According to the Trader Union, a minimum deposit is the least amount to be deposited into a Forex broker’s account. A minimum Deposit means you will need an initial amount to transfer your brokerage account from your bank account to open trade.
And the minimum Deposit can be from $1 to $100,000, which usually depends on the broker you are choosing and the account traders want to open for their Trading.
However, according to the Trader Union’s report, Exness is the number one broker with a minimum deposit of $1. To know more about minimum Deposits in Forex, read the article until the end.
Factors that determine minimum Deposit
Here are some factors determining the minimum Deposit for opening a real account to start Forex trading.
Each broker offers a different amount of minimum Deposit. Firstly, do proper research about all the brokerages and their offerings with the account. If it suits your strategy, decide to deposit your hard-earned money into it.
For example, deriv real account comes with a minimum Deposit of $5. So, open a real account with the deriv only $5 and get the best out of it.
Generally, brokerage companies offer three accounts: Standard Trading Accounts, Mini Trading Accounts, and the Managed Trading account.
· Standard Trading Account
The Standard Trading Account is the one most traders choose. It offers the trader access to a standard lot of currency of $100,000, but it doesn’t mean you have to deposit $100,000 to trade. This account lets you trade full lots and gains potential perks for individual investors.
· Mini Trading Account
A mini trading account is a Forex trading account that lets you make transactions deploying mini lots. In most accounts, a mini lot equals one-tenth of a standard account. With this account, traders can trade with the lowest risk rates; therefore, beginner traders should test their strategy.
· Managed Trading Account
Managed Trading Accounts are those Forex account types in which the capital is yours, but the strategy to exchange is not. In this, the Account manager manages the account just like a stockbroker executes the Managed stock account where traders make the profit goals and risk management, and the manager tries to meet them.
Deposit fees and deposit methods
Several brokers in the market don’t charge any deposit fees, including Deriv. But they may charge other fees during currency conversion. Probably, brokerage companies offer low minimum deposits but remember it comes with low returns and various trading limitations. So make your strategy accordingly. Here are some deposit methods that most brokers offer to their clients;
- Credit card
- Web Money
- Perfect Money
- Debit card
- Bank wire transfer
- Paysafe and more
Here is the kit if currencies that are normally available on Forex brokers:
- GBP and others
A step-by-step guide to depositing the broker’s minimum amount
If you consider depositing the minimum amount to a particular broker to start your trade. Then follow the step below for depositing minimum:
1. Log in to a real account
Log into your real account by entering the email address and other password details.
2. Choose Deposit
After logging in, the dashboard will pop up on the screen, and then choose Deposit to deposit the minimum amount. Then tap on your desired available payment option in the list.
3. Enter all payment details
Enter all the required payment details, including minim deposit amount, currency, and other card details to complete the transaction process.
Is trading with a low minim deposit beneficial?
Suppose you are inexperienced in Forex and want to learn how it works. Then Forex with a minimum Deposit is the best option to test the market without risk rates. If you are professional and know everything, then it may not be a good idea as a minimum deposit limits the trader in the market.
In short, plenty of brokers offer low minimum Deposit to trade. You can select the one after researching their offerings and profit rates. But remember, although the low minimum deposit account types have lower risk rates, they must have fewer returns and certain limitations while trading.