WHAT IS THE MINIMUM DEPOSIT FOR TRADING FOREX?

The issue of minimum deposit for trading forex is often discussed on the internet. But despite the popularity of the topic, newcomers can’t find a definite answer because of the often inaccurate or false information contained in the abundance of differing views.

Saqib Iqbal Author
3 min read
Published: February 03, 2018
Updated: December 10, 2022
Views: 161

Therefore, to determine the minimum amount of the deposit, you will have to look hard. Ultimately, this amount will depend on the professional level of the trader concerned. Therefore, it is necessary to divide all traders into amateurs and professionals.

The minimum deposit for amateurs

For all those who want to try trading Forex or haven’t got much experience, the priority should be the acquisition of the necessary knowledge and low-risk trading experience.

Don’t worry, there are many opportunities to start trading forex with as little as a dollar. Experienced professionals advise that newcomers first familiarize themselves with the trading platform MetaTrader4 before opening a real trading account.

This lets them discover what the platform offers and experience its nuances. They will also be able to see any shortcomings and assess the level of training offered.

The statistics could not be more clear – of every 1,000 traders who lose their deposit, 99% are beginners. You’re in good company if it happens to you but trying to make large sums trading straight away just isn’t worth the risk. Nothing dents your illusions about fast profits, like a few frustrating mistakes.

Don’t try to claw back a lost deposit all at once by making an even bigger deposit. Only when trading is bringing you stable profits over an extended period – months or even a year; certainly not just a week or two – should you think of increasing your deposit from the minimum.

As you make those small but steady profits, you begin to understand the rhythm and nuances of successful trading, develop your own trading strategy, and learn to manage capital and losses.

The minimum deposit for professionals

Good professional traders have learned how much they need to deposit. They trust their trading strategy and have an idea of how much profit they can expect over time.

But it’s important that they, too, have realistic earnings targets. Otherwise, even the most skilled trader can miscalculate and be among the losers. To better understand this, consider the following example: suppose a trader wants to earn about $2,000 a month.

If the average return is 100% per annum, the annual deposit must total $24,000. Therefore, the minimum trading deposit must similarly be equal to this sum, namely, $24,000.

But don’t discount the psychological factor. With a large sum on account, sometimes a trader can start to get nervous. It’s one thing to lose a $1 deposit but a very different thing when that deposit totals hundreds of thousands.

Coping with emotions only comes with experience and training, so all traders would be wise to raise their deposit level only gradually, carefully analyzing the situation and evaluating the possibilities.

If errors occur more often, or your selected trading strategy has a losing run, then it is necessary to reduce your momentum, return to a lower trading level, and risk a lower amount of money in your account.

USING THESE SIMPLE TIPS, YOU WILL BE ABLE TO DETERMINE YOUR MINIMUM DEPOSIT. DO NOT OVERLY FORCE THE ISSUE IN THE PURSUIT OF BETTER EARNINGS. START SMALL AND GROW TO BE A PROFESSIONAL!

Don’t forget to read our article about Forex Cent Account.