Little investment means little risk. Starting with $200-$500 would be a good option. If there would be a loss in this stage it won’t matter to you much. As the time passes, practice more and invest more depending upon your situation. You may also check the minimum deposit by your broker
Minimum investment
- Thread starter bullandbear
- Start date
veronica23andrews
Recruit
- Messages
- 7
If you are a beginner, you should go for less investment and try trading in smaller lot sizes so that you can understand the working. Once you are experienced, you can invest higher amounts.
FxProTrader
Private, 1st Class
- Messages
- 57
As those traders who are newbie in the business of Forex trading must understand this fact that trading here is not an easy task and requires a lot of time and efforts.
Damselarren
Recruit
- Messages
- 3
It’s better to start off with less money depending on your income. Risking a large amount of capital is not recommended since there can be huge losses. Try your strategies, understand forex trading deeply, practice more, and then grow your account slowly and steadily by putting larger capital. You can invest 10% of your income and see how things work in the beginning.
I
Irrelevant
Guest
Contrary to popular belief, starting with $500-$1000 is a sure way of losing your money and thus very risky.
If you want to get into trading, the more capital you have the less risk you take.
90% of people that muck around with forex lose there money and most of them started with small amounts that you been recommended.
The reality is, unless you open a forex account with a minimum of $10,000 you are just stuffing around and inevitably going to blow your account (meaning lose what you got).
In forex if you want to trade minimal risk then you want to trade with little risk.
If you have no capital in there as a buffer (margin) then you cant place stop losses etc in ideal places because you have no capital to allow the market to move as it does.
With $10,000 you can still trade 0.01 micro lot which is the same as trading 0.01 micro lot when you have $500 from a per pip value. However the margin requirement you have before being stopped out by the broker and occurring losses.... and then coming onto this forum and saying how the broker stop hunted you, closed your position and they scammed you and all the other non sensical stuff that happens by ignorant people who have no clue how market works... is significantly smaller margin with $500.
In short:
1: trading 0.01 micro lot with $10,000 or $500 in account, per pip value is same risk. its 10c per pip regardless of how much capital you have.
2: With only $500 you are going to have far less margin requirement which means more times than not you will be stopped out of your trade for a loss. Then you will get frustrated and say how broker scammed you on this forum when in reality you scammed yourself by not having the capital to increase your margin so that the market has a chance to move without stopping you out.
So more capital = less risk.
And lastly, do not forget you can always withdraw your money from broker if you feel this is not for you. So starting with $10,000 does not mean you risk $10,000. What it means is you protecting your trades being stopped out incurring you losses. Its actually a safety measure for you. If you find after some minimal trades this is not for you, withdraw your capital.
Capital is protection, not risk. You put no capital in, then you risk because you have no protection.
If you want to get into trading, the more capital you have the less risk you take.
90% of people that muck around with forex lose there money and most of them started with small amounts that you been recommended.
The reality is, unless you open a forex account with a minimum of $10,000 you are just stuffing around and inevitably going to blow your account (meaning lose what you got).
In forex if you want to trade minimal risk then you want to trade with little risk.
If you have no capital in there as a buffer (margin) then you cant place stop losses etc in ideal places because you have no capital to allow the market to move as it does.
With $10,000 you can still trade 0.01 micro lot which is the same as trading 0.01 micro lot when you have $500 from a per pip value. However the margin requirement you have before being stopped out by the broker and occurring losses.... and then coming onto this forum and saying how the broker stop hunted you, closed your position and they scammed you and all the other non sensical stuff that happens by ignorant people who have no clue how market works... is significantly smaller margin with $500.
In short:
1: trading 0.01 micro lot with $10,000 or $500 in account, per pip value is same risk. its 10c per pip regardless of how much capital you have.
2: With only $500 you are going to have far less margin requirement which means more times than not you will be stopped out of your trade for a loss. Then you will get frustrated and say how broker scammed you on this forum when in reality you scammed yourself by not having the capital to increase your margin so that the market has a chance to move without stopping you out.
So more capital = less risk.
And lastly, do not forget you can always withdraw your money from broker if you feel this is not for you. So starting with $10,000 does not mean you risk $10,000. What it means is you protecting your trades being stopped out incurring you losses. Its actually a safety measure for you. If you find after some minimal trades this is not for you, withdraw your capital.
Capital is protection, not risk. You put no capital in, then you risk because you have no protection.
Last edited by a moderator:
Yes, when a trader is able to control huge losses then he should decide for some big investment in a trading account. Good advice I like that just invest 10% of your investment that will give you a clear picture of how much you are making or losing out of it. This experience can be possible on demo and then grow slowly and regularly your live account with minimum capital and risk. You need not show any hurry in this business.
AlecR
Corporal
- Messages
- 104
For experiments just invest a little amount that you can easily bear the loss if you not win. If a trader invests one time all amount in a trading account you would not have any backup. a micro account needs a minimum investment of $10 or more so that you deal with micro pips. After getting experience a trader can decide how much investment should be safe for him to trade on the base of his trading experience and performance.
Farm_Yard_Forex
Corporal
- Messages
- 112
Realistically, a few grand to make decent money probably but if you can't afford to lose it you shouldn't be investing it.
marco_mmbiz
Sergeant
- Messages
- 200
If you are a newbie to Forex then you can start with 1.000USD/EUR/GBP, because if your account leverage is 1:500 starting with 0.01lot makes sense for 1.000USD/EUR/GBP. Stick to the rule "1lot for every 100k of your account size" then. If you use a lower leverage, like 1:100 or even 1:50 you could also start with a 200-500USD/EUR/GPB account and use 0.01lot per trade.
But if you're an already experienced trader you can start with lets say something between 50k and 200k on your account. Why? Because most professional traders can make an average between 2% to 10% per month on the long run (for more than 2 years). On a 50k account you can make 1k-5k per month, on a 200k account you could make 4k to 20k per month.
The less pressure you have (the higher your account is) the better you can make a living from it.
Don't trust anyone who says you can make 100% per month starting with a 500USD/EUR/GBP account. Most of those people already crashed their accounts.
P.S.: Always only "invest" what you can afford to lose. If you want to invest for real (not trading or gambling) go to your insurance agency or to your direct bank. Some of them have pretty good ROI's too, and it's much more safe than "investing" in Forex.
But if you're an already experienced trader you can start with lets say something between 50k and 200k on your account. Why? Because most professional traders can make an average between 2% to 10% per month on the long run (for more than 2 years). On a 50k account you can make 1k-5k per month, on a 200k account you could make 4k to 20k per month.
The less pressure you have (the higher your account is) the better you can make a living from it.
Don't trust anyone who says you can make 100% per month starting with a 500USD/EUR/GBP account. Most of those people already crashed their accounts.
P.S.: Always only "invest" what you can afford to lose. If you want to invest for real (not trading or gambling) go to your insurance agency or to your direct bank. Some of them have pretty good ROI's too, and it's much more safe than "investing" in Forex.
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