As we've mentioned before, capital is the life blood of your trading account. The Forex account types you trade will affect how you first protect, and then grow that capital. A trader wishing to open a new account can generally choose between 3 types of Forex accounts: Standard, Mini, and Micro (Nano). These accounts differ in provided leverage, and, depending on the broker, different minimum deposits required to open that account.
Most frequently opened is a Standard Account. The capital requirement for a Standard Account generally starts around $5,000 and allows you to trade with a standard lot (worth $100,000); the related margin requirement is $1,000. At this size, one pip equals around $10 (for major currency pairs). Hence, if in one given day a trader gains 20 pips, it means he makes $10 x 20 pips = $200. However, if he losses 20 pips, it will cost him $200. It's important to note that just because you have a standard trading account doesn't mean that you are required to trade with one lot size, you always have the option to use lower lot sizes.
Usually preferable for a new trader, or a trader who just wants to test a new strategy, a Mini Account generally starts with capital requirements around $500. As you probably guessed, a Mini Account allows you to trade with a mini lot size. One mini lot is worth $10,000 with a margin requirement of $100. One pip in a mini lot is equivalent to $1, making the potential loss one-tenth of a Standard Account.
A Micro (Nano) Account reduces the potential loss even more; it is one-tenth of a Mini Account, though it is not offered by all brokers. For new traders not familiar with trading, a Micro Account or demo account would be a good option to start with. The capital requirements for a Micro Account can start from $25. One micro lot is worth $1,000. The margin requirement is $10, and one pip in a micro lot is around ten cents.
Both Micro and Mini accounts are a good option for new traders because of the reduced potential loss (compared to the Standard Account). At the Apiary Fund, all of our traders start on demo accounts of $10,000. This allows the trader to gain experience with no risk while we teach them how to trade. However, once a trader has passed our Beeline to Funding program, the Apiary Fund places them in a real, funded account to see what they can do. Learn more here.
One last note...
In Forex trading, capital is crucial; however, knowledge extends beyond capital. If the trader has skill and knowledge, they can compound a small capital account into a large one. But, if a trader only depends on the large capital he/she has, the money is going to the market in no time. Black Wednesday, 1992, when George Soros beat Bank of England is a solid proof that knowledge beats capital.