The amount of forex trading capital is intensely diverse, ranging from zero to thousands of dollars. How much is the ideal number? Can you actually achieve something from trading with small money?

The amount of capital invested in forex trading varies greatly from trader to trader. Some traders invest below $100, while some choose to invest above $10,000. On the extreme scale, some traders take an advantage of no deposit bonus so they don't need to invest any capital into their forex trading account at all.

Then, how much money should you allocate for forex trading? The answer, my friend, depends on your preference. The amount of forex trading capital may be determined based on the trader's ability. However, from this principle, there is one universal rule that every trader should understand, especially for beginners: "invest only as much as you are willing to lose". In other words, only invest money that you're completely prepared to lose.

See also: Currency Trading Guide For Complete Beginners

 

 

The Classification of Forex Capital Amounts

Determining the amount of forex trading capital is something you need to think about carefully. If you get a margin call, you should never let the losses reduce you into an emotional mess just because the amount is way out of your tolerance. Usually, the tolerance limit is the most ideal if it can be adjusted according to your financial condition and trading ability. However, if you are still confused about where to start on determining the tolerance limit, you can refer to this classification:

 

$0 (No Capital At All)

In this modern-day and age, does any useful service with zero cost still exist? The answer is yes! Or at least in the world of forex trading, that is. The secret trick is to take advantage of the broker's promotion like no deposit bonus. Another way to free trading is by taking part in a demo competition which usually offers real money as the prize. If you win a demo contest, you can start to grow your account from the prize. Isn't that basically the same as starting to trade with no capital?

Please do remember that if you use this solution, you shouldn't expect an enormous profit right away. The amount of prize or bonus gifted by the broker is not substantial. They're actually very small most of the time. However, the learning experience gained from trading with zero capital can be optimally used to hone and test your trading strategies for free.

See also: 10 Tips To Win Forex Trading Contest

 

$100-$250

With a capital of $100-$250, you can open an account and trade with a number of forex brokers. The important point to remember is to make sure to adjust your transaction volume (lot). It's usually recommended to use around 0.01 lot size to keep your margins strong. Also, remember not to open too many positions at a time because this will add psychological pressures in your trading.

This capital size is usually for short-term traders like scalpers. For traders who have extra patience, they can also use the day trading strategy, as long as they pay attention to the margin.

 

$1,000-$5,000

With a capital of $1,000-$5,000, you have more freedom to choose the trading strategy. Generally, traders with this investment size are more confident to become swing traders. Regarding the choice of account, you can start trading with a standard account. Through this account type, you can trade with 1 standard lot which holds a $100,000 unit transaction. Also, this account is a type that can be found in all forex brokers.

For traders who choose an automatic trading system, forex trading capital of $1,000-$5000 also gives them more freedom to use an Expert Advisor or EA. It is a software or algorithmic script that can be added to the forex trading platform to help them carry out transactions without waiting for manual instructions.

See also: The Beginner's Guide to VPS for Forex Trading

 

More Than $5,000

With this amount of capital, you will be "spoiled". How so? Because there are various additional facilities provided by the broker. For example, you can request additional premium trading signals or even the highest tier loyalty bonus.

However, be aware that big money made a lot of novice traders often forgot the importance of risk management since they feel less pressured and have way much more opportunity to open and close more positions. On the other hand, some novice traders may feel intimidated to make a decision, thus missing out on many trading opportunities.

See also: The Secrets of Trading Psychology

If your preferred forex broker provides a VIP or Premium account, then this amount of capital is perfect for complementing your trading activities. Generally, there is no limit to the strategy that you can use. You can freely apply any forex trading strategy, from scalping, day trading, auto trading, or position trading.

 

7 Go to Forex Brokers If You Start Small

If you are a beginner, you should not immediately start with big money. Do a trial run on the broker you choose, then observe how their trading condition works. When you first started trading, it's better if you can choose a good forex broker with small capital requirements, so you have a proper warm-up before trading with a bigger sum of money.

Forex trading used to be a monopoly of big players who own large capital. People used to have to deposit thousands of dollars at the least to start trading. Nowadays, it doesn't matter whoever you are, whether you are a hedge fund manager, an institutional trader, a businessman, a housewife, or even a student since there are many brokers with various capital requirements to pick from. With small to zero capital, you can start your journey into the world of trading with small money.

