Forex VIP Accounts

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.

What are the features of a forex VIP account? We can discuss the features under the following headings:

a)    Capital requirements

b)    Contract sizes

c)     Bonuses and benefits

d)    Platform types

e)    Margin Requirements and leverage

 

Hot Forex VIP Account

Hot Forex VIP Account

1)    Capital Requirements

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 $10,000 on a dealing desk 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.

2) Contract Sizes

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.

3) Bonuses and Trader Benefits

VIP account holders are given VIP treatment when it comes to bonuses and benefits. Benefits given to such traders include 100% account bonuses, travel benefits, personalized attention from concierges and account officers, access to privileged forex products, and branded prepaid debit cards to enable instant withdrawal of profits.

4) Platform Types

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.

5) Margin and Leverage Requirements

The leverage requirement for traders with forex VIP accounts is low. Usually, such traders can get a leverage of up to 1:500. This enables the traders to get the required trade leverage for their position sizes to be worth the trade in the forex market.

Advantages and Disadvantages of Forex VIP Accounts

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.

Conclusion

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. 

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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