How much money do I need to start forex trading

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This is one of most popular questions about Forex trading – how much money is enough to start trading. I will try to answer this as good as I can.

Remember, you can open trading account with as little as 100$ (or even less in some cases). Is it enough to trade? Technically, yes. With that money, you can place trades if broker has nano or micro lots in his offer. So there you go, 100$ is enough to trade forex.

But is it enough if you are serious about trading? No.

No, you won’t earn big $ in a year, starting with 300$. Few hundred bucks are ok for start in learning process. You can play with that money, make some mistakes, learn new things, grow as a young trader.

When you learn how to trade, use money you can afford to lose. That is very important. Never trade with money you can’t lose. This is brutal game. Save some money for your trading account.

People see all that adverts, read about leverage and think that they do not need that much capital. That is a huge mistake.
Trading full time is different. You need solid capital because with that capital you can make profits. So how much do you need?

Depends from trader, but 10,000$ is a minimum in my opinion. Optimal amount for start is in range 10,000 – 50,000$. The amount is strongly connected to your trading system (how you handle risk level, do you trade short term or long term, and many other things).

When you follow, the path described above (demo -> real with small capital and micro/nano) and you can make money, you will be able to count how much money you need to think about going full time.

I like the quote from Alexander Elder. He said that you can start thinking about trading as full time career when you make more money in a month from trading then from your day job. Simple as that.

Remember that you need capital for start because you must follow some risk ratio rules (defined by you). You can follow rule to not risk 1% or 0.5% capital at current time. Try to use that in real money trading and you will understand quickly why you need all that money for start.

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