Talk about small capital, some brokers even offer no minimum deposit option, so you can set the initial capital yourself. You can start trading even if the initial deposit is only $1. To find out which forex broker is most suitable for you, you should take a quick look at the explanation below:

 

1. JustForex

JustForex enables their clients to deposit as small as $1 with a maximum leverage of 1:3000. This small capital forex broker can be an ideal option if you are just starting as it also provides an education center for newbies. To be the world's most customer-centric broker, where everyone can trade and invest in a simple and transparent way is JustForex's vision, showing that the company accepts all types of customers, professionals and beginners alike.

🌐 Website
justforex.com
Leverage
1:3000
💼 Regulation
FSAFSA
💲 Min Deposit
$1
Year Established
2012

Interest rate on funds
Bonus offers
Trading contests
Free education
Personal manager
MAM accounts
Segregated accounts
Managed accounts
Affiliate program
Islamic accounts available
Bitcoin
FasaPay
Neteller
Skrill

Established in 2012, JustForex becomes one of the leading brokers in the international forex industry. This broker is a subsidiary of JF Global Limited, regulated by FSA with license number 23933. Not only guaranteed by their regulation, liquidity in JustForex is provided by 18 biggest world banks. Moreover, clients are claimed to be provided with the best prices offered by those banks for the most beneficial orders.

JustForex always keeps the safety of clients from unpredictable loss, therefore it applies negative balance protection. That means when the clients' balance becomes negative due to sharp price changes, the broker will set it to zero. Clients' funds are also situated on the segregated bank account, indicating that JustForex ensures funds' safety by separating their client's money from their own fund.

Trading in JustForex can use any strategy without restrictions. The sharpness of the price quote increased from 4 decimal places to 5 decimal places. This makes the broker is suitable for virtually any strategy.

JustForex also holds a superior partnership program with a revenue-sharing model and CPA. Everyone can become JustForex partners and get benefits by attracting new clients or partners. The partnership program is multi-level. JustForex partners can also participate in Loyalty and VIP programs that are designed to increase revenue and support long-term cooperation.

Based in St Vincent and the Grenadines, JustForex continually offers deposit bonus with varying amounts. For payment fees, JustForex covers all expenses which may occur when traders deposit funds from more than 10 payment options, including Visa, Mastercard, FasaPay, Neteller, Union Pay, Perfect Money, Qiqi, and many more.

Not only from trading, traders have the opportunity to gain more profit by joining other special promotions. JustForex gives bonuses to social media users, especially Facebook. For traders who share JustForex promotional uploads, they have the opportunity to get a $100 bonus. Traders only need to send a report via email after sharing.

This broker offers several trading account types with a wide choice of trading instruments and leverage up to 1:3000. Their account types include Standard Account (min deposit $100 and spread from 0.1), Pro Account (min deposit $500 and spread from 0.1), and ECN Zero (min deposit $500 and spread from 0). The commission fee is only applied on ECN Zero.

For beginners, JustForex also provides Cent and Mini Accounts. The two accounts presents unique opportunities to trade in a risk-free environment while engaging on live trading conditions. The balance on the Cent account is measured in a cent. Meanwhile, mini Account is created for traders who want to choose any deposit they want, as traders can open this account with any amount of money. Spreads start from 0.3 on both Cent and Mini Accounts. JustForex also has a special swap-free account labeled as Islamic Account.

Some of the best services provided by JustForex make many clients interested in trading at this broker. Based on their data, a new account is being opened in JustForex every 8 seconds.

The company also offers traders looking for diversified investments, such as pair currencies, gold, silver, oil, crypto, energy, and indices. To attract the attention of traders from various countries, JustForex also provides a variety of languages on their official website, including English, Indonesia, Malaysia, Spanish, French, Portuguese, Mandarin, Korea, and many more.

After opening an account in JustForex, traders are provided with the benefit of enjoying forex VPS. It is a type of hosting, through which traders get access to the virtual dedicated server. With VPS, traders get a "remote desktop" where traders can install a trading platform that will provide the opportunity to trade around the clock and without interruptions.

The platforms provided by JustForex vary in MetaTrader 4, MetaTrader 5, Web, and Mobile platforms. This makes it easy for traders as they can access JustForex platforms anywhere and anytime. To get more information, traders can contact JustForex support team in various ways, including phone, email, live chat on their website, and social media.

Overall, JustForex is many traders’ favorite broker for they are able to provide various additional programs so traders can get more advantages.

 

2. Exness

You can open an account in this broker with a minimum deposit of $1. The spread is variable and competitive, with leverage that can go up to 1:2000. As a matter of fact, Exness is quite well-known among forex traders as a broker with reliable trading conditions even for beginners. However, this broker rarely holds promotions, trading contests, or other events to attract new clients.

