The Forex market is the most approachable financial market, requiring only a small amount of capital to open an account. Unlike the stock market, there’s no legal minimum that you’ll have to start forex trading. Research shows your profitability may be influenced by the amount of capital in your forex trading account. How much money you need to trade forex is one of the first things that you need to deal with if you want to become a forex trader.
Which broker you select, (Recommended ICMARKET) which trading platform or strategy you use is also important, but how much money you start with will be a colossal determinant of your ultimate achievement. However, not all traders are alike and not all of them do the same. A day trader can not need the same amount of money that a swing trader does to start forex trading. Your goals will also decide how much money you need to exchange forex. Are you simply trying to expand your account, or are you trying for daily revenue from your forex trading?
A bigger size of the account means an improved broker status. Spreads can be tighter, which means you’ll earn a little more and lose a little less in every trade. This is a clear advantage but certainly not the most significant advantage. A bigger account in some situations means better customer service with the broker and maybe other advantages. For example, Best Brokers can offer you boosted mobile services. It is easier to implement money management principles with more money in the account.
If you’re serious about forex trading it’s nice to have written down some specific goals. One of those realistic goals is how much money you gain from your trading activities. The size of your forex trading account strongly affects what is a reasonable return. It’s not reasonable to assume to make $1 million in a short space of time from a $10k trading account unless you take very significant risks that would wipe your entire account clean. If you have a clear monetary goal in mind, you may want to evaluate what size forex trading account to use to achieve your goals with reasonable expectations.
Results – Instagram