Choose a reputable provider that allows small and large minimum deposit
Choose a reputable provider that has a low minimum deposit. So you can test the real money trading with small capital first before you want to invest with large capital. The minimum deposit with the out recommended providers is 0 – 10$.
In more than 6 years of experience, we have tested various providers and now present you with the top 3. They are characterized by low fees and good support. The trading platforms are optimal and the execution of the trades works very fast.
Account opening and the first deposit
Opening an account with an online broker is very easy. In a few minutes, you can configure an account. The broker needs some personal information from you and will ask you about your trading experience. The demo account can already be used without real money deposit.
Before you can trade real money, the online broker must verify your person. You will need to upload an identity card and proof of residence. In a few minutes to hours, the documents will be accepted and all functions will be ready for you.
The capitalization of the account usually does not cost any fees and can work in real-time. Use familiar methods: PayPal, credit card, Sofortüberweisung, bank transfer, e-wallets, cryptocurrencies. Broker support will help you immediately if you have any questions.
Facts about account opening:
- Quick and easy account opening
- The account must be verified before the first deposit is made (not always but we recommend it)
- Deposits with known payment methods in real-time are possible
- Deposits without fees
With how much seed capital does trading make sense?
Let’s be honest. With a deposit of a few Dollars, trading doesn’t make sense in our opinion. What do you expect from online trading and what are your goals? You have to ask yourself this first. From our experience, trading only makes real sense from 500$ capital or higher. Among them, our time would be too badly managed for us personally, and we could also work normally instead of a few cents on rising and falling prices.
In the beginning, it is, of course, a real advantage to invest with a few cents and this should be used by every beginner to gain the first experiences. After getting used to it, you should ask yourself what goals you want to achieve with trading.
Professional Risk Management is necessary
Professional traders use risk management of 1-2% per position in the overall portfolio. With an account of 100$, you get a risk of 1-2%. The annual returns per year are between 10% and 50% if you use sensible risk management. Of course, this is even up to the trader, who chooses his position sizes.
An investment of maybe 50$ can be suitable for testing, but you will be better off if you use more capital.
Sensitive risk management:
- For the beginning a few cents are enough for testing.
- With very small capital no sensible risk management of 1-2% is possible.
- In our opinion, trading only makes sense from 500$ on.
Conclusion: The minimum deposit is depending on the financial products
As you have learned in the article above, you need at least 0 – 10$ as starting capital for trading. It depends on the minimum deposit at the Online Broker. So traders can start trading the markets with a very small amount of capital. In addition, beginners can test the free demo account and simulate the markets.
As a trader, one should use a safe and suitable risk management, so that one does not destroy his account in a loss phase too fast. With a very small capital, it is unfortunately not possible to use meaningful risk management correctly. Therefore, in our opinion, an investment of a minimum of 500$ is necessary. Otherwise, we don’t think it’s worth the effort.
We hope that this page has given you a good insight into the possibilities of investing in the financial markets. Ultimately, every trader must decide for himself which seed capital he wants to use. There is no clear instruction here.
Good luck with trading.