners, we recommend you begin with a small amount of money.