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Cent accounts are often recommended for testing strategies live with tiny risk. I used one for a few months and found that costs per pip behave differently than many people expect.

Basics: on a cent account, the balance is shown in cents. A "1 lot" on a cent account is often 1,000 units, i.e. a micro lot on a normal account.

The cost catch:

• Spreads on cent accounts are often wider than on raw accounts at the same broker. 1.2–1.8 pips on EURUSD in my case, compared with 0.1–0.3 on raw.
• No commission, but the wider spread is the cost.
• So the cost per trade in pips is much higher than on a raw account.

For a scalper with 5-pip targets, a 1.5-pip spread means 30% of the target goes to the spread. A strategy that works on a raw account might look like a loser on a cent account.

What a cent account is good for: testing EA execution, order handling, psychology with real money. What it's not good for: judging the profitability of a scalping strategy.

Has anyone found a broker where cent accounts have spreads close to raw? Or do you test live on a raw account with minimum lot size instead?