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General => General Trading Discussion => Topic started by: sammcgee on March 26, 2013, 02:17:07 AM

Title: What is the minimum limit of investment?
Post by: sammcgee on March 26, 2013, 02:17:07 AM
I am a new here in forex trading and still not opened an account in forex trading. I am deeply studying and analyzing the information and techniques of the trade. I am little confused about the minimum limit of investment in forex trade. Some say that I can start business with as low as $ 10 but some say that it can be started with at least $ 250. What is the reality about it?
Title: Re: What is the minimum limit of investment?
Post by: fxman on April 13, 2013, 09:15:23 PM
The minimum amount of investment can vary from broker to broker. Some broker allow $1 minimum deposit and also some broker does not allow less than $1000 deposit.
I started trading with only $60. In my two year experience of forex trading last week was the best week. As I have made $173 profit from only $27 investment in Xe markets .
But I believe that to make profit by maintaining proper mm, larger amount is important. But for beginner $100 in micro account is enough and they should select the lowest lot .
Title: Re: What is the minimum limit of investment?
Post by: oshun123 on April 14, 2013, 01:12:55 AM
I would honestly not think about trading forex with less than 10.000 USD. In theory you could start trading with as little as 100 USD in your account but even if you are lucky you will not make a fortune out of such a small account. Traded properly you may have doubled your account after one year...still having a small account. Probably with such a small account you take too much risk...and end up gambling but not trading.



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Title: Re: What is the minimum limit of investment?
Post by: Tempestshade on April 14, 2013, 01:28:05 AM
I would honestly not think about trading forex with less than 10.000 USD. In theory you could start trading with as little as 100 USD in your account but even if you are lucky you will not make a fortune out of such a small account. Traded properly you may have doubled your account after one year...still having a small account. Probably with such a small account you take too much risk...and end up gambling but not trading.

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I disagree that you need $10,000 to start trading. My first shot at forex was with an initial investment of about $500. I did indeed lose that entire amount but that was due to reckless trading. My 2nd attempt was $1800 which I am still earning healthy profits from. My 3rd account started with $775 which I have tripled so far. I trade only with EAs and more recently signals.

It is possible to make decent profits with a small initial investment.

But it really depends on what your trading style is. If you plan to be 'in' the market for days, and see big swings you will want a larger account to keep your trades well within your risk tolerance. If you use an EA with proper risk management that is in and out of the market relatively quickly you may be able to trade with a very small amount.

There is no definite set answer. You may want to start a cent account with $10-$100 to simulate a large account to get the feel for things before you go and commit a larger amount of capital. If I would re-do everything I would definitely do this. You also must remember to never treat your trading as gambling even if it is only $10. This will lead to bad habits.

At the end of the day you have to get into the market and learn. Trading a demo account will only benefit you if you already possess the proper emotions to trade live. Obviously this is my personal experience. Everyone learns differently. I know demo accounts did nothing for me, and led to me being over-confident going into a live account and burning a $500 account. It was a needed lesson, but I could have saved some money.

To summarize everything above you need to know how you want to trade to know how much of an initial investment you will need.

Now If you literally mean what is the minimum deposit a broker will accept you might be surprised to know that there are some brokers out there where only $1 is needed to start trading. Fxman pointed this out too.

David
Title: Re: What is the minimum limit of investment?
Post by: greadex on April 16, 2013, 08:48:58 AM
Some broker has an investment as low as $5. Just check on Them, like Hotforex, and Agea the broker that I use to trade, the investment is only $5.
Title: Re: What is the minimum limit of investment?
Post by: Imelda123 on April 18, 2013, 11:01:08 AM
I am a new here in forex trading and still not opened an account in forex trading. I am deeply studying and analyzing the information and techniques of the trade. I am little confused about the minimum limit of investment in forex trade. Some say that I can start business with as low as $ 10 but some say that it can be started with at least $ 250. What is the reality about it?

