Minimum Deposit Brokers

Forex Brokers with a Minimum Deposit

“All fingers are not equal.” This is a popular saying we have all heard at one point in time or the other. In the same vein, even though all human beings are created equally, circumstances differ and not everyone can muster the same level of finances to engage in certain projects.

This is especially true when it comes to forex trading. There are traders who hold positions in billions of dollars (e.g. George Soros) and there are those who can only muster a few hundred dollars at a time. I have even met a forex trader who was only able to muster $100 for trading, which is an amount some other people I know use for two shots of tequila in my country; a classical case of different strokes for different folks.

However, it was the need to accommodate all categories of market players, especially those who find it difficult to come up with plenty of cash to trade, that minimum-deposit forex brokers came on stream. There are also broker-related reasons for the advent of this category of brokers. Some brokers operate a business model where they have few high net-worth investors who can bring in large volumes of cash, while others operate a large customer base that brings in smaller individual volumes of cash. The net effect is the same, which is why some brokers adopt the second model of business by allowing those at the very rung of the financial ladder to bring in their little drops of water to form a mighty ocean.

So who are the minimum-deposit brokers? These are brokers who allow between $10 and $500 as minimum account capital requirement to trade forex on their platforms. Many brokers that attend to the high and mighty in society have begun to realize that they can also make money attending to traders who do not have so much, and are now beginning to create departments to attend to this group. So it is not a surprise to see some brokers who offer $50,000 VIP accounts, also offering micro accounts of $200. Most market maker brokers now operate multiple account types and allow traders to choose which category they want to belong to.

Now traders who want to trade minimum-deposit accounts have to be aware of some issues they will contend with.

1)    What is the minimum contract size allowed for your minimum deposit? This is a very relevant question because while some minimum deposit forex brokers like Alpari provide micro-lots for their $200 minimum deposit accounts, some others only allow minimum contracts of one mini-lot. It is very difficult to trade minimum deposit accounts in mini-lots; two successive bad trades will put the account in great jeopardy.

2)    Are bonuses allowed? If they are, please by all means, claim them. This will boost your account’s ability to take on draw-downs and larger trades. Avafx has at one time given bonuses of between $150 and $200 for a $300 minimum deposit account. Please study the terms and conditions accompanying the bonuses.

3)    What is the pricing integrity of the broker? Are they “stop hunters”? Do they allow the use of robots? Do they permit scalping? These are questions that you need to have the answers to before you start trading.

If you have satisfactory answers to these questions, then you can start.

Here is a list of minimum-deposit brokers. This is not a recommendation list. Do your due diligence before trading with anyone of them. The information is just to let you know that these guys exist!

What we can recommend however is Plus500. Even though this broker is listed with $100 minimum deposit and there are brokers that require less capital – it offers a great combination of professional trading platform and appreciates all risk-averse traders with a 100% free demo account. Overall, the CFD broker Plus500 is our recommended choice and in case you have not signed up there…

… you should click this link and sign up to Plus500.com and get started at this CFD broker!

Risk warning: 77% of retail CFD accounts lose money.

$100 to $500 Minimum Deposit Brokers

 

$10 to $50 Minimum Deposit Brokers

 

There are some brokers that even allow traders to open accounts with as low as $5. But we do not recommend using them, so they are excluded from this discussion.