🌐 Website
www.exness.com
Leverage
1:2000
💼 Regulation
Capital Markets Authority of Kenya CySEC FCA FSAFSCFSCFSCAThe Financial Commission
💲 Min Deposit
$1
Year Established
2008

Trading contests
Free education
PAMM accounts
LAMM accounts
Segregated accounts
Affiliate program
Islamic accounts available
Bitcoin
Neteller
Skrill
WebMoney
Wire transfer

The choice of broker is adjusted to the needs of each trader. If you are a trader who only needs a basic platform and trading features with the best attributes, then Exness can be your best choice.

Exness covers its lack of feature variations with other advantages like low spreads starting from only 0.1 pip. This is very suitable for traders who use scalping strategies (Scalper). Spreads on major pairs in certain account types can also be as low as 0.0 pip, depending on market conditions.

Not only that, but traders can also enjoy other advantages such as an automatic fund withdrawal system. If a trader withdraws funds through the e-Payment facility provided by Exness, the processing time is instant and goes straight into the account. This means that when traders make a withdrawal, everything happens automatically without human intervention.

The safety of traders' funds is also guaranteed as Exness is one of the European-based STP/ECN brokers. Exness's ability to become an official partner of the Real Madrid soccer team for 3 years, starting July 2017, also provides evidence that the company has high solidity.

Deposits and withdrawals may be made 24 hours a day, 7 days a week. However, it is important to note that the company shall not be liable fors in processing deposits and withdrawals if suchs are caused by the payment system.

Traders do not need to worry about transaction fees when depositing and withdrawing. When trading on Exness, transaction fees are not charged to traders. A variety of payment methods are provided for traders, including Wire Transfer, Bank Card, Neteller, Skrill, and many others.

All information displayed on the Exness website is tested and proven. Their business is audited quarterly by Deloitte, which is an audit company for financial services.

Moreover, Exness is one of the mote transparent brokers in the online trading industry. Traders can find out all information about this company on the website, such as trading volume, number of active clients, client deposits, company funds, and many more.

The platforms provided by Exness vary in MetaTrader 4, MetaTrader 5, Web, and Mobile platforms. This makes it easy for traders when trading on Exness, as they can also access Exness platforms anywhere and anytime.

Over the years, Exness has developed into a broker that attracts traders. Trader's trust is further enhanced by its compliance with financial regulations like the FCA and CySEC.

One measure of client confidence can be put on the trading volume. By December 2018, their clients' monthly trading volume reached USD348.4 billion and active traders around the world surpassed 50,342.

Through the program offered by Exness, traders also have the opportunity to earn extra income by becoming their partners. From the Introducing Broker (IB) program, partners can earn up to 33% spread commission from every new client that registers with them.

Additional income can also be obtained from Exness Partners. Traders can get a spread commission of up to 25% per transaction made by traders who register through an affiliate link.

When trading with Exness, profit opportunities generated by traders also increase with VPS hosting services. This feature helps to maintain trading activities to progress smoothly and without interruption in the event of unexpected troubles such as lost internet connection or electricity problems that shut down traders' PCs unanticipatedly.

From the review above, it can be concluded that Exness is a favorite broker for traders because of low spreads and flexible account types. This condition is very suitable for traders with limited funds but is in need of more opportunities to get maximum profit. This broker is also well known for its maximum support on both new and existing partners.

 

3. LiteForex

With a minimum deposit of $50 and leverage up to 1:500, LiteForex is one of the most popular brokers for newbies. This forex broker pioneered the cent account and is also known to always keep up with the trends among retail traders. It offers interactive features, including a 3-minute registration process via Facebook, Google+, or regular email accounts. Also, LiteForex provides free deposits via any payment method through the ZERO Fees scheme which can return the deposit transfer fee to the client's account.

🌐 Website
www.liteforex.com
Leverage
1:500
💼 Regulation
CySEC
💲 Min Deposit
$50
Year Established
2005

Interest rate on funds
Bonus offers
Trading contests
Affiliate program
Islamic accounts available
Bitcoin
Neteller
QIWI
Skrill
WebMoney
Wire transfer

Regulated by the Cyprus Securities and Exchange Commission (CySEC), LiteForex is also subjected to the European Securities and Markets Authority (ESMA). However, aside from basing its operation on Cyprus, LiteForex also branched to the Marshall Islands. Here, LiteForex hasn't been regulated by any financial regulator yet and conducts its operation under the name of LiteForex Investments Limited (different from LiteForex European Limited which is regulated under CySEC).

