In general, there are 3 types of Forex accounts: Standard , Mini, and Micro (Nano) account. It classifies by the leverage provided thus will have an effect on minimum deposit
One lot Standard is worth $100,000. The margin requirement to trade one lot Standard is $1,000. In Standard account, one pip equals to $10. Hence, if in one given day a trader gains 20 pips, it means he makes $10 x 20 pips = $200. In contrary, if he losses 20 pips, it will cost him $200. The capital requirement for Standard Account starts from $5,000.
One lot Mini is worth $10,000. The margin requirement is $100. One pip in Mini is equivalent to $1. Capital requirement for Mini starts from $500. Mini account is usually the more preferable by a new trader or trader who wants to test new strategy, because the potential loss in Mini is one-tenth of Standard Account.
One lot Micro is worth $1,000. The margin requirement is $10. One pip in Micro is about 10c (ten cents). Generally, Micro is a good option new trader who is not familiar with trading, because its potential loss is only one-tenth of Mini account. Not all broker provide Micro (Nano) account. Capital requirement for Micro (Nano) account starts from $25.
Both, Micro and Mini account, are a good option for a new trader, as their potential loss is much smaller than Standard account. Trader must choose the suitable leverage to trade. Experience and sophisticated trader can go with Standard account, while for beginner it’s better go with Mini or Micro account.
In forex trading, capital is crucial, but knowledge is beyond capital. If the trader has skill and knowledge, trader can compound small capital into big one. But, if the trader only depend on large capital he / she has, the money is going to the market in no time. Remember Black Wednesday, 1992 when George Soros beat Bank of England. It is a solid proof that knowledge is beyond capital.