It is common to associate Forex trading with huge sums of money. There are stories of people making outrageous profits of five to seven-digit numbers, depositing and withdrawing over and over again, and living their best lives. Are these stories true? Of course they are. Most people, however, believe that these extremely successful people have always been this wealthy and successful since they were born, and cannot even imagine that they could have started from scratch, without any money at all. Therefore, Forex trading has been regarded as an activity that only wealthy individuals can engage in. Forex trading was once only available to banks and powerful financiers, but that was decades ago. Technological advancements have made things very different today. We now have easy access to the Internet, as well as a more digitalized trading industry. Online trading, following global markets from anywhere, depositing and withdrawing money through multiple brokers are now possible. Consequently, the entry threshold has been lowered.
For forex today, it is not necessarily about large deposits, but more about big profits.
It can be done by anyone. Everyone can do it. In order to open an account with a broker, one needs less money than for a cup of coffee. FBS, for example, requires a $1 deposit to begin trading. Just $1! A Cent account can be opened with $1, while a Micro account can be opened for only $5.
What's the difference? It is not about depositing a large sum but getting the most out of your trade, whether it is $1 or $100. Finally, multiply it! Here are three easy-peasy steps that traders should take to multiply their initial deposits:
1. Find a broker that offers a high level of leverage
Small deposits are one of the best ways to leverage. Larger deposits provide traders with more opportunities. You can enter trades requiring larger investments even with a small deposit. But do you want to play for real money but have only $10 to deposit? If so, multiply it by thousands, and you'll have an unlimited trading account! Among the highest leverages available in the market is offered by FBS - 1:3000. In other words, if you deposit $10, you will trade as if you had $30 000. The following information pertains to three of the six accounts you can open at FBS: Micro, Standard, and Zero Spread. If you are opening a Micro account, you will only need to deposit $5. Got it? When you have such leverage, you can trade larger amounts. Make thoughtful decisions, however: larger amounts - wider responsibilities.
2. Always practice, always practice
In order to be successful and earn high profits, a trader does not need this money. Traders need skills. An investment of $1000 can quickly be lost, but an investment of $10 can turn into $1000 of profit. Feeling the market, opening and closing deals at the right time, using proper strategies, etc., are all important factors. Be open to learning and practicing regularly. Our clients have access to plenty of educational materials, such as webinars, articles, and video lessons. Discover all the tools you need to achieve amazing heights on the Forex market by exploring the Analytics & Education section of our website. Money is easier to obtain than skills, but the former leads to the latter ;)
3. Have confidence in yourself!
Even though it sounds naive, this is the first rule of every trader. I guarantee you that if you believe in yourself and do your best to get the most out of your one, five, or ten dollars, you will succeed! Therefore, you don't have to deposit a large amount of cash. The aim of the FX market is neither to gain a high profit nor to enter it. Simply pick a broker carefully, brush up on your trading skills, and stay confident. Best of luck!