Based on some traders' experience registering in LiteForex, the company doesn't strictly limit EU-based traders to LiteForex European Limited. Such traders can openly register under LiteForex Investments Limited that is not subjected to higher leverage restrictions issued by ESMA.

Trading assets in LiteForex range from Currency, Metals, Oil, Stock in CFD, Global Indice, as well as Cryptocurrency. More importantly, the broker provides traders with the chance of trading more than 40 large American companies' Stocks in CFDs.

With the support of both MetaTrader 4 and 5 platforms, LiteForex traders are given the freedom of trading various instruments with the most well-known technologies in trading. It is also the gateway to access an extremely wide selection of custom indicators and Expert Advisors that everyone can discuss and download in MQL4 and MQL5 sites.

ECN and Classic are the only account types offered by LiteForex. Although relatively limited, the account choices have managed to accommodate the majority of traders' needs, particularly those with early to intermediate levels of trading experience.

Interestingly, LiteForex boasts its capability of giving an annual interest for ECN traders which amounts to 2.5% of the accumulated daily free margin. As a complimentary, LiteForex also built a Social Trading system that manages to completely resemble a social media platform with special features solely based on usual trading necessities. The said platform is also easily integrated with traders' Member Area.

On the payment methods' front, LiteForex provides a lot of choices ranging from standard Bank Transfer to electronic payments like Skrill and Neteller. This broker is also known for its ongoing Zero Fees program that relieves traders from the attached fees from each method payment.

More than its commitment to ease traders' experience in terms of payment and trading, Liteforex used to be recognized as one of the first brokers initiating the innovation of Cent Account for small traders, thus the name "Lite". However, the company's focus seems to change over the years so they now choose to limit their service only to ECN and Classic traders.

Furthermore, LiteForex has been serving global retail traders since 2005, an accomplishment not many forex companies can achieve. Therefore, it can be concluded that even though LiteForex is operating as an offshore forex broker, its durability for more than 10 years serves as a reminder of retail traders' trust.

Another thing to note from this broker may come from its expansion to Asian countries and their passionate effort to penetrate the markets profoundly. Not only the language support in the official website, but LiteForex also goes beyond to maximize its commitment by providing local payments and other means specifically tailored for each country's traders.

To keep their traders engaged in more trading activities, LiteForex also holds seasonal trading contests and various kinds of promotional bonuses. Their profile in numerous review sites also indicates a relatively safe broker for retail traders.

Yet, it is important to note that LiteForex offers its service globally as LiteForex Investments Limited which hasn't been registered to any financial regulations. This may subject traders to difficulties in filing complaints and compensation claims should there be unfortunate incidents in the future.

But if we take a look at its long-standing as a comparatively experienced broker since 2005, it is quite safe to say that trading in LiteForex can be considered quite reliable, especially considering its status as an offshore brokerage.

 

4. Instaforex

InstaForex is one of the most popular forex brokers since 2009. As the name implies, InstaForex prioritizes ease of administration to instantly jump-start your trade. With a minimum deposit limit of $1 and maximum leverage of 1:1000, as well as a fixed spread from 3 pips, Instaforex earned its right on this list.

🌐 Website
www.instaforex.com
Leverage
1:1000
💼 Regulation
FSAFSC
💲 Min Deposit
$1
Year Established
2007

Interest rate on funds
Bonus offers
Trading contests
PAMM accounts
Affiliate program
Islamic accounts available
Bitcoin
Neteller
Skrill
Wire transfer

InstaForex is an international broker that provides trading services to traders globally. Since it was founded in 2007, InstaForex has provided for clients from various countries as many as 7 million traders. Based in Kaliningrad, Russia, InstaForex always attempts to improve the quality of the company in order to captivate the hearts of their clients.

Their hard work can be proven, one of which is by achieving a variety of awards, including Best Forex Cryptocurrency Trading Platform 2018 by UK Forex Awards, Best ECN Broker Asia 2018 by IBM, Forex Broker of the Year for Eastern Europe 2018 according to le Fonti Awards, Development, and Success award at Financial Olympus 2016-2017, etc.

There are 4 types of account offered by InstaForex representing a universal trading tool that help to work on international financial markets, such as Insta.Standard, Insta.Eurica, Cent.Standard, dan Cent.Eurica. Trading account types differ by the methods of accounting spreads and commissions, which are picked by the trader opening an account.

