When you are a new trader researching on the various topics of trade, you will come across some consistent terms. For instance, on every broker’s website, you will see the topics “trading platform”, “trade training”, among many others. One such recurring term that you will come across will be “Account Types”. From my time as a new trader until now, I have researched and gathered experience with many different brokers. I have also tried out the different account types they offer. I found that the most typical account types on a broker range from a beginner level account to a VIP account.
You will have to pick out an account type that suits your requirements. Most of the time you will find the descriptions of the services these accounts offer on the broker’s website. Easily comparable and comprehensive methods are used to highlight the difference between these accounts.
Some brokers provide you with account types that differ by the methods of trade rather than benefits. One such broker that provides these kinds of account types is FXOro. The broker provides four different account types where the three of them are for trading with different spreads and the fourth is the Islamic banking option.
Let’s take a look at the account types FXOro offers and their benefits.
FXOro provides users with 3 main account types and they are not categorized as the other broker websites. The three account types are mainly Fixed Spread Accounts, Variable Spreads Account and Electronic Communication Network (ECN). Another account type that this broker provides is the Islamic account.
Let me explain the difference between these three accounts.
Fixed Spread Accounts
A spread is a difference between the buying (bid) and sale (ask) price of a currency pair. With Fixed Spread accounts your spreads remain the same even during the changing conditions of the market. This means that the spread will remain consistent at all times. Fixed spreads provide the benefit of curbing the market volatility and reduce risk factors associated with trading. It lets you trade with a peaceful mind since you don’t have to worry about the volatile market conditions.
This great feature comes at the cost of 2 pips which is the starting rate of spreads on such accounts. The maximum available leverage for this account is 1:400. The minimum deposit value to register for this account is $200. Fixed spread accounts are useful for new traders because it provides a sense of stability during a trade. No commissions are charged on this account by FXOro.
Floating Spread Accounts
You will experience the volatile market conditions with this account. Floating spread accounts are cheaper to trade than fixed accounts. However, you will find that their inconsistent value is difficult to manage. You will have to make quick trade decisions with this account. So, the spread value of this account type depends on the market conditions. When something important is in the market, you will be faced with low spreads which are as low as 0.3 pips. But when the market is at peace, the spreads can be as high as 5 pips.
The spread for this account starts at 1.2 pip, which is a reasonable amount. Moreover, you have to pay a deposit fee of a minimum of $1000 to open this account. The leverage provided for this account has a limit of 1:200. Just like fixed spread accounts, commissions are not charged. These accounts are more suitable for traders with experience in the field since quick evaluations need to be made for trade.
Electronic Communication Network (ECN) Accounts
These are accounts with advanced features that are designed for traders with great monetary strength. So, you will need to have the highest-rated currencies for this trade. On this account, the spreads start at 0 pip. Margin stop out levels for this account can move to more than 50%.
The leverage for this account maximizes at 1:100. You will have to deposit a minimum initial amount of $5000 to trade on ECN accounts. Furthermore, FXOro charges a commission of $6 per lot on this account.
If you are a Muslim, then chances are that you are going to have a harder time finding the right broker. This Is because Muslims need to abide by the Sharia law, which is the Islamic law of trade and does not allow paying or accenting interest in any form. From my experience, I have discovered that while many brokers, including some of the top leading ones in the market, do not provide the facility of Islamic banking. For this reason, many Muslim traders are not able to sign up with their favorite traders and have to settle for average or low-rate traders. However, many brokers also provide Islamic banking. FXOro is one such broker that provides separate banking options for Muslims.
This broker caters to the need of all possible traders. With the Islamic banking option, FXOro allows Muslim traders to take advantage of their trading technology and deep liquidity. Muslim traders can enjoy the facilities and services provided by FXOro without the implication of swaps or overnight interest rates that are not allowed in Islam. The trading account is compliant with the Sharia laws.
The one thing that I really liked about this broker is that it did not create a separate account for Islamic banking. Instead, they added the option of Islamic accounts with all the other existing accounts. So you can trade with fixed spread accounts, floating spread accounts, and ECN accounts with the Islamic account laws incorporated in them. So, you can trade within the boundaries of your religion, as well as take advantage of all the facilities and services that this broker provides.
One thing to be noted is that with Islamic accounts, you can only trade using the USD on this broker.
FXOro is one of the leading online brokerage firms today and is well-known for the services they offer the brokers. I talked about their different account types in this article. What you will notice is that the account types this broker provides match the requirements of all kinds of traders. From novice to experienced traders to Muslim traders who usually face difficulty in finding a suitable broker.