Questions about Initial Deposit and Leverage

bigdolly

Sergeant Major
Messages
944
I would say that using a Leverage of 1:100 is safe and also it is the leverage that goes with the ECN Forex trading :)
But what's the difference with STP? I heard and read a lot of comments about their nature but basically i get same spreads and execution on Hotforex (STP) and FXCM (ECN). So I consider these two broker models the same
 

EuroTrader

Sergeant Major
Messages
1,039
But what's the difference with STP? I heard and read a lot of comments about their nature but basically i get same spreads and execution on Hotforex (STP) and FXCM (ECN). So I consider these two broker models the same
The differences between the STP and ECN:

STP
= This is a Straight Through Processing Model in which the broker directs your trades to the Liquidity providers and adds its markup fees in the form of spreads. So spreads are higher in this model, The amount of deposit required is lower and higher leverage can be offered. The depth of market will be limited and all orders may not get filled.

ECN = This is the Inter-bank market consisting of Large Banks which form the Electronic and Communication Network consisting of 100,s of Liquidity providers. The spreads are market and the lowest may be ZERO also at some times in Majors. The broker earns only commission on your trading volumes. The Leverage will be lower and amount of deposit required higher. The depth of market is higher and all orders get filled.
 

bestman

Recruit
Messages
1
Hello everyone,

I am just starting out with Forex and would like to begin trading with real money in the next few weeks. I have been playing with a practice account for three weeks now and turned the fake $50,000 into ~$117,000. I am not sure if that is good or bad; as starting out with a lot of money is probably easier.

Anyway, I have $2,500 that I would like to start out with. Is a goal of making ~$25-40/day with such an amount realistic? Also, what leverage would you suggest I use for such a small account?
when starting out with a broker I suggest you begin with an even smaller amount(max500) and even before that you should check that broker here :D :D then try bringing your account to its limits and see how the broker reacts. in the end leverage conditions shouldn't be that different for a 500$account and a 2500$ account so...
 

EuroTrader

Sergeant Major
Messages
1,039
when starting out with a broker I suggest you begin with an even smaller amount(max500) and even before that you should check that broker here :D :D then try bringing your account to its limits and see how the broker reacts. in the end leverage conditions shouldn't be that different for a 500$account and a 2500$ account so...
It is always a better idea to start doing our trades with lesser amount of funds and then as the time goes by we can increase our trading corpus to the desired levels :D
 

fxleon42

Recruit
Messages
1
May I ask you what leaverage it's better to use for beginners with for example 500 USD real account?
The best leverage is the one which gives you moderate profit without too much risk. it honestly depends on the broker as some have funky rules about news trading/leverage relation.
 
Messages
1
Hello everyone,

I am just starting out with Forex and would like to begin trading with real money in the next few weeks. I have been playing with a practice account for three weeks now and turned the fake $50,000 into ~$117,000. I am not sure if that is good or bad; as starting out with a lot of money is probably easier.

Anyway, I have $2,500 that I would like to start out with. Is a goal of making ~$25-40/day with such an amount realistic? Also, what leverage would you suggest I use for such a small account?
nobody will ever advise you to start even slightly big with a broker with which you have not experienced live trading yet. somebody mentioned to start with 500$ which is good but why not even lower? :D I'm all about minimizing the loss so..
 

Anna Sergeeva

Private
Messages
20
nobody will ever advise you to start even slightly big with a broker with which you have not experienced live trading yet. somebody mentioned to start with 500$ which is good but why not even lower? :D I'm all about minimizing the loss so..
I think that 500 for beginning is OK. When you'll feel comfortable with a broker, you can increase amount of the deposit.
 

ForexVerified

Private, 1st Class
Messages
582
I think that 500 for beginning is OK. When you'll feel comfortable with a broker, you can increase amount of the deposit.
$500 should be enough, but better to trade with 0.01 lots at the beginning (100 pips = $10). It'll make you feel less worried when losing money and it'll help you stay longer in the game. Once you feel comfortable increase lot to 0.02 and so on.
 

JeremySultan1

FiboGroup Multi
Messages
53
of course its better to start with not big money, I started even less then 500$ and I don't regret. Trading with demo accounts doesn't prepare you for real trading. You will have a lot of time to put more money in account. so it's better not to hurry.
 
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