Insta.Standard account is relevant for standard trading terms on the Forex market and allows a trade to be settled with classical spread and with no fees. Traders will be charged a fixed spread every time they make a transaction. Spreads that are provided ranging from 3-7 pips. The main advantage of this type of accounts is its universality, as a trader can change the trading leverage and work with a deposit size convenient for traders.

Different from Insta.Standard accounts, Insta.Eurica accounts do not require payment of any spread on opening a deal. Therefore, this type of InstaForex account is suitable for beginner trader with a minimum transaction of 0.01 lots.

There are also other types of accounts InstaForex, namely Cent.Standard and Cent.Eurica which can be used for beginner traders because they can use the minimum transaction volume, which is 0.0001 lots (the cost per lot is USD0.1 cent). Deposit currencies that can be used by traders are EUR and USD (for all types of accounts).

Trading in InstaForex is quite a given as traders can choose to trade with leverage between 1:1 to 1:1,000. With a minimum initial deposit requirement of only USD1 (for all types of accounts), InstaForex clients have the opportunity to get a 30% to 100% deposit bonus.

Not only that, but beginner traders are also exempt from confusion in determining forex trading strategies. Because Instaforex provides ForexCopy services that allow traders to copy orders from professional traders in just a few minutes.

And then, there are around 300 trading instruments offered by InstaForex for traders. In addition to currency pairs, there are also futures, shares, gold, silver, CFDs, Bitcoin, and others.

Every InstaForex client is free to choose a trading platform that can be tailored to their needs. There are four types of trading platforms available, including InstaBinary, WebIFX, MetaTrader4, and MetaTrader5. Each platform has advantages and disadvantages. InstaForex also provides video tutorials on how to register on each platform. It aims to make it easy for beginner traders who want to join InstaForex.

If a trader still confused after seeing the video tutorials, traders can contact customer service available 24 hours connected to various social media, including email, Skype, Whatsapp, Telegram, Viber, Twitter, and Phone Call. On the InstaForex website, there are around 30 languages provided to facilitate traders from various countries.

The trader can also help themselves with trading calculators provided on the InstaForex website. Traders can accumulate currency pairs, Leverage, volume, and currency used.

The payment system in InstaForex is also diverse. Traders can pay deposits via Visa, Mastercard, Skrill, Neteller, PayCo, as well as Wire Transfer. All in all, InstaForex is a well-rounded broker for many types of traders.

 

5. FXOpen

FXOpen is a forex broker pioneering micro account and swap-free (interest-free) option. With a minimum deposit starting from $1, leverage up to 1:500, and competitive spreads, FXOpen has survived for 15 years (as of 2020) as a forex broker that novice traders should look at.

🌐 Website
fxopen.com
Leverage
1:500
💼 Regulation
ASIC CySEC FCA The Financial Commission
💲 Min Deposit
$1
Year Established
2003

Bonus offers
Trading contests
PAMM accounts
Segregated accounts
Affiliate program
Islamic accounts available
Bitcoin
FasaPay
Wire transfer

FXOpen started its operation as an online trading provider for retail clients since 2005. The company was founded by a group of traders with a mission to provide services that refer to the interests of traders. FXOpen claimed to be one of the firsts to offer ECN trading via MetaTrader 4 (MT4). With FXOpen's unique proprietary price aggregating technology, their clients can benefit from the industry's most competitive spreads (from 0 pips) and low trading commissions.

In 2006, FXOpen also became the first broker to offer a micro account and a swap-free account. After that, they continue to be the pioneers of several new and high-tech services, including the first Crypto account that can provide trading facilities on 24 Cryptocurrency pairs such as Bitcoin, Litecoin, and Ethereum.

Furthermore, the company provides One Click Trading and Level 2 MT4 plug-ins, enabling traders to place trades with just one click of the mouse. Traders do not need to worry about trading security at FXOpen. They have registered in Nevis, the UK FCA, and ASIC Australia.

A variety of trading accounts are provided such as STP, Micro, ECN, and free unlimited demo accounts. The minimum deposit for each account depends on the account type; USD1 in Micro Account, USD10 in STP and Crypto Accounts, and USD100 in ECN Accounts. As for leverage, FXOpen offers up to 1:3 (for Crypto Accounts), and up to 1:500 (for Micro, STP, and ECN Accounts).

Besides, traders can enhance their trading capabilities with Myfxbook and Zulutrade automated trading systems. Both of these services allow anyone to copy the transactions of experienced traders. Thus, traders can replicate the results of professional traders' strategies.

