How much capital to start trading forex?

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USGforex

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Because we are not all equal at this point. It is clear that having a large portfolio is significant support for a trader: increased confidence and greater security. Some have much, others have little. Here are the possible strategies according to the size of your trading account:

USD0
In other words: NOTHING! You do not have a budget trading.
Free forex contests can be a solution to build up a nest egg to start.
Some brokers offer unlimited demo accounts. You can refine it at their leisure while waiting to acquire a bankroll.

USD100
It is usually the minimum amount of deposits. You can start day trading forex for as little as $100, but that amount will limit your returns.

USD500-USD1,000
Starting with $500 or $1,000 is usually recommended as these two amounts can at least give you better account growth and the flexibility that a $100 deposit won’t give.

USD1,000-5,000
Much of the speculators have such a sum in their trading account. It is possible to make good profits without taking excessive risks.
The day trading and swing trading are favored by traders in this category.
Automatic trading with Expert Advisor gets really interesting.

Above USD5,000
Starting with $5,000 will give you even more flexibility compared to starting with $1,000. With the 1:2 risk/reward ratio, 100 trades a month, and a 50% win ratio, you could, in theory, make $5,000 a month before fees and commissions

Considering all of the above, a good starting budget for day-trading is $1000, although $500 will do. Never deposit what you cannot afford to lose (and replace) – it’s unlikely you’ll hit on a winning strategy immediately. This starting balance should be increased to at least $2500 if you want to swing-trade instead of day-trade.
 

fxoday

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Yes, each trader has their own rich level of initial capital, because forex is for all levels of society no matter graduate from high school or middle school they can take part in forex trading, for poor traders they can take part in a free contest like demo contest or forum member active contest or guess price contest. if get a winner hence gets a prize for starting a real trading account.

Traders that have a low-budget trading contest with less than $100 micro account are lower risky type account because the value per pip is lower than the standard account.
 

holycow

Master Sergeant
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Only start with small amount and grow it into a handsome volume with the passage of time in my opinion. We can also test the broker processes like withdrawal etc by depositing small amount with them.
 

FOREX.com

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Initial deposits are naturally based on your preferences. However, there is always a recommended deposit which differs widely within the Forex trading industry. You made great points in saying that a smaller deposit will not give you the flexibility that a larger deposit would give you. That being said, if newer traders are not ready for a larger deposit then they can open demo accounts. If you have this opportunity, its a good idea to change that deposit amount to something close to what you see yourself depositing when opening a live account. Based on this amount, you would be able to see how the account would perform if this deposit were real.
 

HeavenLeighRob

Master Sergeant
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I think it's better to invest more money or at least $100 starting off, if you can. In some cases it's ok to start smaller, however, especially if you're just a beginner and are hesitant to deposit anything at all. Brokers like Oanda or CedarFX (and many others) will let people start with $10 or even less, so that can sometimes be a good option. Obviously the trader would need to deposit more to keep trading, but it could be a start as well.
 

fxoday

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There are so many recommendations to start with an amount of certain capital, however, all decisions back to each trader's preferences, the most important thing, remember the golden rules investing money in high-risk business with spent money that afford to lose, this is early prevention to avoid suicide because fail and get bankruptcy.
 

ForexTus

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164
I think it's better to invest more money or at least $100 starting off, if you can. In some cases it's ok to start smaller, however, especially if you're just a beginner and are hesitant to deposit anything at all. Brokers like Oanda or CedarFX (and many others) will let people start with $10 or even less, so that can sometimes be a good option. Obviously the trader would need to deposit more to keep trading, but it could be a start as well.

I definitely agree you need more especially if the person is a beginner. It is key to make sure you have the risk tolerance and don't need the money and if putting 100 in suggests that there isn't a lot of money to back it up
 

RahmanSL

Major
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The Special Consultant to the FPA, Andrew Mitchem, gave an interesting idea for traders who do not have much money to trade. I forgot his exact wordings, but basically, if you are a good trader and make consistent profits, join/sign-up "copy trade" in various sites for other traders and investors to see your trading account performance. It does not need to be a big trading account and even be a "cents" trading account. If other traders and investors are impressed with your trading skill, they will "copy trade" your trading account and you get commissions from them for following you. If a large investors follow your trades, your commissions can be quite significant and, of course, if you get a large followings, you will receive a lot of commissions which, collectively, can be substantial too. Consistency in profits is the key here.

To the question on how much capital to start trading, that depends on what you can afford to invest, and what you expect in return for your investment. That's right, always treat your trading capital as an investment like you would for your fixed deposit in banks and other institutions. In a lot of countries, due to the rate of exchange rate of the US$ to their local currency, even a daily US$30-50 is considered good returns as that gives them an acceptable monthly income commensurate with their average local salary scale. In that scenario, I would think a US$2000-5000 trading account would be sufficient & safe to trade to make daily US$50-200 profits. Discipline and patience are essential to your success and GREED to take on risks to make more money will be your account killer.
 
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