Best Micro Currency Trading Platforms

Benzinga's top picks for the best micro currency trading platforms are City Index and IFC Markets.

The forex trading market is available 24/5, making it appealing to international traders unconcerned about time zones. Because currencies are affected by global events, they tend to yield significant price action. Traders who position themselves with the movement of the market can profit handsomely.

But forex trading is risky, especially if you choose the wrong broker. You have to know the factors to analyze in determining a legit broker. Benzinga has reviewed the best micro currency trading platforms and provided guidelines for improving your finances. 

Quick Look: Best Forex Micro Currency Accounts

• Best for Currency Pair Selection: City Index
• Best for Major, Minor and Exotic Currency Pairs: IFC Markets
• Best for Copy Trading: eToro
• Best for Low Fees: RoboForex
• Best for Ease-of-Use: FOREX.com
• Best for CFD Trading: HYCM

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Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Best Micro Currency Trading Platforms

Start micro currency trading with these top platforms to be sure you are working with the most reputable brokers.

1. Best Currency Pair Selection: City Index

Traders who are new to micro currencies can test City Index’s platform via the live demo account. Users will get access to more than 13,500 markets and unlimited features to the TradingView charts, as well as Trading Central analysis and many other advanced tools.

Besides offering the MetaTrader 4 platform, City Index enables mobile traders access to the same features as the desktop version, but it’s conveniently designed for mobile devices. Traders have access to more than 80 currency pairs.

The platform doesn’t charge a commission for trading forex, commodities, indices and cryptocurrencies. But it charges stock traders a commission, varying based on the share market traded. The platform offers tight spreads for major currencies. Funding an account is possible via debit/credit cards, bank transfers and Paypal. The platform doesn’t stipulate a minimum deposit but recommends at least $130.

All deposits and withdrawals are free. City Index limits online withdrawals to £20,000 in a single transaction, which is equivalent to $24,000. Online credit card withdrawal is also limited to $24,000 within 24 hours, and withdrawals take three to five business days to reflect in a customer’s account.

You can access free courses, lessons and webinars on the platform. City Index also provides SMART signals, an AI-powered algorithm that provides you with potential trading opportunities. Otherwise, you contact 24/5 customer support for any queries.   

2. Best for Major, Minor and Exotic Currency Pairs: IFC Markets

IFC Markets is a global platform that is regulated by the British Virgin Islands Financial Services Commission (BVI FSC) and the Labuan Financial Services Authority (LFSA) in Malaysia. Because these are minor regulators, the platform does not operate in some countries, including the U.S.

IFC Markets has won numerous awards internationally – eight in all – and offers traders a robust platform, including a customer service department that is considered excellent by its clients. The platform services 185,000 clients in 80 countries.

3. Best for Copy Trading: eToro

eToro enables traders access to markets such as currencies, stocks, commodities, cryptocurrencies and exchange-traded funds (ETFs). If you’re a new trader, you shouldn’t have issues navigating the platform, and you’ll get access to the education center that offers tutorial content, news and market analysis.

This platform hasn’t left beginners in the lurch because it has enabled them to copy the trades of professional traders. The feature is called CopyTrading, and it enables traders to see the positions that pro traders have taken and to do the same. The best part about this service is that it’s free. 

You have several options to deposit funds such as bank wire, cards, Skrill, Neteller, Paypal and Webmoney. The minimum deposit is $10. eToro doesn’t charge for deposits, but withdrawals carry a $5 fee. More than 49 currency pairs are available for trading, and eToro offers 0% commission for stock trading.

Protecting investor funds is crucial, and eToro wants to ensure traders that it complies with strict financial measures. That’s the reason it is regulated by several financial authorities such as the U.S. SEC, CySEC, FINRA and ASIC.

4. Best for Low Fees: RoboForex

RoboForex has over one million clients spreading across 169 countries. It boasts low fees and traders can get in with only a $1 minimum deposit. The platform does not charge deposit or inactivity fees.

Larger traders may find that RoboForex does not scale as much as they need, but this platform is excellent for beginner and intermediate traders.

5. Best for Ease-of-Use: FOREX.com

FOREX.com is a well-rounded platform that makes it easy for beginners and advanced traders alike to organize their trades without a lot of fees. The platform is easy-to-navigate and traders have access to over 80 currencies to buy and sell.

What’s more, traders have access to tons of research and educational resources to help them up their game. FOREX.com is considered one of the most comprehensive trading platforms in the world.

6. Best for CFD Trading: HYCM

HYCM is known for its 24/7 superior customer service, but the platform has a lot more to offer. It processes 25,000 orders a day and allows traders to trade on MetaTrader 4 and 5 as well as its own proprietary app.

