Micro currency trading mean you are trading with 1000 units per lot. Our team of experts look at the best forex brokers that offer micro forex lots and their forex trading platforms to fx traders.
Our best micro currency trading platforms and brokers list in April 2021 is
Pepperstone is a multi-regulated Australian broker. Clients all over the world can trade with Pepperstone as it’s licensed and regulated by ASIC (Australia), FCA (UK), CySEC (Europe), Bafin (Germany and Austria), the DFSA (Dubai Financial Services Authority) and the SCB (Securities Commission of the Bahamas).
The broker offers two trading accounts with different spread and fee structures.
Regardless of which account you use, you can trade micro-lots (0.01 standard lots) and above.
Pepperstone’s full range of 60+ forex pairs can be traded as micro-lots via MetaTrader 4 (MT4), MetaTrader 5 (MT5) or cTrader. As MT4 is a forex trading platform with advanced trading tools, it is ideal for micro trading and risk management.
Pepperstone offers some of the best spreads through its Razor Account of all brokers. The below calculator calculates your spread costs plus commission when you open a trade.
MetaTrader 4 (MT4) is one of the most popular platforms designed for retail investor accounts. Although predominately a forex trading platform, Pepperstone clients can also access other financial markets on MT4 like cryptocurrencies, commodities and indices.
You can use multiple devices to conduct technical analysis and place orders. As well as the online trading platform (webtrader), desktop platforms are available for Windows and Mac computers plus mobile apps for both iOS and Android devices.
While trading smaller lot sizes help minimise potential losses, there are plenty of additional MT4 trading tools that can supplement micro trading strategies.
As well as the standard MT4 trading tools, the broker offers premium add-ons free of charge. Pepperstone’s Smart Trader Tools provides 28 extra technical indicators and Expert Advisors that can help manage risk and maximise gains.
If you want to start trading right away, you can easily sign up to a Pepperstone account online. No initial minimum deposit is required to open an account, but the broker does recommend at least $200.
Depositing and withdrawing money from your trading account is easy with a good range of funding methods:
Depending on the subsidiary you open an account with, you can choose one of 10 base currencies.
If you are unsure whether Pepperstone and MT4 suit your trading needs you can sign up to a free demo account. You are provided with a virtual account balance, meaning you can practise trading micro-lots in real-time market conditions before using real money.
Pepperstone is considered one of the best MT4 brokers as it offers tight spreads while charging low commission fees. To develop micro trading strategies, you are able to use a sophisticated range of inbuilt and add-on tools.
Note: Pepperstone UK does not offer cryptocurrency as required by FCA regulations.
View Pepperstone Review >>Visit Pepperstone >>
With low commission-free spreads, no initial minimum deposit requirements and smaller lot sizes, City Index is one of the best brokers for micro trading. As well as competitive pricing you can utilise different analysis and risk management tools on all City Index trading platforms, both proprietary (web trader and mobile apps) and third-party trading platforms (MetaTrader 4 and AT Pro).
City Index spreads are very competitive when compared to other brokers offering online trading. Other than the GBP/USD and EUR/GBP where Pepperstone offers some of the best spreads, City Index consistently offers some of the tightest spreads across the board. For major currency pairs like the EUR/USD and USD/JPY, City Index customers can trade with average spreads of 0.80 pips commission-free. The broker offers over 65 different major, minor and exotic currency pairs with minimum spreads starting from 0.50 pips.
Data taken from broker website. Accurate as at 02/04/2021
Micro, mini and standard lot sizes are the most commonly traded contract sizes by retail investor accounts. City Index offers flexible contract sizes with micro, mini and standard lots available for most major and minor forex pairs. When trading certain exotic fx pairs you are restricted to micro-lots.
Regardless of your trading experience, micro accounts can be a great approach to managing the high risk that comes with forex. The key benefits to micro trading include:
If you are a beginner forex trader just starting out, trading smaller lot sizes is a great way to reduce the costs and risks. While experienced traders can use micro accounts to test sophisticated trading strategies against real-time market conditions before using larger lot sizes.
The broker offers a range of trading platforms to choose from:
Each platform provides a good selection of trading tools that can be used to develop trading strategies and stay on top of market changes, such as:
The broker offers three main retail investor accounts suited to different levels of trading experience and volume. Micro, mini and standard contract sizes are available for the following:
As forex and CFDs are complex instruments that carry a high level of risk, it’s important to sign up to a trusted online broker. City Index is well respected as it is regulated by multiple tier-one financial authorities.
City Index takes the top spot thanks to tier-1 regulation, thousands of financial instruments, competitive pricing and flexible lot sizes. Each level of trading experience is covered. Novice traders can sign up to a Standard Account and start out using the broker’s user-friendly web trader platform. Experienced and active traders, on the other hand, may prefer to make a larger initial deposit to qualify as a VIP, while using a more advanced trading platform such as MetaTrader 4 or AT Pro.