The FXOpen PAMM Service allows copying trades from a Master account to one or more than one Follower account and automates the distribution of profits and losses. The Master operates personal capital through a PAMM account, and his trading strategy is replicated to the Follower's capital. The owner of the Follower account can view and analyze the performance of the PAMM account with the help of advanced analytics. There are 3 PAMM accounts in FXOpen, namely STP, ECN, and Crypto PAMM.

On ECN accounts, traders will get direct price quotes from leading liquidity providers, including Dresdner, SG Paris, Standard Chartered, Barclays Capital, Bank of America, CRNX, JP Morgan, Morgan Stanley, Deutsche Bank AG, RBS, CITI, and UBS. This is one of the reasons why FXOpen's ECN account has become a trader favorite.

After seeing the various advantages offered by FXOpen, traders can easily register an account, simply by filling out the form in the registration menu on the FXOpen website. Traders will be asked to verify documents in advance if the trader will make a deposit or withdrawal of funds. Based on traders' experience and information since FXOpen was founded, there have not been any major complaints about payments (depositing or withdrawing funds) from clients.

Once registered with the FXOpen broker, traders also have the opportunity to get other benefits. One example is the FXOpen cashback program for the first 90 days from registration as a new client. The minimum cashback is USD5 and the maximum is USD1,000.

Furthermore, free VPS is available for ECN, STP, and Crypto account holders. Traders can use FXOpen VPS without any fees for 1 month if they can maintain equity of USD5,000 at the end of the month or trade with a trading volume of USD10,000,000 per month. The advantages of VPS on FXOpen are excellent accessibility, flexibility, and speed.

Trading on FXOpen is made easier because traders can add insight into trading by entering contests. FXOpen Broker offers weekly and monthly trading contests on demo accounts through the ForexCup.com site. Traders can join competitions that are free of charge to hone their skills. If a trader wants a bigger challenge, there is also a trading contest on a real account.

The company also offers Forex partnership programs to traders, Forex brokers, and website owners who publish information about fiat and crypto-currency trading. There are 3 types of partnership levels, including Forex IB (Forex Agent) that attracts new clients to FXOpen using a referral (affiliate) link, Forex Rebate, and individual partnership conditions.

In Conclusion, FXOpen is a well-rounded forex brokerage for traders with a desire to try various trading instruments, a trading environment in ECN account, low minimum deposits, the best cryptocurrency trading condition, as well as interesting trading features like PAMM and demo contests.

 

6. FBS

FBS is a forex broker that provides many account options for trading and investment needs. With flexible choices of fixed and variable spread, traders can start small with this broker to open an account with an initial deposit as low as $1.

🌐 Website
fbs.com
Leverage
1:3000
💼 Regulation
ASIC CySEC FSCAIFSCFCA
💲 Min Deposit
$1
Year Established
2009

Bonus offers
Trading contests
Free education
Affiliate program
Islamic accounts available
FasaPay
Neteller
Skrill
Wire transfer

Since 2009, the action of FBS Holding Inc. or known as FBS in the world of forex trading has been recognized by various international institutions. With clients reaching 14 million as of 2019, FBS has received the title of Most Transparent Forex Broker 2018, Best Investor Education 2017, Best Customer Service Broker Asia 2016, IB FX Program, and many others.

FBS is regulated by IFSC Belize and CySEC Cyprus. This broker has been trusted by millions of traders and 370 thousand partners from various countries. Based on their data, FBS garners about 7,000 new traders and partner accounts every day. And, 80% of the clients stay in the FBS for a long time. No wonder the broker is growing rapidly due to the incredible growth in the number of clients.

Trading products offered by FBS range from forex, CFD, precious metal, and stock. For forex trading, CySEC-regulated FBS offers leverage up to 1:30 on Cent and Standard Accounts. Clients who want to try higher leverage than that can alternatively register an account under FBS Belize.

In all types of accounts, provided spreads start from 1 pip. On a standard account, volume orders can be made from 0.01 to 500 lots. Therefore, this account is recommended for experienced traders.

Whereas on Cent Accounts, volume orders can be carried out with a maximum of 500 cent lots or the equivalent of 5 standard lots. Cent Accounts involve a different level of risk. FBS recommends Cent Accounts for beginner traders. All account types support the following trading tools: 28 currency pairs and 2 metals.

Before plunging into the real forex market, traders can practice with FBS Demo Account which consists of two types, i.e Standard and Cent.

FBS uses the MetaTrader 4 and MetaTrader 5 platforms. They offer them on Windows and Mac as well as Android and iOS mobile. These platforms provide a trading experience at traders' fingertips, allowing traders to progress as a trader anywhere at any time.

