Forex trading has taken the world by storm. More and more people are getting pulled towards 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 give you a clearer picture. Let’s look at them individually to provide a clearer picture for you.
5 Key Factors To Find Your Minimum Capital Required for Forex Trading
Forex Broker
A 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 derived minimum deposit zar.
This way, traders can know the amount to start forex trading with the broker. Moreover, you can also contact a brokerage company about this issue.
Account Type
The account type is the most important factor affecting your starting forex capital. Almost every brokerage company offers various accounts for its users. Each class 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 versions. 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.
Leverage
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 power is measured in ratios. You would see it at 1:300.
If the broker offers leverage, it can be a plus point. You can get started with a smaller amount.
Currency Difference
Since forex trading is all about currencies, this factor is vital. 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 whether you want to trade a large amount. If you are a new trader, starting with less money is best. However, if you are experienced, you can spend way more.
Conclusion
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.