Starting capital for Forex

One of the most important aspects of working on Forex is the size of the starting capital; the amount of earnings and the degree of risk when trading directly depends on this factor.

Many novice traders ask the question - How much can you earn by trading currencies? The answer to this question directly depends on the size of your deposit and the leverage with which you are trading.

Forex starting capital is the amount of funds that you deposit as a trader's deposit for further use in trading on the currency exchange.

Some brokers have requirements for the minimum amount of starting capital (deposit); this indicator can range from 1 to 2000 US dollars.

First of all, it should be noted that at the moment you can start real trading with literally 1 dollar, but in this case you will also earn a few cents a day.

Therefore, it is advisable to use the maximum possible starting capital, which will allow you to trade with less leverage, thereby minimizing the risk of trading.

There are several ways to obtain it, as well as ways to use it, depending on the level of risk of the operations being performed.

Before you start trading, you should decide how much money you need to make normal money. Statistics on the work of professional traders will help with this, according to which the average earnings on the forex exchange are about 20% per month.

That is, having 1000 dollars in hand, you can earn 200. Based on this, we can say. that the recommended deposit amount for forex trading is from 3000 to 5000 dollars, with this money you can already feel comfortable on the foreign exchange exchange.

The use of large leverage helps to significantly increase the size of your profit; the majority of traders trade with a leverage of 1:50 or 1:100.

Increasing the amount of leverage will lead to an increase in transaction volumes, and therefore to an increase in profits. But we should not forget that such a step significantly increases the risk of trading and reduces the range of available time frames.

If you use a leverage of 1:500, then at best you will be able to open transactions lasting no more than a few hours, and even less if the market volatility is high.

But if there is no other option, this approach gives you a chance to earn decent money with only a couple of hundred dollars at your disposal.

All that remains is to find a place where you can get that very starting capital for Forex; there are several options for solving this problem.

Sources of start-up capital for Forex

Each option has its own strengths and weaknesses, the main thing is that the efficiency of use covers the price that you will need to pay to receive the money.

Own capital - everything is clear here, we have money, we deposit it and trade. But at the same time, we do not forget about such an interesting point as missed opportunities, for example, how much money we could have received if we had put the same money on deposit.

Cash loan - if you consider that currently you can get a loan for less than 7% per annum, then this option also has a right to exist.

You take out a $1,000 loan and try to ensure that your profits cover your monthly loan payments. This option should be used quite carefully, only if you are completely confident in your abilities.

No deposit bonuses are the easiest and safest way to receive initial capital for trading; if you lose your deposit, you do not bear any responsibility, and in case of successful trading, all the profit received remains at your disposal.

However, it should be noted that this option is more suitable for training than for earning money, since the bonus amounts rarely exceed several tens of dollars.

For example, the maximum no deposit bonus offered by the broker RoboForex is $30 for new clients.

Competitions on demo accounts - you can earn up to $1,000 without having a penny of your own funds, but here you will have to try, since there are a lot of people like you.

In conclusion, I would like to say that, as practice shows, the most important thing when trading on the stock exchange is not the size of the starting Forex capital, but your trading skills.

If you become a real professional, you will be able to manage other people’s money, and there will simply be no end to those who want to entrust it to you for trust management; some managers have at their disposal amounts amounting to hundreds of millions of dollars.

You can find out how you can become a manager and what you need for this from the article at - http://time-forex.com/pamm/pamm-upravlyushiy