What do we mean by a forex VIP account? A forex VIP account is an account that was specially designed for the high rollers in forex; those who have loads of cash to burn and can afford to put in hundreds and even millions of dollars in a forex trading account. It is for this group of traders that the forex VIP accounts have been created, allowing them to enjoy great benefits by putting their big money to work on a trader’s platform.
Forex VIP accounts are for those who can be classified as Very Important Personalities in the forex market. A typical VIP account will start from $20,000 on a mt4 platform, extending to as much as $100,000 as minimum capital requirement on an ECN network. This makes it the account for the high rollers.
All vip client will get the lowest spreads available in the exchange which we categories as 100% ECN raw spreads with no commission and swap. The leverage for VIP is available upto 1:2000 to the account size upto $250k and will further reduce to 1:1000 at $500k account size and vice versa.
Forex brokers depend on the spreads generated from trades that traders execute on their platforms. So if a trader can afford to place trades worth millions on a platform, such a trader will be a prized asset to the broker. Therefore, VIP account holders are actually allowed to trade very large contract sizes, and they are not allowed to trade mini lots.
The very large capital that forex VIP accounts command means that they are qualified to be traded on ECN platforms. ECN platforms are very expensive to run and only traders whose trading activity can generate the commissions and liquidity on which the ECN platform thrives are allowed here. Forex VIP account holders can also trade on dealing desk platforms, with personalized access to telephone trading if need be. Forex VIP account holders are also allowed access to trade full contracts on special assets such as spot metals and energy products from their forex platforms.
Forex VIP accounts are advantageous in that they allow the trader endless opportunities to make a lot of money in the market. Unlike forex mini account holders who need to trade a lot in order to make tangible money, a carefully analyzed and well timed trade in the market can make the forex VIP account holder more money than a mini account holder can make in months. In addition, the opportunity to trade with transparent pricing on an ECN network is an advantage that is second to none. Without slippages or re-quotes, what the trader sees is what he gets, and this puts a stamp of certainty on the trades.
What are the disadvantages? It is actually very easy to get careless with risk management when trading a forex VIP account. The trader can easily get carried away and start making very large trades which can easily deplete the account if they go bad. Therefore the trader must take extra precautions when trading large positions. In addition, the forex VIP account is not a good way to start the market as a beginner as it is much easier for beginners to lose money, being green horns in the market without much experience to tackle varying market situations.
Forex VIP accounts are ideally for experienced traders who are knowledgeable about trading. These accounts should therefore be reserved for those who can handle it. Even if you have a lot of money to spare, it is best to start from the basic account types, and as experience is gained, ownership of a forex VIP account can be targeted.
If you want to inquire more about the VIP Account : Contact: [email protected]