There is no standard amount for new traders. How much to fund a trading account is decided by you depending on your financial situation. I started trading with $250 with my broker FXPRIMUS but I think they offer lower deposit now. $100 if I'm not wrong.
Title: Re: What is the minimum limit of investment?
Post by: pinoytrader on April 19, 2013, 08:56:49 AM
the larger the amount the bigger the profit the lesser the risk :) but for starters just stick with demo, and if you go live yeah you can start with 250 or even lesser, I started with 120 dollars when i first joined hotforex a year and a half ago. just stick to micro lots and a smaller leverage for safer trading :) and best of luck. think of it as testing the waters of live trading, and in the future you can go for larger amounts :D
Title: Re: What is the minimum limit of investment?
Post by: deathlord on April 19, 2013, 10:08:52 AM
the larger the amount the bigger the profit the lesser the risk :) but for starters just stick with demo, and if you go live yeah you can start with 250 or even lesser, I started with 120 dollars when i first joined hotforex a year and a half ago. just stick to micro lots and a smaller leverage for safer trading :) and best of luck. think of it as testing the waters of live trading, and in the future you can go for larger amounts :D
Completely wrong statement. If in your calculation more money means more profit, then you are not using more money to reduce the risks, so the percentage risk stays exactly the same, and the absolute risk increases linear to the increase in profits.
Title: Re: What is the minimum limit of investment?
Post by: thelastbear on April 19, 2013, 10:15:16 AM
I would honestly not think about trading forex with less than 10.000 USD. In theory you could start trading with as little as 100 USD in your account but even if you are lucky you will not make a fortune out of such a small account. Traded properly you may have doubled your account after one year...still having a small account. Probably with such a small account you take too much risk...and end up gambling but not trading.

I have to disagree with your $10K recommendation. Most forex traders did not start out like that and should not. Of course you will not make a fortune, but you can execute a trading strategy with $1,000 and even smaller amounts. Leverage helps you out and as long as traders remain committed to their risk management together with their strategy they can trade in a $100 account. Those who can't manage a $100 or $500 trading account will not be able to manage a $10K account or higher. The principles are the same.

Title: Re: What is the minimum limit of investment?
Post by: oshun123 on April 19, 2013, 10:22:24 AM
Actually, i did not mean  you cannot start trading forex with less than 10.000 USD.

Basically I think with a small account traded correctly you cannot become rich in short term. This is the reason why most small accounts are traded with heavy risk in order to try to double or triple the account size in short term. Even if successfiul, this method will fail later when trading big accounts.

You can learn certain aspects of trading for sure even on Demo, but psychological aspects like handling fear etc. you will not learn with a small account.

But anyway, what is a big account for one person may be a small account for another person, considering where in the world you are located ;-) ...so it is not about absolute numbers ..probably the mentioning of an absoulte account size I did in my post was wrong 


I would honestly not think about trading forex with less than 10.000 USD. In theory you could start trading with as little as 100 USD in your account but even if you are lucky you will not make a fortune out of such a small account. Traded properly you may have doubled your account after one year...still having a small account. Probably with such a small account you take too much risk...and end up gambling but not trading.

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I disagree that you need $10,000 to start trading. My first shot at forex was with an initial investment of about $500. I did indeed lose that entire amount but that was due to reckless trading. My 2nd attempt was $1800 which I am still earning healthy profits from. My 3rd account started with $775 which I have tripled so far. I trade only with EAs and more recently signals.

It is possible to make decent profits with a small initial investment.

But it really depends on what your trading style is. If you plan to be 'in' the market for days, and see big swings you will want a larger account to keep your trades well within your risk tolerance. If you use an EA with proper risk management that is in and out of the market relatively quickly you may be able to trade with a very small amount.

There is no definite set answer. You may want to start a cent account with $10-$100 to simulate a large account to get the feel for things before you go and commit a larger amount of capital. If I would re-do everything I would definitely do this. You also must remember to never treat your trading as gambling even if it is only $10. This will lead to bad habits.

At the end of the day you have to get into the market and learn. Trading a demo account will only benefit you if you already possess the proper emotions to trade live. Obviously this is my personal experience. Everyone learns differently. I know demo accounts did nothing for me, and led to me being over-confident going into a live account and burning a $500 account. It was a needed lesson, but I could have saved some money.

To summarize everything above you need to know how you want to trade to know how much of an initial investment you will need.

Now If you literally mean what is the minimum deposit a broker will accept you might be surprised to know that there are some brokers out there where only $1 is needed to start trading. Fxman pointed this out too.

