How to start a Forex trading account

by Jack Woodstown Trading software solutions

Once you have decided to become a foreign currency trader there are going to be a few important decisions to make. You will need to choose a trustworthy broker to go with and establish what your trading goals are. These goals may vary based on the initial investment you are willing to deposit and on the ultimate purpose of your trading journey. For some it can be growing a single deposit, and for others trading will need to become a constant source of income. To better understand this let’s go over a couple of things that will play a crucial role in your Forex experience.

How much money do you need to start Forex account

First and possibly the most important question to answer is how much money do you need to start a Forex account. And there is no single answer to that. Of course, we are not talking about the minimum amount to start a Forex account that will be requested by your broker. The real question here is how much money should you invest in the beginning in order to make a visible profit. Again, depending on your capabilities and expectations this amount may vary. If you have limited funds and loads of patience you can work with as much as your minimum deposit. It is however fair to say that it will be long before you can see any noticeable changes. If you see them at all that is, since there is a certain amount of risk associated with trading.

Now when you go with slightly higher amounts, you will have an opportunity to keep your risk rate under control while still making a profit. The most optimal suggestion in this case is to start with a deposit of $2000-$3000 (or the according equivalent in your base currency). That way if you keep your risk rate at as low as 1% you will be risking approximately 20 to 30 bucks per trade. And will be able to make between 40 and 60 dollars a day. Keep in mind that this is just a rough estimate and the numbers can be significantly higher in the real life scenario.

Started trading a live Forex account

After you have made a choice on how much money to start a Forex account you need, it will be time to move on to the part of the actual trading. Take a good look around your Forex trading account and get familiar with everything it has to offer. Don’t worry if your initial decisions will not work out for your as well as you predicted. Once you started trading a live Forex account you can always make adjustments as you go. A good advice here would be to not rush it at first and really get to understand the nature of the market. It might seem unnecessary at first, but it will definitely pay off later on.