What Type of Trading Account Works Best For You

A trading account is an account opened with a broker that allows traders to engage with a wide range of offered assets. Traders can buy or sell instruments such as stocks, forex, cryptocurrency, or gold. It serves as your personal account for your day-to-day trading. 

There are a number of different factors to consider when you are choosing a trading account, such as your trading experience, trading volume, the features you desire and your own personal preferences.  

There are different trading account types that suit different types of investors. As with any investment, doing in-depth research always pays dividends before you begin trading. 

Here is an outline of the trading accounts available from Vantage which will help you decide which is the most suitable for your trading needs. These include the Standard, Raw and Pro trading accounts as well as the Demo account. 

Standard Trading Account 

Standard Account is an ideal choice for traders who want to pay no commission on each trade they place.  

Features include:  

• $50 Minimum Deposit 
• Trade Leverage – Up to 30:1 (on Margin Forex) 
• Minimum Trade Size of 0.01 lot 
• 1000+ Tradeable products 
• Spreads from 1.0 pip 
• Zero commission 
• Fast account opening 

Key Benefits 

A trader can take advantage of these features when opening this account by gaining access to: 

1. Ultra-competitive spreads, where there is a small difference between the bid and the ask price, reducing the overall spreads you incur. 
2. Greater market depth, where the market has a greater ability to sustain relatively large market orders without impacting the price. 
3. No commission fees enables you to trade without an extra fee eating into your potential profits and the amount to reinvest. 
4. High price transparency, and dark liquidity pool for higher liquidity. This is where there are a large number of orders to buy and sell in the market which increases the probability that the highest price a buyer is prepared to pay and the lowest price a seller is happy to accept will draw closer together. 

The special thing about trades executed through the Standard Account is that they are processed via the Equinix Fibre Optic Network, meaning they are executed at lightning speed. This means a potentially more accurate exchange on the prices of your trades. 

One of the most important advantages of CFD trading is that you have the ability to trade multiple markets in sizes that suit you and your trading position. Rather than invest in just one financial product, you have the ability to diversify your investments and make smaller trades. This can give you the chance to control a much bigger position with a smaller deposit while entering markets from the same platform.  

Having more than 1,000 tradeable products available gives you greater variety and diversification and you can start when you want because of the simple and speedy process of opening an account. 

RAW Trading Account 

A Raw Account is popular amongst traders because it can provide deep liquidity and extremely low spreads. As a Raw account holder, you get the opportunity to trade on top-tier quality liquidity. 

Features include: 

• $50 Minimum Deposit 
• Trade Leverage – Up to 30:1 (Margin Forex) 
• Minimum Trade Size of 0.01 lot 
• 1000+ Tradeable products 
• Spreads from 0.0 pip 
• Low commission from $1 per lot per side 

This account is particularly suitable for traders who want to make returns with the lowest spreads possible.  

Key Benefits 

The benefits of this account include: 

1. A low equity starting point, with just a $50 deposit required 
2. The offer of flexibility. With a 0.01 lot size on this account, you have the advantage of lower risk exposure and flexibility that allows you to tailor your position to your account balance, risk tolerance, and trading strategy. There is also the ability to trade with no spread mark-up and with a minimal commission. 
3. Industry-leading low commissions 

In the perfect financial world, each and every market participant would have infallible information and full price availability would be the norm. 

In the real world, prices are not fully available to all market participants. Some liquidity measures and real-time quotes are only available to traders for a fee. This is why markets with greater price availability are considered to be “freer”. 

The efficiency of financial markets has greatly improved through online trading accounts because investors and traders are given the capacity to make faster decisions and capture real-time prices.  

Vantage Professional Trader account 

Introducing our Pro account, exclusively available to wholesale clients. Unlock advanced features and premium benefits customised to meet the preferences of professional traders. All account holders of this type can take advantage of the highest execution speed available while also enjoying lower costs.  

Features include: 

• $50 Minimum Deposit 
• Trade Leverage – Up to 500:1 
• Minimum Trade Size of 0.01 lot 
• Generally greater execution speed 
• Exclusive Support 
• Spreads from 0.0 pip 
• Low commission of $1 per lot per side 

Key Benefits 

You can also benefit from diversifying your portfolio, take advantage of trading on multiple markets, and experience one-click trading while benefiting from comprehensive expert market analysis, TradingView charts, and real-time price alerts all within the same platform. 

Vantage thrives on working with the best providers in order to provide the best trading conditions for clients, eliminating unnecessarily high spreads or unexpected hidden costs. 

Demo Trading Account 

Opening a demo trading account can be a simple and informative way to begin your trading journey.  

With a Demo Account, you are able to test out your trading on Vantage without any financial risk as you’ll be trading virtual cash. 

Key Benefits 

A Demo Account can be an easy and effective way for beginners to learn how to trade the financial markets in a ‘real world scenario’ which can give you important insights into how you can navigate your future trading efforts. It is essentially taking your trading skills for a ‘test drive’ to see what suits your style of trading and see a more realistic view of your financial goals and trading capabilities.  

You are also able to test all the different features of the trading platform. You have the ability to test various strategies and even experienced traders can experiment with new strategies that could be precarious to attempt on a live account. And all of these advantages can be enjoyed without putting your actual money at risk. 

One of the downsides is that traders need to be prepared that a Demo Trading Account will give simulated results which can rarely correlate to actual trading results.  

When trading with virtual funds, traders are unlikely to experience the same level of stress, worry, or exhilaration that comes with using real money. It is this emotional detachment which can often lead to unrealistic expectations and poor risk management when making the move to live trading.

Trading with a Vantage account 

Let’s recap the differences between each of the Vantage accounts on offer today.  

One major difference is that the Vantage Pro Trader account is not available to retail clients and you will only be categorised as a wholesale client and be able to open the Pro Trader account if you meet the requirements of either the Individual Wealth Test or Sophisticated Investor Test.  

Standard 

The Standard account is ideal for beginner traders looking for trading with no commissions on each entry and exit trade. It has a different spread to the other accounts being from 1.0 pip. 

RAW  

This account offers traders razor-sharp spreads, low commissions starting from only $1.00 per lot per side, and deep liquidity. 

Vantage Pro Account  

The Vantage Pro account is designed for wholesale clients who trade with higher leverage. You also get dedicated account managers and special trading promotions and rewards such as the ability to earn up to $5,000 from the Vantage ‘Refer a friend’ program and access trading promotions.  

This is when you still might be asking, ‘What type of trading account should I open?’ 

It is important to do as much research as possible. Finding a reliable online broker is crucial to your foundation. 

Vantage is a global, multi-asset broker with more than 10 years experience. You can find specialist guides and expert information on the different trading opportunities and other educational tools to help you on your trading journey. It takes less than 5 minutes to open a live account.  

You can trade on either the MetaTrader 4, or MetaTrader 5 or download the Vantage App to begin your trading whenever you’re ready.