It's not as easy as it sounds but is technically possible. What you need is to learn how to make the best of it and not waste your 10 dollars on the first try.

Considering how many brokers have been getting more and more beginner-friendly all these years, technically, you can trade with only 10 dollars or even lower than that. Some brokers do allow their clients to deposit as low as 10 dollars, some don't even put any limitation at all. But perhaps, what many traders mean when asking the question is can you successfully trade with only 10 dollars? Is it possible to grow your account from just 10 dollars?

Trading with 10 dollars

The truth is, a number of experts have realistically stated that at least 1,000 dollars are needed for traders to "get serious" in trading. That is because the higher the capital, the smaller your exposure to the market will be, so the chance of defending your trades against the market is likely more promising.

However, not all traders have 1,000 dollars to spare, so in the end, traders looking to enter the market with an affordable cost would sign up with the types of brokers that allow 10-dollar deposits. But did you know that there are some brutal truths regarding this matter?

 

Trading with Only 10 Dollars Is Not All Sunshine and Rainbows

There's definitely a reason why the majority of experienced traders suggest that starting with anything less than 1000 dollars is highly impossible. For a start, beginners are not advised to take that path since they will inadvertently turn to take high leverage; a red flag for rookies who don't know the other side of its edge.

It's also an undeniable fact that trading with only 10 dollars would just lead you to major losses that are more likely to wipe up your account. Say you're trading with a common stop loss target around 20-50 pips and take the smallest lot size of 0.01 per trade (MetaTrader does limit its minimum lot size to 0.01). It means you're risking 2 to 5 dollars every time you open a position, which is equal to 20-50% of your capital. This is even more startling when you make a comparison to the customary risk per trade that usually runs between 1-5%.

In other words, the chance of blowing your account in just a few trades increases dramatically when you trade only with 10 dollars. It may only take 2 to 3 consecutive losing trades to lose your whole account. For your information, even the most experienced traders can lose up to 6 trades in a row.

We're not saying that losing 6 consecutive trades should be normalized. But as a trader who gets involved in a market full of uncertainties, you should be prepared to face the worst-case scenario and learn how to deal with it. And truthfully, starting with only 10 dollars would not cut it.

If you consider the average returns of realistic forex trading, you would also understand where the concerns of trading with only 10 dollars come from. The fact is, maintaining a consistent 5% each month is already an achievement in forex trading. Now imagine all your efforts in a month be rewarded with a mere 0.5 dollars. Even if you're the most patient person in the world, the return amount would not be able to contribute significantly to your financial condition, especially if you're working to be a full-time trader.

With all the realistic conditions laid out, are you still interested to try trading with 10 dollars? If so, you don't really need to be overconcerned provided you have prepared yourself with these three important things.

 

1. The Ideal Broker

First and foremost, what makes your 10 dollar trading technically possible is the brokers that support it. So, it's very crucial to choose a broker based on its minimum deposit requirement. Brokers with starting capitals from 0 to 10 dollars should be where you start your search.

But you should not stop at the minimum deposit if you want to increase your chance. After filtering the minimum deposit, check the leverage, minimum lot size, and the trading spreads and/or commissions. All specs should support a beginner's trading condition. It would be worthless if a broker has a low deposit but can't provide tight spreads or micro lots.

Furthermore, to minimize your risk of trading, you should look for a broker that provides minimum lot sizes beyond the micro lot. It could be a nano lot or a cent account that could convert a micro lot into smaller lots in terms of the transaction size.

Take an example from the scenario above where you place a stop loss at 20 to 50 pips. If you use a nano lot (0.0001 lots), your risk size would only be around 0.02 to 0.05 dollars for each trade, which is even smaller than the rule of thumb 1% risk per trade.

Therefore, filtering a good broker to trade with 10 dollars is not a simple process. You need to consider multiple conditions that may take you into a few steps of choosing brokers with regard to their specifications. In that case, this broker finder should be able to assist you.

 

2. The Right Mindset

Now that you may find the ideal broker to start trading with only 10 dollars, should you enter the market right away? Don't get too excited first, for you need to get your mindset right so you would not end up draining your money in just a few trades.

As mentioned before, gaining a return of 5% per month is considered a success if achieved consistently. If you feel that it's too small for the efforts you may exercise, you would have to increase the target profit which is not advisable because then your risks would be elevated in doing so. Remember, trading is a "high risk high return" business, so you need to be realistic as to not pursue a higher return at the expense of blowing your whole account faster than a speeding bullet.

So, does it mean you have to be satisfied with getting 0.5 dollars each month at max? Well, it depends on the perspective. If you see it as an end goal with no improvement in sight, you will be trapped in an exhaustive cycle that's just not worth it. In comparison, if you regard it as a stepping stone that can be increased later on, trading with 10 dollars can be the right choice. You just have to prepare the plans and know when is the right time to increase your return. Of course, in doing so, you would have to be trading with a bigger capital than 10 dollars.

Another thing to keep in mind when it comes to setting the right mindset is avoiding revenge trading. Instead of that, accept your losses, learn from them, and move on to the next trade with a better plan to avoid the same mistakes. It is a golden rule that every successful trader applies regardless of their trading size.

 

3. The Proper Risk Management

Having been learning the right mindset, now it's time to practice the proper risk management. Just because you only risk 10 dollars - a relatively small amount for most traders, even beginners - doesn't mean you can just blow it up for the sake of learning. If anything, it would make a bad habit out of you, one that is capable of destroying your account again and again.

Hence, stick to any risk management that fits you best. You can exercise the 1% rule per trade, setting up your risk/reward ratio accordingly, implementing trailing stops in trending markets, and so on. It's important to always remember that dealing with 10 dollars in trading needs a way smaller approach than using micro lot, so it's better to keep your expected return low and count your results in percentage rather than the amount of money.

 

Is Trading with Only 10 Dollars Worth It?

It may not be a deciding milestone where you would multiply your balance straight away, but it could be a definitive start, your first step in trading even though you may have to add more deposits later on.

Afraid of blowing your whole account with up to 50% risk per trade? You can use a nano lot or cent account. In doubt because the return is minuscule? Consider trading with 10 dollars as just the initial step, then gradually increase your target when you're ready. It's like making a small step before taking leaps in the forex market.

See? Every concern and issue regarding trading with 10 dollars is actually solvable. It's just a matter of perspective and knowing the right feature to choose from a broker. But if you still come to a conclusion that trading with 10 dollars would just be a waste of your time, then there's no stopping you to open an account with at least 1,000 dollars, as long as it's not hot money you're using.

 

Did you know that trading with small money like 10 dollars is commonly associated with offshore brokers? Why is it mostly frowned upon in the trading community? Is it as bad as they say? Find out the answer in "Comparing the US and Offshore Brokers" so you can decide for yourself.