What Is a Forex Cent Account? Learn the Basics!

What Is a Forex Cent Account? Learn the Basics!

Do you want to make a lot of money via trading? You can! You usually have to learn a lot before you can make a profit.

That usually means losing money to learn valuable lessons. This has happened to me, too! We have a solution for this.


Sure, you can create a demo account – but playing with imaginary money gets boring. Opening a Forex Cent Account will help you learn about trading while investing real money.

What’s a Forex Cent Account?

It’s a minimal trading account that uses cents for transactions. There’s an entire world of possibilities for beginners using this type of account. A Forex Cent Account is a beginner account that uses cents instead of dollars as a basic unit.

That may seem like a small difference to make a fuss about – but it makes a big difference when trading! When you open a Forex Cent Account, your balance will be the first thing you notice. Standard accounts will show what you have in dollars: $1, $10, $100, etc.

With a cent account, you’ll see your balance in cents instead: 100 cents, 1,000 cents, 10,000 cents, etc. Splitting your balance in cents instead of dollars helps you organize your trades in smaller amounts. That way, you can make plenty of trades with very little money – and better understand what you’re doing when you’re just starting.

Several wealthy traders have started this way! For example, Tim Grittani started with less than $1 per trade and became a millionaire. You can start a forex cent account with as little as $1, giving you 100 cents to trade. While you can profit without investing money, this account is a great learning tool.

Pros and Cons of a Forex Cent Account


  • Perfect for beginners: Opening a forex cent account wasn’t possible until 2006. Experts then realized beginning traders needed a new type of account to learn about trading without wasting money. This makes forex cent accounts perfect for beginners – experts invented them just for that purpose.
  • Low risk: Nine in ten beginner traders lose all their money. It’s part of the process. You can try to go all out and risk everything early on – or you can play it smart with a forex cent account and trade with only a little money as you learn valuable lessons.
  • It’s a stepping stone: The real purpose of a cent account is not to make a big profit. That comes later! For now, you have to learn to play the game. A cent account is the perfect middle ground between a demo (using imaginary money) and a standard account (using more money than you should).


  • Small profits: You’re not going to make much money with a forex cent account. You’re investing in cents – so you will make a few more cents in return. That will feel discouraging at first. Don’t let that fool you! Try to put it in perspective and think about how much money you would’ve lost if you invested dollars instead of cents. People usually need to invest a minimum of $500 or $1000 before making considerable profits.
  • Easy to develop bad habits: Overconfidence in your trades happens since you’re spending cents. You have to treat 1000 cents as if they were $1000 – otherwise, you will develop bad habits that are hard to eliminate in the long run. Make sure you treat a forex cent account as a standard account.
  • Difficult to stop using: Another big problem with using a forex cent account is getting used to it. You start to get comfortable with it – and may see investing big dollars as too risky or problematic. Remember, a forex cent account is a learning tool – not the real thing!

Are there any differences between a Standard Account and a Forex Cent Account?

There are two differences between a standard and a cent account: the what and where of things are different – what you use to invest and where you can do so. The first thing you already know. Forex cent accounts use cents as a basic unit. And while that helps you to better learn about trading – it also limits your opportunities to trade.

How does a forex cent account limit your opportunities? 

Well, there are a lot of markets that won’t allow you to trade using a small amount of money. So, you’ll have limited options of where to invest that way. For example, most forex brokers ask for a minimum initial deposit of between $100 and $25,000!

That shouldn’t be a problem, though! It’s good to have fewer options early on. Focus on learning about the basics instead of feeling overwhelmed with many options.

Should you open a Forex Cent Account?

Should you open a Forex Cent Account?

Are you a beginner trader? Then yes, you should open a forex cent account. Veteran traders can also benefit from doing the same.

Should you open a Forex Cent Account?

Let’s look at why beginners should open this type of account. Learning how to make money is somewhat complicated. Because of that, you need a stepping stone to figure stuff out. Investing in cents instead of dollars is the perfect opportunity to do that!

We know plenty of beginner traders who have lost a lot of money going for a standard account – we’re talking about losing $400 or $500 before they decide to do something else. If you’re going to lose money, lose 500 cents instead of $500! Successful traders know when to move forward.

Veteran traders can use forex cent accounts to their advantage as well. Before using a new trading platform, you need to avoid scams. Be careful! People lose more than $5 billion every year. Investing in cents for a while and cashing out could help you tread water before you dive too deep – and allow you to see whether you’re about to fall for a scam.

Further reading

How much money do you need to open a Forex Cent Account?

How much money do you need to open a Forex Cent Account?

You only need $1 to open a Forex Cent Account. That’s what’s so great about it! Learning about the ins and outs of forex trading requires very little capital. After a while, you can move to bigger things.

Beginners should use this type of account for a long time before doing anything else. Although $1 seems like a small amount of money, you shouldn’t view it that way.  When using a Forex Cent Account, you will see $1 as 1000 units.

Treat those units as if they were $1000 – and make it your goal to grow that to ten times as much money. If you lose, you lose nothing but one dollar – but if you accomplish your goal, you’re ready to move on to bigger and better things.

Can you make money using a Forex Cent Account?

You can (and hopefully will) make money using this beginner account. Unfortunately, it’s almost impossible to make a living by trading cents, no matter how much effort you put into it.

It’s important to stress that a Forex Cent Account is more a learning tool than an investing platform. You will save a lot of money by trading cents instead of dollars – because you won’t lose as much money as you would with a standard account.

You have to see it this way: you’re not making a lot of money now – but you’re learning valuable lessons that will help you make money later. The first few successful trades you’ll make will be invaluable no matter how little the profit – it’s a unique feeling!

Further reading

What about making big profits?

What about making big profits?

The forex market has increased its volume by $32 trillion since 2008 – so you can make a lot of money trading there.

Unfortunately, you cannot make that much money with only a few cents as your capital. When you feel you know enough, you can move to other types of accounts.

What about making big profits?

Some scientific concepts will help you understand why cents are insufficient to make a big profit. The 80/20 Trading rule explains why you need to capitalize before getting a considerable investment return.

Don’t rush the process, though! Trying to run before you can walk will hurt your wallet and learning pace. Take a look at Warren Buffet: he worked since he was ten years old – and it took him decades to become a millionaire! He started from the bottom and worked from there.

Should you open a Forex Cent Account as a beginner?

Beginners should open forex cent accounts as soon as they can. If you’re a beginner, you shouldn’t waste time thinking about whether to open a standard or a cent account – you should open a cent account straight away.

Demo accounts and learning apps are great ways to learn the basics. After all that theory, you need to roll up your sleeves and get to work – but you shouldn’t risk all your money to do so. Open a forex cent account to learn trading with real money (with minimal risk). After that, you can move to other types of accounts.

Can you move to other accounts later on?

Of course! That’s the main point of creating a forex cent account. Learn about trading, develop good habits, understand how risk and reward work, and move on to bigger and better things later. When you’re confident in your trading abilities, create a standard account.

Wait until you’re ready to trade big money before you move on. It takes a little while to learn – make sure you know the basics before creating another account!

Further reading