Plus500 is well-suited to forex traders wanting strong risk management features and a simple pricing structure. Features such as flexible contract sizes, premium order types and top-tier regulation make Plus500 a great option for micro trading and risk management.
When trading with Plus500, Plus500 do not use ‘lots’ as part of their terminology. Instead, Plus500 call them ‘Unit Amounts’. Where $€£ = 1. So$€£ 1000 units will be the minimum amount for currency pairs. This is equal to one micro-lot.
As a market maker broker, Plus500 only offers no commission spreads with no ECN-style account type available. The combination of commission-free trading and various risk management tools, beginners can ease themselves into CFD trading by trading micro-lots of a range of asset classes such as:
When micro trading with Plus500 you can place both basic and premium order types to manage the high risk of forex and CFDs:
As well as using risk management tools, signing up with a trusted and highly regulated broker helps reduce the high risk of trading. Established in 2008, Plus500 is listed on the London Stock Exchange and overseen by an array of top-tier financial authorities. Each location provides different levels of investor protection, yet one common policy is segregating client funds from operational capital.
The investor protection you are provided as a retail forex trader varies between Plus500 subsidiaries. Likewise, maximum leverage limits differ depending on the broker’s local financial regulation. You can sign up to one of the following Plus500 entities:
Ideal for beginner traders with little experience, Plus500 offers great risk management tools to minimise potential losses when forex trading. Both micro-lots and premium order types are offered by the broker, allowing you to trade more preciously than with standard lots and order types.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
eToro is one of the most popular brokers for social-copy trading. Millions of users from 140+ countries copy trade with eToro, meaning you gain access to one of the largest forex communities currently available.
Compared to manual trading that requires skill and time, social-copy trading is great for beginners as you don’t need to perform complex technical analysis when first starting out. Instead, you can simply copy the trading strategies of experienced investors.
As well as social-copy trading, eToro offers the following features and benefits:
eToro is one of the most popular social trading brokers. You gain access to a large forex and CFD trading community where you can execute your own analysis and orders or simply copy the strategies of more experienced traders.
If you prefer to use MetaTrader to trade, IC Markets is a great option with both ECN-style (Raw Spread) and no-commission (Standard) accounts.
Both Raw and Standard account types require a minimum deposit of $200 and permit micro lot trading.
The IC Markets RAW Spread account offers some of the most consistent spreads across all currency pairs as shown in the module below which takes the average spreads from brokers websites. This is updated monthly. IC Markets
Compare All Spreads
As MT5 is a multi-asset platform, IC Markets offers a great range of financial instruments on the platform:
IC Markets MT5 servers in New York (Equinix NY4 Data Centre) ensure ultra-fast execution and minimal slippage. With tight spreads, quick execution speeds and a diverse selection of financial instruments, IC Markets and MT5 are a great option for micro traders.
XTB is a top CFD broker offering access to over 1,500 different forex, index, commodity, crypto, ETFs and share CFD markets.
For more controlled and precise CFD trading, XTB allows you to place trades as small as 0.1 lots. Micro trading is permitted on both XTB’s proprietary trading platform, xStation, as well as MetaTrader 4.
XTB’s xStation software is available as a web trader platform and mobile trading apps for Android and iOS devices. The easy-to-use interface provides useful features including client sentiment data, an economic calendar and full market access.
XTB is one of the best options for trading CFDs. With this broker you can choose from the following range:
All CFD assets are available in 0.01 lots (micro-lots) except cryptocurrencies. Bitcoin starts at 0.1 lots, but others vary.
Note: XTB UK does not offer Crypto product due to regulatory requirements of the FCA.
When trading with XTB you can develop trading strategies based around the brokers 1,500 different financial instruments. Two trading platforms are available – MT4 and xStation, with both providing advanced technical and fundamental analysis tools.
XTB Review >>Visit XTB >>
FXTM is a global broker that is regulated by tier-1 financial authorities, including South Africa’s FSCA and the UK’s FCA. Unlike many other top brokers, FXTM offers a Cent Account, specifically designed for micro trading on MetaTrader 4.
Key features of FXTM’s Cent Account include:
It is easy to open a Cent Account as a very low minimum deposit of $10 USD is required. For a $10 deposit made, your trading account balance will reflect 1000 cents.
The broker’s Cent Account was purely designed for micro trading, although mini and standard lots can also be traded. A very low minimum deposit of $10 is required to open an account, meaning it’s accessible to beginners not able to make large initial capital outlays.
View FXTM Review >>Visit FXTM>>
FxPro is a popular broker if cTrader is your platform of choice. As well as the ability to trade lot sizes as small as 0.01 (micro lots) you will gain access to competitive floating spreads and excellent trading tools.
When setting up your FxPro cTrader account, you will need to deposit at least $100 USD. Each trade you’ll pay a flat rate commission fee that varies between forex pair and your accounts base currency. To help you calculate commission costs as you trade, the broker offers a calculator online where you can determine your trading costs.
FxPro is a popular broker favoured my many cTrader users. Predominately a forex trading platform, cTrader provides an excellent range of trading tools to help you develop sophisticated strategies. Automation can be achieved using cBots, while risk can be managed with different pending order types.
