Minimum and optimal amount for Forex trading
Thanks to the use of leverage, the minimum amount for trading on Forex is only a few tens of dollars, and even less on cent accounts.
It should be borne in mind that the less you invest, the higher the risk of the operations being carried out, since in order to obtain tangible profits you need to increase your leverage.
It’s another matter if you first want to learn how to work and make money on Forex, and then, using the knowledge gained, gradually increase the amount on deposit and the volume of transactions made.
And so, how much you can earn depending on your trading strategy and the initial deposit amount.
The minimum amount with which you should start trading is $10. Using the scalping strategy, even with such capital you can have from $5 to $20 per day, but you should keep in mind that trading with scalping is very difficult.
Only professional traders receive stable income when using scalping.
In addition, you will have to trade exclusively on a cent account, which only cent brokers . In this case, you can work in mini lots, and the minimum amount for trading is 1 dollar.
It should also be taken into account that mini accounts, as a rule, have less favorable trading conditions and a slower order execution speed, so it is not recommended to work with large amounts on them; it is better to open a standard account and take advantage of more favorable trading conditions.
If you are a novice trader, then cent trading can help you practice real trading skills and try out your own strategies, which is not always possible to do on demo accounts due to the lack of excitement and the risk of losing money.
And so let's sum it up:
The minimum amount to start trading on Forex is 1 dollar, although you are unlikely to earn anything with such a capital, and it is simply not convenient to train with such a minuscule amount.
Optimal deposit for trading
The optimal amount for trading is a deposit of $5,000 or more; in this case, you can conduct quiet trading on medium-term timeframes and not be chained to the trading terminal all the time.
Trading on standard accounts takes less time, transactions last from one hour to several days, the risk of losing your deposit is significantly reduced, and trading itself becomes more comfortable.
True, the relative amount of earnings decreases accordingly, which is in the range of 5-10% per month, and this is still a fairly high figure. Many professionals earn even less.
If you are a supporter of long-term investments, then a couple of thousand will not be enough; usually, this trading option uses minimal leverage, and deposit amounts amount to tens of thousands of dollars.
Another significant factor is the asset you will be trading; in the stock market, transactions require much more money than in the foreign exchange market.
The reason for this is the limitations on the size of leverage and the lack of micro lots, hence the higher requirements for the size of the deposit for trading.
To choose the best broker for trading on standard accounts, I recommend that you use the rating of dealing centers .
At the same time, professional traders do not work with deposits of less than several million dollars; in most cases this is investors’ money, but whose money is used for trading does not matter much.
It is clear that large turnovers require special conditions, which is why most professionals prefer to work on VIP accounts.