Are you planning to trade forex? Do you wish to know how much money do you need to start forex trading? If so, then read our guide concerning how to start forex trading and how much money do you need to start forex trading. But before we go talking about the investment that you need to start forex trading, we would like to give a little overview of the forex market so you know what this is all about, and what in reality you can expect by trading forex. Forex trading is often misunderstood by many people. There is a large number of people who join the forex industry with a view of becoming rich overnight.
This is not the case, forex trading is not as easy as it is perceived. You need to have a lot of knowledge and expertise to trade forex successfully. Forex market is considered to be one of the most liquid markets of the world. It has highest volatility rates. People can lose their investment in all of a sudden. Please, be informed that we do not wish to scare you away but all we want is to make you prepare to face the challenges. Never expect unrealistic returns. Nowhere in the world can you become rich overnight unless you win a jackpot, lottery or prize bond.
Having said that, we now would like to share some facts with you concerning the forex market. Forex market is massive. It has a daily trading volume of more than 5.3 trillion dollars. The market is dominated by two types of brokers including STP and Market Makers. To start forex trading, you need to open an account with a broker offering trading services in forex, commodities, stocks, indices, currencies. Cryptocurrencies and CFDs. The minimum deposit amount is different with each broker. Some brokers require you to start high, some allow you to deposit less. There are many which even offers you no deposit accounts to get started.
So, how much money do you need to get started? Well, there is no hard and fast rule concerning the minimum or maximum investment to trade forex. You can start trading by investing thousands of dollars, on the other hand, forex trading can be started without investing a single penny. You can choose to open Gold, Premium or VIP account, while micro or mini accounts can also be opened to start trading forex. But the most important thing you need to consider is to open an account with regulated brokers. Why do we say that? Let us mention some points below to make you understand the importance of a regulated broker in trading forex.
Regulated Brokers Keep Your Investments Secure
Since regulated brokers are bound to abide by the rules and regulations of their respective regulatory bodies, therefore, they are required to exercise maximum safety measure for the security of client’s funds. Regulated brokers often keep investments of their clients in segregated bank account preferably with investment grade-A banks to ensure the maximum protection.
Fast Deposit and Withdrawals Procedures
There is no use of opening a forex trading account with a broker which cannot facilitate you in time concerning deposits or withdrawals. What to do with profits, if you are not able to withdraw them on time? Regulated brokers always make sure that deposit and withdrawals requests are dealt with efficiently. You can expect your deposit or withdrawals requests to be processed within 24 hours with a regulated broker.
Excellent Customer Support
Often scam brokers do not offer any customer support to their clients after they are done with deposits. This is, however, not the case with regulated brokers. You receive excellent customer support from a regulated broker round the clock. They tend to remain fair and responsive to their customers as long as customers hold an account with them. They offer you great customer services even you do not hold an account with them.
Instant Trade Execution
To trade following best trading opportunities, it is vital to use a platform that allows your trades to get executed instantaneously. Some brokers, however, manipulate their customer’s trades by offering slow execution rate. This sometimes results in a loss of trading opportunities. Regulated brokers are less likely to follow this approach. They tend to offer you fast execution rate so you can have more profits.
Final Words
We believe, forex trading is not about how much money do you need to start it, it is about how to start forex trading purposefully. Since you can start forex trading by investing any amount, therefore, minimum or maximum deposit amount should not be the point of concern. You only need to make sure that you open an account with a regulated broker. However, opening a forex trading account with a regulated broker won’t make you earn profits unless you put your efforts. Try learning forex effectively and avoid same mistakes over and again. Stay calm and be optimistic while trading forex and soon things will start working for you.