MetaTrader platforms also have a variety of mainstay features, including the possibility to create, buy, and use expert advisors (EA) and scripts, One-click trading and embedded news, technical analysis tools, the possibility to copy deals from other traders, hedging positions, and VPS service support.

Another advantage provided by FBS is a deposit bonus of 100% for clients who fulfill certain requirements. The process of depositing and withdrawing funds can be run easily and quickly. Based on clients' testimonies, each process usually takes no more than 3-4 hours, except on holidays.

To increase the security of client funds, FBS also provides segregated account where 70% of funds can be deposited in the client bank. This broker also presents something unique; a guarantee 10% to 100% of the deposit fund. If a trader loses funds during a transaction but is insured, FBS will refund the trader's funds.

Traders also have the opportunity to develop a side business when trading with FBS, namely as an Introducing Broker (IB) or Affiliate. The FBS partnership system provides partner commissions that are already in 3 level positions. Only by introducing new clients to FBS according to certain procedures, traders can earn extra income.

Traders will also get trading education experience at FBS. They have prepared a comprehensive forex course. The course consists of 4 levels: beginner, elementary, intermediate, and experienced. Traders can take courses that will turn them from newbies to professionals. All materials are well-structured. Besides, FBS provides various forex analyzes, webinars, forex news, and daily market analysis that can be accessed easily on their site.

Traders can access the FBS website with many language choices. Of course, this will increasingly provide comfort for traders. Available languages include English, Dutch, Italian, French, Portuguese, Indonesian, Spanish, and others. Live chat support is also provided 24 hours 7 days a week.

In conclusion, FBS is a widely known broker among retail traders around the world. It continually grows to become a preferred broker because of flexible trading conditions that enable its clients to trade with various instruments, low deposit, and other trading advantages.

 

7. XM Broker

Providing a micro account with a minimum deposit of $5 and competitive spread on major pairs, XM aims to present the best service for all types of traders, including the novice ones. Supported by leverage features ranging from 1:1 to 1:888, XM is also quite experienced as this broker has been established since 2009.

🌐 Website
www.xm.com
Leverage
1:888
💼 Regulation
ASIC BaFin CNMV CONSOBCySEC FCA FSPIFSCESMA
💲 Min Deposit
$5
Year Established
2009

Interest rate on funds
Bonus offers
Free education
Personal manager
Trading by telephone
Segregated accounts
Affiliate program
Islamic accounts available
Requires sending documents via postal mail
CashU
FasaPay
Neteller
QIWI
Skrill
WebMoney
Wire transfer

Established in 2009, XM is a member of an online brokerage company called Trading Point of Financial Instruments Ltd. In providing clients on a global scale, the company has branched into XM Australia and XM Global, and XM Cyprus. Each member has different headquarters and licenses, with XM Australia registered under the Australian Securities and Investment Commission (reference number: 443670), XM Global under the IFSC (60/354/TS/19), and XM Cyprus under the Cyprus Securities and Exchange Commission (reference number: 120/10).

XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.

In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.

Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip. Instead of providing maximum leverage on the scale of 1:500 or 1:1000 (round numbers), XM chooses to limit their leverage on a 1:888 scale, a unique number that is now widely recognized as XM's trademark.

To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $50. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.

For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.

XM also provides an Islamic Account for Muslim Traders obligated to Sharia Law that prohibits the use of interest generated by overnight swaps for each currency pairs. To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).

All in all, there is no doubt that XM has gone global with its deep commitment to providing trading services in more than 15 languages around the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.

For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.

Which low deposit broker is the most suitable for you? Find the answer yourself. Every successful trader is a beginner at first. The key is not to be insecure or pessimistic when you start to dive in and try forex trading with small money. Stay realistic and keep learning. With small money, of course, the profits you get will not be significant at first. The most important thing is that you know how to manage your money and entrust it to the right broker.

See also: 3 Best Methods To Improve Forex Profit Taking

 

Do This If You Want to Succeed Trading with Small Money

They say that money is not everything. Not in life, not in love, and apparently, not in forex trading too. There is an even more important factor than money that will seal the fate of a forex trader.

Risk management and emotion control also play important roles. No matter how big or small your money is, you should always trade with rational considerations and planned management.

If you trade with zero capital, you may tend to underestimate the risk. You may think that it's okay to lose big, after all, the amount lost is not your money. However, if you trade your own money, you will certainly tend to be more careful before opening positions.