View FxPro Review >>Visit FxPro >>
HotForex offers a Micro Account designed for beginner traders wanting to trade smaller volumes. To open a Micro Account an initial deposit of $5 is needed, with the small capital outlay making it accessible to many new traders.
While the broker’s other account types provide leverage up to 500:1, Micro Account holders can access much higher maximum leverage of 1000:1.
HotForex is regulated by 6 different financial authorities around the globe, and depending on the subsidiary you sign up with, you may not be able to sign up to a micro trading account and access 1000:1 leverage.
HotForex’s European branch does not offer Micro Accounts. With the aim of reducing risk for traders, financial regulators in certain jurisdictions enforce leverage caps. For instance, CySEC in Cyprus and the FCA in the UK restrict leverage to a maximum of 30:1. Similarly, in accordance with the UAE’s financial regulation, HotForex’s Dubai (DFSA regulated) branch cannot offer micro accounts or leverage over 50:1.
Registering with the brokers Seychelles-based subsidiary will allow you to use 1000:1 leverage. Yet, trading with extremely high leverage carries a high risk of losing money. Although you are trading smaller lots which helps limit your losses, it is best to incorporate strong risk management tools (i.e. order types) when trading with such high leverage.
HotForex offers double the maximum leverage than most forex brokers. Although such high leverage can dramatically enhance your profits, you are taking on significantly higher risk. Please note, the broker’s maximum leverage limits vary between financial jurisdictions.
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Oanda goes one step further than micro trading, offering nano trading on their proprietary trading platforms. While a micro lot equates to 1,000 currency units, with Oanda there are no restrictions on position sizes and you can trade as little as 1 unit of currency.
Nano lot trading is a great option for beginners, as it means you won’t take on excess risk when you are still learning the ropes. As you build confidence, you can start trading larger volumes, for instance, 100,000 nano lots.
Although Oanda offers MetaTrader 4 as well, nano trading is only accessible on the broker’s proprietary platform. The software is available as mobile apps for Android and iOS devices, as well as a webtrader and desktop trading platform.
All versions of the platform offer different features to help you develop trading strategies, providing both technical and fundamental analysis tools. No minimum deposit is required to open a trading account with Oanda.
Oanda is unique in the sense that it enforces no restrictions on minimum trade sizes, with clients able to place orders as small as 1 unit. To trade small lot sizes like nano lots, you will need to use the broker’s proprietary trading platform.
View Oanda Review >>Visit Oanda >>
Traders generally trade purchase and sell forex in lots. A ‘lot’ refers to the quantity of an order to open or close a trade. There are 4 types of lots and these represent a defined number of units.
Micro-lots refers to the trading of 1000 units. Most forex brokers permit trading with a minimum 1 micro lot. See our best brokers for forex trading. All these brokers allow trading with micro lots.
While nano-lots are the smallest available lots for trade, not many brokers offer these. Mirco-lot is the smallest commonly available lots for trade which makes it a good strategy to reduce risk if you are new to trading or lack trading exerperience when trading while investing real cash. While Micro lot trading won’t lead to the high returns trading with mini or standards lots will, the lower levels of cash means losses are greatly reduced when movements are unfavourable.
If you are are wanting a micro lot account because you are not ready to risk your own cash, using a demo account may be a better strategy. With these account, you can use virtual currency meaning you will not lose actual capital on bad trades.
A lot size is expressed in units. A standard lot is 100,000 units, this is sometimes simply called 1 lot. So 0.1 lots is 10,000 units which is 0.1 of 100,000 units and sometimes also called mini-lots. 0.01 is a micro-lot or 1000 units or 0.01 of 100,000 units.
Just about all brokers offer standard lots as the default when trading however most will offer min-lot and micro-lot trading options. Less common options for trading are nano-lots or non-lot (i.e trading in volumes rather than lots) trading.
Brokers that offer micro-lot trading include:
Certain brokers offer flexible lot sizes to help forex traders manage risk. While the smallest trading volume offered by most top brokers is micro-lots, nano lots are also available to trade with brokers like Oanda. The four most commonly traded contract sizes are:
All levels of trading experience can benefit from trading smaller lot sizes. If you are experienced trading forex, trading micro-lots enables you to incorporate a more diverse range of financial instruments into your strategies by placing smaller trades across a wider collection of forex pairs.
If you are new to forex trading, micro trading is a good approach to risk management as you don’t need to make a large initial deposit to start trading and you aren’t risking large losses. Additionally, both beginner traders and seasoned pros can use micro lots to test trading strategies against real-time market conditions.
City Index is one of the best brokers for anyone wanting to trade micro-lots, with a great range of account types and trading platforms available. User-friendly trading platforms provide a soft-entry into forex trading, while VIP traders are rewarded with cash rebates. Most importantly, the brokers no commission forex spreads are ultra-tight, averaging 0.80 pips for the EUR/USD.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.