A number of retail forex traders increasingly believe that an excellent way to test out the services provided by an online forex broker involves opening a micro account with the broker. Such micro forex trading accounts can be an excellent opportunity for both new and experienced forex traders alike to get some real practice trading online via the chosen forex broker to see if everything meets acceptable standards.

While some newer traders might prefer to open demo accounts, especially since no money is involved, this lack of funds is exactly why micro accounts have become a preferred means of testing forex brokers for many more seasoned traders. Basically, you really want to know how a forex broker will react and treat you once it has some of your money and how difficult it will be to get it back when you entrust it to them.

The Initial Step of Opening an Account

The first step in trying out a new forex broker that you have already identified as a good prospect from your research about the company, generally involves setting up a small account with them.

Most reputable online forex brokers will permit you to open a so-called micro or mini account with smaller lot sizes and initial deposit requirements as a first step toward doing business with the company. Some brokers will do so with as little as $25 down, but expect most initial deposit requirements to be on the order of $100 to $500.

Once you have opened and funded a micro account, you are ready to move on to the next test phase.

The Key Forex Broker Testing Phase

At this point, you will want to systematically go through and test each of the services offered by the online forex broker that you think you might need to take advantage of in the future. Make sure to review the broker for legitimacy, to see that everything works as they have represented to you, and that their services meet the standards you require.

For example, this testing phase allows traders to test out the online forex broker for key forex broker service elements like the following:

• What the quality and responsiveness of the broker's customer service department is really like once you actually have money on deposit with them.
• How the broker executes forex deals and how tight their spreads are in practice.
• How well the broker manages real orders, especially with respect to slippage on stop loss orders in fast markets and the execution of take profit orders placed at levels that barely trade before a reversal occurs.
• How easy executing forex trades and generally using the trading platform(s) provided by the broker is.
• Whether the analytic capabilities and indicators offered by the broker are sufficiently sophisticated for your forex trading needs.
• What sort of proprietary market news and educational information is available and its quality.
• How easy sending and withdrawing money from your forex broker account is.
• Whether any fees are charged by the broker that you might not have been previously aware of.
• Whether the forex broker's account management capabilities are satisfactory.
• What the broker's rollover policy and pricing is.
• How the broker manages margin calls or automatic margin stops on losing positions.

Conclusion

Once you have determined whether or not your micro account's broker meets your standards, you can then upgrade the account to a standard or V.I.P. account or choose another promising broker.

Overall, no better alternative exists for checking out how a forex broker will really perform than giving them a small amount of your money that you can afford to lose as an initial test. Micro accounts provide forex traders with an excellent opportunity to try out a new forex broker.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.