David
Title: Re: What is the minimum limit of investment?
Post by: ituglobal on April 22, 2013, 10:03:30 PM
oshun123:

I agree with you. Too many people don't have enough money to trade and they want to get rich. How can that be possible? You can even start with $1, but don't expect to make any living from that. I won't expect to  make an exclusive living with $5000 unless I'm ready to be a suicide trader.
Title: Re: What is the minimum limit of investment?
Post by: Rambo35 on April 24, 2013, 08:40:24 AM
oshun123:

I won't expect to  make an exclusive living with $5000 unless I'm ready to be a suicide trader.

I disagree with that. It all depends on the trader and how much they seek to earn. Maybe for you, $5,000 is the amount, but others need much less or much more. I have started with much less, but I am not depending on forex trading as my primary source of income yet.
Title: Re: What is the minimum limit of investment?
Post by: seawater on June 20, 2013, 02:42:22 PM
The minimum investment possible in any broker is 1$. Only if it is a micro or cent account and that broker allows you to deposit such a  low amount.
Title: Re: What is the minimum limit of investment?
Post by: goldenmember on June 23, 2013, 04:44:15 PM
Actually, i did not mean  you cannot start trading forex with less than 10.000 USD.

Basically I think with a small account traded correctly you cannot become rich in short term. This is the reason why most small accounts are traded with heavy risk in order to try to double or triple the account size in short term. Even if successfiul, this method will fail later when trading big accounts.

You can learn certain aspects of trading for sure even on Demo, but psychological aspects like handling fear etc. you will not learn with a small account.

But anyway, what is a big account for one person may be a small account for another person, considering where in the world you are located ;-) ...so it is not about absolute numbers ..probably the mentioning of an absoulte account size I did in my post was wrong 


Well, if its worth anything I completely agree with Oshun.
Title: Re: What is the minimum limit of investment?
Post by: Forexrider on June 24, 2013, 01:21:10 PM
The minimum to open an account in any broker almost starts from $1, but that doesnt make any sense for trading. Learn and then put some $200 or higher and start making money.
Title: Re: What is the minimum limit of investment?
Post by: donalduck on June 27, 2013, 09:56:37 AM
I know some brokers have offer good minimum deposit like Exness ($25), Hotforex ($5). But some don't like Fxpro ($500).

But I would recommend you should start forex trading with $100 capital if you're still a new trader.
Title: Re: What is the minimum limit of investment?
Post by: Forexrider on June 27, 2013, 11:03:16 AM
Minimum may vary from broker to broker but first we need to determine the amount we are willing to risk and then trade with it.
Title: Re: What is the minimum limit of investment?
Post by: knightrider on September 05, 2013, 12:34:39 PM
Money is not any fact for trading such how much deposit. But yes, a minimum number of amount has to deposit. But first of all need to know the market. Without knowing that, you should lose anyhow with any deposit/ capital.

So, you have the point. Thanks :)
Title: Re: What is the minimum limit of investment?
Post by: knightrider on September 13, 2013, 09:31:27 AM
I think this is right to invest the minimum $200 at first. But first it should be needed to be known all about forex!

Because if you invest $10,000. then it can be gone if you don't have the achievement forex. So get it first! :)
Title: Re: What is the minimum limit of investment?
Post by: kaltrax on September 13, 2013, 12:30:34 PM
 

   10.000 $ and start whith little accounts whith 100 - 200 $ trading 0.01 fixed lots, until you

    can see your trading makes double. Seems so easy...., could you find patience to make it

   possible?  ;)
Title: Re: What is the minimum limit of investment?
Post by: bismillahwd on September 13, 2013, 03:20:16 PM
For me

1. For starting finding own trading style, 100-500usd , and prepare that 3-5 times (Blown, drain, maybe 1000% in a week ROI, and then blown again)

2. When already could maintain 6-9 month profitable. Go 1000-5000k.

3. When already having more than 2 years consistent profit, we could go for living from 10k-20k.

But thats my way, others could be different.


