Minimum and optimal amounts for Forex trading
Thanks to the use of leverage, the minimum amount for trading on Forex is just a few tens of dollars, and even less on cent accounts.
It's important to remember that the less you invest, the higher the risk of your trades, as you'll need to increase your leverage to achieve significant profits.
It's a different matter if you want to first learn how to work and earn on Forex, and then, using the knowledge you gain, gradually increase the amount of your deposit and the volume of your transactions.
So, how much can you earn depending on your trading strategy and initial deposit amount?.
The minimum amount with which to start trading is $10. Using a scalping strategy, even with this capital, you can earn from $5 to $20 per day, but it should be taken into account that scalping trading is very difficult.
Only professional traders can achieve stable income using scalping.
Additionally, you'll need to trade exclusively on a cent account, which only cent brokers . In this case, you can trade with mini lots, and the minimum trading amount is $1.
It's also worth noting that mini accounts typically offer less favorable trading conditions and slower order execution speeds. Therefore, trading large amounts of money on them is not recommended. It's better to open a standard account and take advantage of the more favorable trading conditions.
If you're a beginner trader, cent trading can help you hone your real-world trading skills and test your own strategies, something that's not always possible on demo accounts due to the lack of excitement and the risk of losing money.
So let's sum it up:
The minimum amount to start trading on Forex is $1, but you're unlikely to make any money with that amount, and practicing with such a small amount is simply inconvenient.
Optimal deposit for trading
The optimal amount for trading is a deposit of $5,000 or more. In this case, you can conduct relaxed trading on medium-term timeframes and not be tied to the trading terminal constantly.
Standard accounts take less time to trade, with trades lasting from one hour to several days. The risk of losing your deposit is significantly reduced, and trading becomes more convenient.
True, the relative size of earnings also decreases accordingly, ranging from 5-10% per month, which is still quite high. Many professionals earn even less.
If you're a long-term investor, a couple thousand won't cut it. This type of trading typically uses minimal leverage, and deposits can amount to tens of thousands of dollars.
Another important factor is the asset you will be trading; the stock market requires much more money to complete transactions than the forex market.
This is due to leverage limitations and the lack of micro lots, which leads to higher deposit requirements for trading.
To choose the best broker for trading on standard accounts, I recommend you use the rating of dealing centers .
At the same time, professional traders generally don't work with deposits of less than several million dollars; in most cases, this is investor money, but whose money is used for trading is of little importance.
It's clear that large turnovers require special conditions, which is why most professionals prefer to work on VIP accounts.
