Mini Forex

Work on mini-forex means work with contracts less than 100 000$. Mini-forex offers an opportunity to receive the services equal to those that traders who work with several thousands/tens of thousands dollars deposits receive, but depositing only 100$.

When trading on mini-forex a trader just makes less than 1.0 lot deals. Till 2003 there was difference between mini-forex and forex in trading terms. Till 2003 3$ commission was charged for each transaction on mini-forex without reference to the transaction volume.

Forex is an interbank market with the minimal transaction size $1 mln. A logical question occurs – How transactions of $10,000 size, made on miniforex, get into the interbank market? Broker is clients’ counterparty for such transactions. If a broker has a lot of clients who trade on mini-forex he can transfer a joint client position to Forex. If a company works for a long time and has thousands/tens of thousands clients (both on Forex and mini-forex), then as a rule the joint client position is transferred to Forex and a broker isn’t interested in his clients to lose. Every client’s transaction (without reference to its financial result) brings 1-2 pips to broker. The more successful a client is, the more transactions he/she will make and the more profit a broker will take. So, work on mini-forex in large companies doesn’t differ from work on Forex.