How much can you start trading on Forex?
Novice investors are primarily interested in how much to start trading on Forex. And here it is important to immediately clarify one misconception, the essence of which is that the lower the amount of the broker's minimum deposit, the better. Many “dug” the Internet in search of a broker offering to start with $ 10 or $ 5, and sometimes even with one, and are very happy when they find him.
In fact, there is nothing good about a low threshold for entering the market, since Forex trading is carried out in standard lots of 100 thousand dollars, which means that with a deposit of $ 5-10, even an order of 0.01 lot will have to be opened with significant leverage. … This does not leave the trader the slightest margin for error, if the price moves even a little against his position, Margin Call and Stop Out can follow almost instantly.
The more money is on the deposit, the less the risk, so everyone who takes their first steps in the financial markets should not start with $ 5, unless, of course, we are talking about cent accounts, where $ 5-10 corresponds to $ 500-1000 on an ordinary one …
How much can you start trading on Forex?
Experienced traders advise not to trust too much the stories about how to start trading on Forex from scratch, but to open an account for $ 500 and more. For example, having $ 3000 and risking no more than 2% of the account amount on each trade, you can already earn about $ 60 + per day.
With deposits of $ 250-500, if you risk no more than 1% on each transaction, on average, you can earn $ 5-10 per day. At this rate, within a year, you can increase your income to several thousand dollars and start working in earnest.
As you can see from these examples, it will not work at all to start trading on Forex without investments, but even with minimal costs, you can make more or less good money.
The standard for Forex is the minimum deposit of $ 200-500.
Most of the trusted brokers like FxPro ($ 500), Alpari ($ 300) – put forward just such conditions for the size of the minimum deposit.
How much you can start trading on Forex depends largely on the instrument with which the trader will work.
For standard currency pairs like EUR / USD, USD / JPY, USD / CHF with low or medium volatility (amplitude of price movement) $ 100-300 will be quite enough, but highly volatile ones, like USD / ZAR, USD / NOK, USD / RUB, USD / MXN, etc. require at least $ 500, and better $ 1000.
How to choose a Forex broker
Well, we decided on the required amount and found it, but how to start trading on the Forex market, which site should you go to, and what to do? To enter the market directly, receive quotes, and start trading, you will need:
- Find a broker;
- Register with him;
- Open an account;
- Make a deposit;
- Download the trading terminal;
- Select asset (s), analyze, open a position and make a profit.
And now in order. The choice of a broker is a subjective matter, Forex brokers, but there are a number of general rules on how to start trading Forex, which it is advisable to follow. First, the broker must not be the first one to come across.
What to look at when choosing:
How many years has been working in the service market? The longer, the better, it is desirable that the period is not less than 5 years, since obvious fraudsters will not be able to hold out so much, and if the company has serious problems, then during such a time they will certainly manifest themselves. For example, the broker Alpari has been operating for over 20 years.
Regulation. The presence of a license from serious regulatory authorities indicates that the company is responsible for the quality of its services and is focused on long-term work. If a broker is regulated only by CySEC (Cyprus Securities Commission) or other similar offshore organizations, then the trust in him is much lower than in those who are regulated by CIF, FCA, MiFID, CRFIN.
If you want to quickly find out how to start trading on forex, and you are too lazy to waste time looking for a broker, then we can immediately offer several time-tested companies:
Alpari – Has been operating for over 20 years, regulated by IFSC, NAU.
FxPro – More than 15 years in operation, regulated by FCA, CySEC, DFSA.
When the broker is selected, it remains to register by clicking the appropriate button on the website or an item in the menu. The registration process may differ slightly from broker to broker, but in general, everything is similar: you will either have to immediately enter all the basic information about yourself or first only your name and e-mail or phone number, to which a link will be sent to confirm and continue the process.
It will be necessary to indicate:
- Real name, as in the passport (either in Russian or in English, usually it is indicated there);
- Real name;
- Date of birth;
- Country of permanent residence;
- The address;
- Mobile phone.
Also, before you start trading on Forex, you will have to confirm your consent to the processing and storage of data, as well as accept an agreement on the provision of services, which will spell out the responsibilities of both parties. The password is either invented by the user himself, or it is generated automatically and sent to the specified e-mail or SMS to the mobile, then, if desired, it can be changed in the personal account.
In addition to entering data during registration, you need to verify your account (confirm the accuracy of the entered data) – just send a scan of the main page of your passport or other official document confirming your identity and a scan of the registration page.