How much money should I make for the first deposit for stock trading?
The first steps in stock trading always raise a huge number of questions, many of which are important for a novice trader.
One of these issues is the size of the first deposit that will be made to the account in your personal account.
After all, this, one might say, purely technical point concerns not only the size of potential profit, but also the very possibility of opening transactions.
Since there is a certain minimum amount of collateral that is required to open an order for a particular asset, and it should also be taken into account when planning to replenish your account.
What points should you consider when planning your first deposit?
Risk of losses - you should not start trading with a large deposit of several thousand dollars at once; the risk of losing money for a beginner is simply huge. There are practically no traders who have saved their first deposit.
Therefore, when replenishing, you should limit yourself to an amount of no more than a few hundred US dollars.
Broker restrictions - depending on the type of account, each broker has its own minimum deposit requirements:
Usually for cent accounts they are equal to $0, but on ECN or VIP accounts the minimum deposit amount can range from $300 to $10,000.
The replenishment amount and the amount on the trading account are also quite an interesting point; it is not at all necessary to use the entire replenishment amount in trading.
It would be more practical to top up your trader’s account with a larger amount than you intend to use in your work, and then transfer part of the money to a reserve account inside your account. This will give you the opportunity to instantly introduce money into trading if the need arises to increase the volume of transactions.
Minimum deposit - usually for trading on the exchange a deposit amount of at least 20-30 dollars is required, although the broker's specification states trading from 0 dollars:
Therefore, having deposited 10-15 dollars, you simply will not be able to physically open a transaction, receiving the message “Insufficient funds”. Also, the amount of collateral directly depends on the size of the leverage and the asset being traded.
In order to determine the optimal deposit amount for you, you should take into account all the above aspects.
On my own behalf, I would advise replenishing with an amount of $100, and using $50 for trading on a cent account.
If your broker does not have cent accounts or you do not want to work for them, then you will have to proceed from the amount required to open a transaction with a minimum volume. For example, the minimum volume is 0.01 lot or 1000 euros, leverage is 1:100, which means the first deposit must be at least 100-150 dollars.