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Title: Re: What is the minimum limit of investment?
Post by: Forexrider on September 14, 2013, 10:06:17 AM
The minimum amount of money to trade in the forex market is totally dependent upon the trader which is upto the trader to decide their risk appetite.
Title: Re: What is the minimum limit of investment?
Post by: seawater on September 16, 2013, 07:27:20 PM
The minimum amount of investment can vary from broker to broker. Some broker allow $1 minimum deposit and also some broker does not allow less than $1000 deposit.
I started trading with only $60. In my two year experience of forex trading last week was the best week. As I have made $173 profit from only $27 investment in Xe markets .
But I believe that to make profit by maintaining proper mm, larger amount is important. But for beginner $100 in micro account is enough and they should select the lowest lot .
Yes of course it is different from broker to broker and we had to choose the broker which meets the all requirement of the trader so trader must know proper trading skills to earn good profit from risky Forex market.
Title: Re: What is the minimum limit of investment?
Post by: FlorinInvest on September 17, 2013, 03:21:55 AM
I think there is no specific amount for opening a new account in Forex. We can begin trade with any amount but we should trade with proper planning.
Title: Re: What is the minimum limit of investment?
Post by: timetotrade on September 17, 2013, 06:40:03 AM
It is not really about how much you start with, but more, how often you can win, compared to lose. If you lose more than you make, then initial account balance is totally irrelevant.
Title: Re: What is the minimum limit of investment?
Post by: FxStarflight on September 17, 2013, 10:25:02 AM
Start with an amount that you’re comfortable with, financially and psychologically.
Title: Re: What is the minimum limit of investment?
Post by: seawater on October 25, 2013, 07:39:52 PM
Money is not any fact for trading such how much deposit. But yes, a minimum number of amount has to deposit. But first of all need to know the market. Without knowing that, you should lose anyhow with any deposit/ capital.

So, you have the point. Thanks :)
Proper analysis over Forex market is very important so that we can trade properly because it is very risky and plans and strategies helps the trader to generate the reasonable profit.
Title: Re: What is the minimum limit of investment?
Post by: Aaronpp on August 27, 2019, 09:05:55 PM
You can start trading with the amount you have available, no matter how much it is but I recommend that you do not exceed $100, You can learn with it and when you have a little more experience you can increase the amount if you want but in the end the decision of how much to invest in the market is completely yours.
Title: Re: What is the minimum limit of investment?
Post by: FxTS on August 28, 2019, 05:08:46 AM
For sure, the existing entry threshold in Forex is very low. At the same time it is important to understand that trader starting with such small initial capital would have to expose his account to the huge risk otherwise his profit potential would be very low. For example, if he has a strategy that allows to get 20% and initial deposit of $100, he would spend one month to get $20. Of course, it is possible to increase the actual buying power by using leverage offered by the brokers. In fact, the size of leverages offered by Forex brokers is highest among other financial markets. High leverage has both advantages and disadvanteges. The main advantage is that it allows trader to operate with large positions and to increase profit potential. The main disadvantage is that leverage trading is always associated with high risk, so it would be better to reduce leverage usage, especially for newbie traders.
Actual minimum investment size also depends on particular trading style and strategy used by the trader. In general, swing/mid-term strategies require larger initial capital since the position should be held for several days or even weeks that means the exposion to risk of unexpected prie gaps that could be either in favourable or in unfavourable direction. That is why swing traders use wider stops and smaller position sizes to reduce the possible risk. At the same time, active daytraders have better control over their risk so they can use more aggressive strategies to maximize their profit expectations. Thus, traders if this kind could start with smaller initial trading capital.
Title: Re: What is the minimum limit of investment?
Post by: drunkfx on August 28, 2019, 07:19:49 PM
You can start trading with the amount you have available, no matter how much it is but I recommend that you do not exceed $100, You can learn with it and when you have a little more experience you can increase the amount if you want but in the end the decision of how much to invest in the market is completely yours.

