A mini forex trading account is 1/10 of the size of a standard account and allows you to receive the services of the broker of a standard account. Thus this account allows novices to practice in the real world without losing much money. It is also ideal for traders with low start up capital.

A mini account overshadows the apparently attractive demo account which allows the novice to practice currency trading with a toy account sans real investment. This is because a demo account may sometimes instill false confidence when the trader practices profit making strategies that are not feasible in the real world.

When these traders come to the real market, they may lose their self assuredness and be overwhelmed by the market scenario. This will make them waiver between plans and lose money. The ideal action would be to use the demo account to learn technicalities and perform forex reviews, switching immediately thereafter to a mini account. This will allow performance of small trades that will be beneficial in developing skills useful in the long run.

The only drawback of the mini account is the lofty percentage payment to be made to forex brokers. However, mini accounts can help newbies find out if they are good at forex business, with minimum risk.