This kind of psychological difference should never happen. A trader with experience should be able to address potential gains and losses in the same way, regardless of the amount of money put in the trade. The key is to use a clear risk and money management calculation, and measure the success not by how much the money is made, but how many pips of profit has been accumulated.

Risk and money management have various variations. What are they?

 

Martingale

Martingale can be interpreted as a strategy to gain a big profit from the rebound of accumulative losses. Each time the value of your money decreases, the size of the transactions made afterward will be increased. In other words, if a trader experiences a loss in a transaction with a size of 1 lot, the second transaction will be opened with a volume bigger than 1 lot. If the second transaction fails again, then the third position's volume will be doubled, and so on. Here's the example:

Martingale Strategy

The Martingale strategy only requires one win to cover all of the losses from previous trades. If it turns out to be profitable, then the profit will multiply. The risk lies in the limited amount of money that you may have, and the unpredictable market condition that makes you miscalculate the opportunity to win big. If until the sixth transaction you still fail to earn the expected profit and your equity is running low already, then you are at risk of being hit by a margin call and experiencing enormous losses.

With such conditions, you must always be careful to use the Martingale strategy. Market trends can quickly swallow the equity you have, so there needs to be a limit on the number of transactions. The Martingale system like this is the most popular and has been widely adopted by the automatic trading system.

See also: Advantages and Disadvantages of Forex Autotrading

 

Anti Martingale

This method is the opposite of the Martingale strategy. Anti Martingale means that you will not double your position when you experience losses, because additional transactions will only be made if the position is in profit. The anti-martingale method has the advantage of creating a rolling profit that gets bigger and bigger, like a snowball. The further the journey, the greater the benefits. Below is the perfect example of Anti Martingale method:

Anti Martingale Strategy

However, it is very important to limit the amount in the transaction, because the failure of one trade can result in a large loss as well. So, the risk will increase along with the profits. This will appear usually when the price consolidates or reverses. If it is not immediately anticipated, the benefits accumulated by the Anti Martingale method will be quickly reverted into losses.

See also: 3 Best Ways to Confirm Trend Continuation

Anti Martingale scenario

 

 

Cost Averaging

The easiest definition of this method is "add to a losing position". At first glance, this management method is similar to Martingale, because both of them focus on increasing the size of the trade when the previous position was losing. But in Cost Averaging Method, you do not double the number of lots traded in the second transaction and so on. In subsequent transactions, you use the same lot size continually. For more details, let's look at the table below:

Cost Averaging

Averaging does not use the principle of doubling or position doubling, so the increase in profits is not as fast as Martingale. However, the potential losses incurred are certainly smaller than that of Martingale. Cost Averaging does not aim to win from one transaction, but rather towards the accumulation of positions commonly used in medium and long term trading. This method of management is very often applied to the forex, stock, and mutual fund markets, but is not so popular in futures because of the expiration dates.

 

Pyramiding

The Pyramiding strategy is the opposite of the Cost Averaging method, as it is basically "adding when a position is profitable". Take a look at the scenario below:

Pyramiding Strategy

The logic behind this strategy is, if the market moves as expected, it is likely that a trend is continuing for some time. Therefore, additional positions need to be executed to capitalize on the potential trend continuation. This strategy can be very powerful to create substantial profits if applied successfully. If you fail, however, you will be caught in a damaging loss from several losing positions.

See also: 17 Common Trading Mistakes That Result in Great Loss

 

Fixed Fractional Position Sizing

This type of management and its variations is the method most recommended by professional traders. Whether you realize it or not, you have been using this method as a simple strategy to manage the risk. To put it simply, fixed fractional position sizing is setting a fixed position size based on a certain percentage from the total capital.

For example, let's say a trader has a capital of $10,000 and uses a portion of 5% of his capital for each position. It means he uses the fixed fractional sizing at 5 percent. He will not use more than $500 ($10,000 x 0.05) in each transaction. Based on that calculation, he will only open 1 lot when his total capital is $10,000 USD. However, if his total capital increases to 20,000 USD, then he can double the number of lots per transaction because 5% of $20,000 USD is $1,000. As an example, here is the full scenario:

Fixed Fractional Position Sizing

The higher the capital, the more lots that can be used in transactions. This strategy allocates risk according to a predetermined percentage that is ideal according to each traders' tolerance of risk and profit.

 

To successfully trade with small money is not just wishful thinking. You only need to find a good forex broker and a good money management strategy and apply it with discipline with minimum interference from emotional aspects. Just like any success in life, success in trading also is a journey to explore. Start your journey to success, learn from past mistakes and build your legacy!