Multi-asset broker ThinkMarkets has launched a new account specifically designed for traders from emerging markets.
ThinkMarketsā new mini account?
The new mini account, as it is known, lowers the barriers to entry to the financial markets for would-be traders in the developing world.
Through a combination of a minimun deposit requirement of just $10.00, and a trading universe of 50 of the most popular financial instruments, drawn from the FX, equity index, precious metal, energy and cryptocurrency markets.
Trading in the mini account will be commission free with clients just paying a bid offer spread each time they deal.
Whatās more the mini account will be available on both the MT4 and MT5 trading platforms, which have always been popular with traders in emerging markets. Both versions offer desktop and mobile trading apps.
Mini account holders will also be able to utilise Expert Advisers or EAs that are compatible with the platforms if they choose to automate their trading activities.
Dynamic Leverage
One interesting feature of the mini account is the use of dynamic leverage that will allow traders to scale their leverage or gearing to as high as 2000:1 based on the size of their open position in a given instrument.
So for example if a trader has a position of one lot or less, open in a Major FX pair or cross, they can utilise leverage of 2000:1. However, if they build a position of between 1 and 5 lots in that same pair then their leverage shrinks to 500:1 and will fall further, if they the grow their exposure beyond 100 lots.
Lot sizes in FX are standard, so thatās $100,000 notional In EURUSD for example, but the minimum trade size in the mini account is one one-hundredth of a lot.
Payment options
One possible drawback to the mini account is that it can only be denominated in US dollars, which traders from the emerging market may not always have in an electronic format.
However, ThinkMarkets does offer local payment solutions for example, Mpesa in Kenya, Mobile Money in Ghana and UPI funding in India, alongside more established names such as Skrill, Neteller and Apple Pay.
ThinkMarkets believes that the features in the mini account will appeal to would-be traders in emerging markets such as South Africa, where the firm has held a financial services provider licence since 2019.
The proof of that pudding will as always be in the eating.
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