Maximum balance

Two basic models of trading generally exist in the Forex market: Market-Maker (“MM”) and ECN. There can be certain restrictions on the MM model such as maximum and minimum deposits, balance, leverage, transaction size, etc… The ECN model is perceived by Forex traders as more competitive because of fewer conditions.  

These parameters can vary depending on the type of account offered by different brokers.

For example, when comparing the maximum balance option available in MM and ECN, FXOpen’s Micro account (MM model) has a maximum balance of US$3,000. When it reaches US$3,000 or more, a restriction on leverage is triggered i.e., it is reduced by a weighting of x 100 e.g., from 1:500 to 1:5.

In ECN accounts, the maximum balance is unlimited. If your trading strategy allows, you may switch into large-volume trading with the potential for higher profits, although equally, you will not be protected from the potential for substantial losses.

Traders should choose the model best suited to their requirements with their own controls and risk management factored in.