You will have several account options with this platform. You can sign up for an account with no commission, or you can get an advanced account and pay $4 per round. You find pip ranges from 0.1 to 1.5 and leverages of up to 500.1.

Features to Look for in A Micro Currency Trading Platform

Knowing if you’re trading on the right platform requires you to analyze a few features to determine if the offerings coincide with your investing strategy.

Benzinga found several key features that serve as guidelines for you to examine.

Regulations

An important aspect of a brokerage is the regulations it is party to. Brokers need to prove to you that a regulatory body is watching over them to ensure they won’t mismanage your funds. The way to do that is by seeking regulations from financial authorities.

These financial watchdogs ensure that brokers adhere to stringent financial procedures and enforce penalties for disobedience. Authorities such as the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) ensure market integrity and enforce rules governing registered brokers.

By registering with such authorities, brokers show clients that they are serious about providing ethical services and protecting client funds. 

Fees

Many traders are concerned about the potential profits they can make, but some don’t question all the fees involved. Although a trade can provide significant returns, high fees can drastically lower profits. On the other side of the spectrum is losing trades. High fees increase losses and can dissuade traders from continuing. 

Besides maintaining reasonable fees, brokers need to be completely transparent about them. You need to ensure that you’re familiar with all the fees a broker charges such as overnight fees, inactivity fees and account maintenance.

Trading Platform

A broker should offer a demo account so that beginners can practice. Having access to a demo account also helps beginners get a perspective of the potential results in a live environment. Advanced traders use demo accounts to see if the platform offers features compatible with their desired trading strategy.

A platform should contain advanced tools, and brokers should cater to mobile traders. The mobile app should be convenient to trade on mobile screens and contain all the key features.

Assets

Most brokers provide access to majors and minors. Some platforms even offer exotics. Many traders prefer a platform that allows them access to numerous currency pairs. The market doesn’t always provide trades on the major pairs, so active traders seek trades on other pairs.

The more pairs a platform offer, the easier it is for traders to open trades. Platforms should offer various markets. If you’re looking for the best stocks to buy, you’d want a broker offering a large selection of securities and preferably commodities as well.

What is a Micro Lot?

A micro lot is a smaller unit of currency trading typically used in foreign exchange trading. It represents 1,000 units of a particular currency. Micro lots are popular among beginner traders or those with smaller trading accounts, as they allow for smaller investments and reduced risk compared to standard lot sizes.

Trading in micro lots can provide you with the opportunity to practice trading strategies, gain experience, and gradually increase your trading activity as you become more confident and successful in the forex market.

How to Invest in Micro Currencies 

Opting for micro currency trading means choosing a micro lot — a preset amount of 1,000 units of currency or one-hundredth of a standard lot. Opening a trade is simple, and here are the steps.

Open an Account

After you’ve selected a regulated broker that offers low fees and numerous assets and markets, you need to register an account. That entails visiting your preferred broker’s website and signing up with an email and a password.

A regulated broker requires you to verify your account. Besides verifying your email address and mobile number, you may need to upload an identification document and a utility bill.

Choose an Asset

Whether it’s forex pairs or building up a stock portfolio of the top 5 stocks under $5, you need to decide on the asset to trade. Do a technical and fundamental analysis to determine the best asset to trade. It’s not always the most popular currency pairs or stocks that provide the best setups. 

Being knowledgeable about a particular asset helps you increase your chance of entering a profitable trade. Consistently profitable traders usually stick to trading the same few assets.

Determine the Amount to Trade

Regardless of your expertise level, trading is risky. It’s especially risky when traders incorporate leverage. That strategy is more applicable to advanced traders, and new traders should consider entering positions with small amounts.

Whether beginner or seasoned, you should invest only the amount you’re comfortable with losing. A good rule of thumb for entering a trade is to believe that you’re never going to see that money again. Are you prepared to lose that amount and not have it affect your finances adversely?

Protect Your Trades

Most profitable traders aren’t greedy. They know when to lock in profits. Letting a trade run for too long because of greed can result in a reversal and losing all the unrealized profit made. Locking in partial profits in a favorable trade converts unrealized profits into realized. It also minimizes losses.

Traders protect their positions and avoid depleting their accounts by using stop losses. Although traders should give the market some room to maneuver, traders need to contain losing trades by putting in stop losses. The general rule with each trade is to risk only 1% of your total account. So traders need to incorporate that percentage when determining their stop loss positioning.

Frequently Asked Questions