Where to get money on Forex.
Most newbies dreaming of becoming a trader believe that the key to stock trading is finding
a certain amount of money, and the more it is, the faster the path to wealth.
This statement isn't far from the truth, which is why starting capital in Forex is one of the keys to successful trading. The larger the amount, the less risky the trading option you can use to generate profit.
Therefore, the question immediately arises: where to get money for Forex trading? And most importantly, how much is needed to make a significant profit.
In my personal opinion, the minimum capital for Forex trading is $5,000; this amount provides comfortable trading. However, scalping with $500 and yield equally high profits. However, the risk of losses increases accordingly.
There are many options for obtaining funds, but it's important to remember that you always have to give up other people's money, and Forex trading is high-risk, which can lead to the loss of your entire investment.
So, let's move on to an overview of the options for obtaining initial capital.
1. Personal funds . This is practically a no-brainer; your savings can always be used for Forex trading or investing.
2. Loans – you should only take them if you have another source of income (salary, scholarship, etc.) from which you will repay the loan. Only then is the risk truly justified, and you are guaranteed to be able to repay the money.
3. Loans – you can borrow money interest-free from friends and relatives, but it's still advisable to repay it from your primary source of income.
An interesting option is to repay the loan using profits from investing; the investment risk is minimized, so this scheme is definitely viable.
For example, you borrow $10,000 at 20% per annum for 3 years, and you need to repay about $500 per month. You
invest $5,000 in
PAMM accounts and receive the required $500 per month (this is the average return on investment), and use the remaining $5,000 for Forex trading. Currently, this is the most attractive option available if you don't have your own capital. The loan amount can be adjusted depending on your needs and capabilities.