I started trading with 100$ deposited to Hotforex, it is perfect amount and what is most important I could afford to lose that. I didn't feel emotional pressure from the risk and later I realised that's it's crucial part in managing your psychology in trading.
Title: Re: What is the minimum limit of investment?
Post by: Arsssele on September 10, 2019, 04:10:47 PM
As you are new trader, I would recommend to you to start with mini account, after you finish your homework on demo account. Initial investment on these accounts can be as little as $10. This amount is enough for you for a start on real account. Hope that other forum members would agree with me
Title: Re: What is the minimum limit of investment?
Post by: fxopen78 on September 19, 2019, 12:16:05 AM
One advantage of forex trading right now, if on the past only big trader that having big money to take part in forex trading, but now with technology development of internet, make forex can accessed any individual trader with small money even with 1$, but indeed this is not sufficient capital to start trading, newbie choose micro account cent is safe to step to start trading
Title: Re: What is the minimum limit of investment?
Post by: drunkfx on September 22, 2019, 04:08:18 PM
One advantage of forex trading right now, if on the past only big trader that having big money to take part in forex trading, but now with technology development of internet, make forex can accessed any individual trader with small money even with 1$, but indeed this is not sufficient capital to start trading, newbie choose micro account cent is safe to step to start trading


I think the lowest amount to make trading reasonable is 100 bucks. Lower amount will make your trading slow if you will stick to prudent risk limitations. But after all it depends on your experience
Title: Re: What is the minimum limit of investment?
Post by: fxopen78 on September 30, 2019, 11:52:58 PM

I think the lowest amount to make trading reasonable is 100 bucks. Lower amount will make your trading slow if you will stick to prudent risk limitations. But after all, it depends on your experience

Yes, $100 is good amount to start trading, we can use micro or mini account, for learning stage this sufficient capital to improve trading strategy, but actually, if still newbie, practice in demo account will safer than immediately start to real account, maybe often we hear jargon if 90% trader fail.
Title: Re: What is the minimum limit of investment?
Post by: drunkfx on October 01, 2019, 03:17:12 PM
Indeed, I also started with Micro account with Hotforex and 100 dollars seemed a decent capital to start with. Even a long losing streak was manageable because losses per trade didn't exceed 1 dollar. I think its very efficient way to test live trading conditions.
Title: Re: What is the minimum limit of investment?
Post by: fxopen78 on October 02, 2019, 12:21:07 AM
Indeed, I also started with Micro account with Hotforex and 100 dollars seemed a decent capital to start with. Even a long losing streak was manageable because losses per trade didn't exceed 1 dollar. I think its very efficient way to test live trading conditions.

Due micro account is lower risk than standard contract account, for learning stage will more enjoy and not too much get in emotion pressure, usually will different emotion when trading with micro then use standard contract, look value per pip is different this could influence on trading decision
Title: Re: What is the minimum limit of investment?
Post by: Loperte on October 22, 2019, 02:43:12 PM
Drunkfx, I think that you have made a very good start. I also think that $100 or lower is good for beginners, but, correct me if I am wrong, you have been using right money management as your loss per deal did not exceed $1. Am I right?
Title: Re: What is the minimum limit of investment?
Post by: fxopen78 on October 28, 2019, 12:01:41 AM
I think if start with $100 and having risk management plan 1% each plan trading, it's mean one order loss is 1$, hence still having more opportunity to open trades again, but maybe in real trading, taking risk 1% is too small, might often hit the loss
Title: Re: What is the minimum limit of investment?
Post by: Loperte on November 10, 2019, 10:56:58 PM
I would agree that there is huge pressure when you open your first real account. This comes from a fact that you are playing with real and your money. Loss on real account means real loss of your money. This is why it is better to start with minimum possible investment
Title: Re: What is the minimum limit of investment?
Post by: fxopen78 on November 12, 2019, 03:48:34 AM
I would agree that there is huge pressure when you open your first real account. This comes from a fact that you are playing with real and your money. Loss on real account means real loss of your money. This is why it is better to start with minimum possible investment

Yes usually as beginner when start trading with real money, hence emotion pressure will more deeply be involved in trading, fear to losing money sometimes make us to make wrong decision, since look floating big loss hence only hope price will move to early track, but since face with small floating profit then close order immediately even only small profit because scared if turn to lose again
Title: Re: What is the minimum limit of investment?
Post by: drunkfx on November 13, 2019, 01:34:00 PM
I think the lowest reasonable limit is 100 bucks is a kind of a round amount which is psychologically good starting point both to calculate returns and evaluate performance. If you trade with lower amount if will create a kind of psychological ease to take high risks and lose them, but larger amount tend to create excessive emotional pressure which is hard to deal with if you a newbie.