Forex mini is a type of forex account where the minimum position size is very low, sometimes as low as $1000.  At the usual 100x margin, this means that a deposit of only $10 is required to open a position.  Forex mini trading allows to learn forex with real money, but with minimum risk. These accounts are offered by many reputable brokers.

Forex mini trading is halfway between demo trading and real online forex trading.  Like demo accounts, most mini forex accounts have orders executed automatically by a computer which is way more forgiving than a human dealer executing real market orders.  Unlike a demo account, you have money at stake, which greatly enhances the trading psychology aspect of learning.  Also, forex mini trading makes it possible to practice money management techniques without risking too much capital.  

Because of automatic order execution, forex mini is mostly suitable for learning position trading and swing trading, where precise order execution is not so important.  If you develop a strategy of this type using mini forex, it usually can be applied in real market with minor modifications.  On the contrary, any type of scalping and day trading strategies that rely on immediate order execution to skim a pip here and there may work in forex mini, but are all but guaranteed to fail in real life.  The primary reasons are delays (the computer always executes promptly, while a dealer is often flooded with orders when the market moves fast) and slippage (the computer always executes at last quoted price, while such price may be simply unavailable in real market).  Spreads can be less favorable in real accounts as well.

One of the greatest features of a mini forex account is the ease of practical application of proper money management techniques.  It is our considered opinion that money and risk management are far more important than the trading strategy itself.  Indeed, it has been shown that random buy/sell decisions in combination with simple money management and position tracking strategies yield better results that any pure trading strategy.  Thus, unless you are willing to commit tens of thousands of dollars, your cash is a lot safer in a mini account.  There simply isn’t enough room for error to wipe it out with one unsuccessful trade. 

Now, why would anyone bother to open a real forex account if mini is obviously so much better?  Well, brokers know that, too, so they put a cap on the maximum amount of money in the mini account, or on the number of positions, or on position size, or maybe on all of the above.  You can make an astounding 1000% profit in forex mini trading, but it will still be only a measly $100 in absolute terms.  You’ll have to move out to the real world if you are to make any real money.  Experience with a mini account is just a great way to do that prepared.