Base 10 trading – the Smart alternative to Forex Mini’s

We have all read the advertised benefits of forex mini accounts that allow you to leverage your money up to 400-to-1 and open accounts with a very small opening balance. While this may seem advantageous to small investors, the companies touting minis do not explain the inherent risks associated with this type of trading account.

Taking a position with a smaller amount of capital does not automatically reduce your risk exposure. In fact, by reducing your trading capital and leveraging this money to the maximum, you are left with little or no funds to recover when the market goes against you, even if the market bounces back soon after. While this drawback significantly increases your chances of liquidation, it is rarely publicized.

With Base 10 Trading™, you deposit the same amount as a standard GFT account. While it may seem generous for a forex broker to allow you to open an account with very small deposit amounts, over-leveraging an under-capitalized account can be part of their business model. This strategy does not benefit the longevity of the trader, but is based on acquiring smaller accounts for purposes of quickly adding to the organization's bottom line.

The main benefit of Base 10 Trading™ is its flexibility. With most forex mini accounts, a standard lot size of 10,000 is your only option. Base 10 Trading™ not only offers you a 10,000-sized lot, but any lot size that utilizes a multiple of 10 - such as 10, 1,000, 15,010, ... 100,210, 110,030, 150,010, 225,050, 62,090 and so forth. Base 10 Trading™ offers you the freedom to choose the lot size you want to trade instead of imparting an "all or nothing" trading scenario.

Lowering your lot size gives you maximum control over your trading risk, access to better portfolio diversification and better overall staying power for your positions.