Forex trading has taken the world like a storm. More and more people are getting pulled towards the idea of trading in different currencies. However, a frequently asked question is, how much money do you need to start forex trading?
Well, there’s no straightforward answer. That’s because there are several key factors affecting your initial cost. We will also mention the Exness minimum deposit to provide you with a clearer picture. Let’s look at all of them one by one to provide a clearer picture for you.
5 Key Factors To Find Your Minimum Capital Required for Forex Trading
A forex brokerage house tells you the minimum capital required to start forex trading. Every broker works on different conditions. Therefore, the starting amount varies from broker to broker. If you want to find out the exact number, you can easily do so. Every legit brokerage company features its initial deposit amount on its website. Read more about deriv minimum deposit zar
This way, traders can know the actual amount to start forex trading with the broker. Moreover, you can also contact a brokerage company about this issue.
The most important factor that affects your starting forex capital is the account type. Almost every brokerage company offers various accounts for its users. Each type has different features, such as spreads, commission, leverage, and initial deposit.
This initial deposit amount plays a key role in deciding your starting capital. Usually, account types are divided into three main categories.
The first one is a basic account aimed at new traders. It has the lowest initial deposit amount of about $5-10. For instance, the Exness minimum deposit is $10 for its basic account.
The second one is the standard account. This one is for intermediate traders who want to upgrade their basic accounts. Its minimum deposit can start from $50 and go as high as $100.
The last one is the premium account. As the name suggests, it has features for experienced and advanced traders. But, it also has a relatively higher minimum deposit. Depending on the broker house, it can be around $100 to $500.
If you want to calculate your minimum capital, it’s best to know if your broker offers leverage for trading. It allows you to trade in higher value than your minimum deposit. The leverage is measured in ratios. You would see it like 1:300.
If the broker does offer leverage, then it can be a plus point. You can get started with a fewer amount.
Since forex trading is all about currencies, this factor plays a vital role. Calculating the currency difference can lead to a better start in trading. It can also help you plan out your initial budget to kick-start your career in the forex world.
How Much Are You Willing to Trade?
After signing up and paying the initial deposit to your broker, it depends entirely on you whether you want to trade a large amount or not. If you are a new trader, it’s best to start with less money. However, if you are experienced, you can spend way more.
If we sum up a total number based on the above factors, you will need approximately $50 to $100 to have a good start in forex trading. The Exness minimum deposit will also help you understand better about brokers.