Forex trading is attractive to many people, but many do not make the step forward from reading educational materials to real-money trading account. And the reason is related to the lack of initial trading capital. Actually, forex brokers used to have a much higher threshold of the minimum deposit to start trading in the past, and it was exceeding the level of $5K and even higher. That’s a meaningful amount for an average internet user, which is tough to allocate from the family budget. However, thanks to the technological breakthrough, that level has been lowered significantly. Nowadays, many brokerage companies require only $100 to open a real account and start trading.

It would seem that even people with limited financial possibilities had finally gotten an opportunity to trade and make money on the Forex market as $100 is quite an affordable amount. Although, beginners started to doubt whether it is possible to make money with such a small trading account or not.

Choosing a broker

If you’re tight with funds or just want to avoid investing large amounts on the first stage of discovering financial markets, then a proper broker selection is essential. The choice will affect initial deposit volume and whether you will have a chance to withdraw possible profits in the future. You should consider the following tips when choosing a brokerage company to trade with:

 

● Presence of micro-accounts. If a broker is keen on a long-term partnership with the client, planning to help and support its customers and contribute to the revelation of investor’s potential, then micro-account is a must-have offer.

● License. A broker without the license to perform trading activities in the financial market cannot guarantee consumers’ right implementation. If a trader had some tensions with the broker, he always could address the regulator to get support and resolve those issues.

● Broker’s fees and commissions. That’s a crucial moment for traders with limited funds as if commissions exceed reasonable values, then a trader with minimal deposit would not get benefits of trading and withdraw profits from that broker.

● Educational materials. It’s important to trade correctly, avoid mistakes and use a conservative style as every miss lowers small accounts’ capabilities. If a broker is able to support clients by teaching and providing free educational materials, then the company would be interested in traders’ success. Using knowledge and understanding the theory on practice is also impacts the result at the end of the day, so the broker should advise and consult beginners, helping to make profitable decisions.

What are FinmaxFX’s strengths when trading on a small account?

According to the criteria presented for the brokers’ selection, the following list of advantages shows why it is better to trade with FinmaxFX broker, having a small account:

● The minimum account available with the broker is Micro. Clients can top up the account with an amount as small as $100, while the contract trading volume of one standard lot is $100,000. Traders have access to 400 financial instruments to trade on this account including currency pairs, shares, commodities and cryptocurrencies. The account currencies are US dollar, Euro and Russian Roubles.

● FinmaxFX registered at the Financial Services Centre in St. Vincent & the Grenadines with the operational license to provide brokerage services. That confirms that the company is regulated and reliable.

● FinmaxFX has one of the most narrow range in spreads for the vast majority of financial instruments. Micro accounts use the spread for majors at the level starting from 3 pips, while withdrawal fees depend on payment method chosen and could reach 0.9% approximately. Clients can top up their accounts without any charges.

● Ne customers opening micro accounts with the initial deposit of $100 can get a 30% welcome bonus. Although bonus funds cannot be withdrawn, that capital can be used to increase the account’s flexibility and lift profits. Another support comes from the leverage as FinmaxFX provides liquidity with additional leverage varying from 10:1 to 200:1.

● FinmaxFX has a unique education centre, which has been developed for beginners in order to support them. It includes traders’ vocabulary with special terms and explanations, useful video lessons and a whole library of learning materials to read. Exploring those materials will help traders to gain the required experience and knowledge level in the foreign exchange market to increase the efficiency of trading and get more profits.

Once a trader is able to analyse the current market situation and make a correct trading decision, it is possible to grow the trading account quickly, multiplying the balance by several times. At the same time, it’s crucial to stick to a trading system or strategy and execute money management rules thoroughly. One of the main rules says that a maximum affordable trading volume is 5% of the overall account balance for one single trading position. Accounts with equity $100 should consider trading with minimal lots. Of course, the potential profit would not be too large, but the primary target is to keep the lowest risk possible in trading decisions, growing the account slowly but surely.

Here is an example which confirms that it’s possible to trade even with the lowest initial amount. The FinmaxFX trading terminal offers a wide choice of trading volume for every asset. We take the GBP/USD as a basic currency pair to trade. We open the trading terminal MT5 and pick trading volume in the order, which is 0.01 lot.

 

Choosing active

 

Then we click BUY, and the screen shows a new position opened.

 

Order completed

 

After that, we need to wait for the exchange rate to grow and close the deal manually with a profit of $1.29.

 

Meta Trader 5

 

Of course, that’s not a huge amount, but every single dollar brings you closer to the target of making money in the financial markets and getting financial independence. This example clearly shows that trading on the lowest account balance is possible with FinmaxFX broker.

TRADE ON FINMAXFX

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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