To trade on the FOREX market, you need to open a deposit. Many brokers have minimum deposit requirements. Someone puts the bottom bar at 10 US dollars, and someone - at 10,000. The difference is significant, and it is not only in the amount. Minimum deposits have their limits.
The minimum deposit for trading on the FOREX market is $1. This attracts newcomers, because you can enter the market without risking large amounts of money. However, if you do not want to take risks, it is better to start with a demo account. It's completely free. Trading on such an account carries no risks. Good learning environment.
The most common minimum deposit is $100. Many brokers offer higher or lower minimum deposits for their clients. The minimum deposit varies from $1 to $10,000 or more.
When using an account with a minimum deposit, a trader may face a number of restrictions. Here are some of them:
When deciding to start with a minimum deposit, a trader should be prepared for the above features. In addition, you need to study the conditions of the broker. Depending on the deposit, for example, the account type may differ. You also need to take into account the peculiarities of the market. A small deposit can limit a trader's choice of assets or prevent portfolio diversification.
Trading with a minimum deposit can have several advantages. The most obvious thing is that by opening the minimum deposit and trading a little, you can assess the level of work of the broker, his integrity. Also, the minimum deposit is well suited for working out strategies or experiments.
However, trading with a minimum deposit on the FOREX market runs into a dilemma. The trader needs to choose between almost zero returns or using leverage. Trading without leverage and with a minimum deposit is possible. You need to understand that income will not be the main goal of such trading. Whether it's checking a broker or experimenting with strategy development, trading with a minimum deposit has its advantages.
Some brokers, such as XM Group, offer a minimum deposit in the range of up to $10. XM Group broker clients can open an account with a $5 deposit. The minimum deposit allows you to open an account of one of three types:
All three types of accounts offer approximately the same conditions for a trader. The size of the limit on lots per ticket, spreads and the availability of swaps differ. Note that the broker offers a 20% deposit bonus. However, for a minimum deposit of $5, this bonus is only $1. Also, this broker does not have commissions for replenishing and withdrawing money from the account. These commissions are paid by the broker.
There are many brokers available in the range up to and including $100. As mentioned earlier, this is the most popular minimum deposit amount. With an amount of 100 US dollars, you can open a deposit, for example, with the broker FxPro. The broker allows you to open an account in different currencies: USD, EUR, PLN, GBP, AUD, CHF, JPY, depending on the chosen payment method.
By opening an account with the FxPro broker, a trader gets the opportunity to trade more than 70 currency pairs, cryptocurrencies, as well as futures and shares of companies. Accounts with a minimum deposit do not differ from others in type.
If a trader is ready to open an account for more than $100, then he can use the services of IC Markets. It is the largest FOREX broker in the world. He has clients from over 200 countries around the world. To open an account, the trader set the minimum deposit amount at $200.
IC Markets Broker offers three account types, all with a $200 minimum deposit:
Account types differ by platform, server location, commission and spreads. You can open a demo account on all three types.
Rare brokers limit the minimum deposit to amounts greater than $1,000. One such broker is Saxo Bank. This brokerage platform is located in Denmark. It is a member of the Danish Bankers Association and is regulated by the Danish Financial Supervisory Authority.
The minimum deposit with Saxo Bank is 2,000 euros. In this case, the trader gets access to all the instruments and no more. When opening an account with a deposit of 200,000 euros or more, the broker also offers support in the trader's language. VIP traders with a deposit of more than a million euros receive additional support from the broker's experts. In general, the broker is distinguished by favorable conditions for the work of professional traders with a large deposit.
Now even a few dollars are enough to start trading on FOREX. However, the “standard” of 100 US dollars did not appear out of nowhere. Starting from this amount, the trader gets the opportunity to implement at least some strategies. If possible, it is better to start trading with a mark of several thousand US dollars. This amount will allow you to use different strategies and easily diversify your assets.