In today forex faq, we have a question from one of our fellow traders asking about the amount of startup capital he should deposit.
Below is the question:
What is the right amount or reasonable amount someone can start with, also being comfortably with. Coz brokers are offering as low as $100 and others as high as $10,000.
Since you are asking me about the amount to deposit, I assume that you have a working strategy on hand already. If you do not, please do not trade with your real money.
My personal suggestion is to deposit at least $2,500 to be able to see good income from your trading. Lets assume that you make a 20% returns from your strategy, if you deposit $100, you will only be making $20 per month. If you deposit $2,500, you will be making an extra $500 per month.
For a start, I will not advice you to go for $10,000 deposit as you do not have the experience to deal with trading $10,000 account. You will see that your fear will overcome you as you see the losses gets big when the market is moving against you. Something you will have the tendency to exit your position early due to this fear.
Personally I started my account by depositing $5,000 but I got my account wiped out twice in a row. I decided to give myself another chance and therefore spend several months learning new strategy and practicing it. I then deposited another $5,000 to trade and the account has grew till today.
So don’t rush to make money in trading, just treat it as a place to grow your wealth and you will realize how much you make after a year of trading with a working strategy.
I hope that I have answered your question and do feel free to give your comment below.