How Much Do I Need to Start Trading Forex | FBS (2024)

If you want to become a Forex trader, and are trying to find out the best amount to start Forex trading, you have come to the right place. In this article, we explain the minimum amount of money you will require to trade currencies.

Trade for free on a demo account.

To begin with, remember that there are demo accounts that allow you to practice trading without investing a single dollar. The size of an FBS demo account can be up to $1 million. The demo account will allow you to practice opening orders and setting position sizes.

If you are ready to trade using a real account and make real money, you should know that the amount of money you need to start trading depends on your chosen account type.

For example, to trade on a real trading account, you must deposit at least $5. You’ll be able to open orders, the volume starting from 0.01 lots, and you’ll have amazing leverage.

Your deposit determines your trade size

The minimum trade size with FBS is 0.01 lots. A lot is a standard contract size in the currency market. It equals 100 000 units of a base currency, so 0.01 lots account for 1000 units of the base currency. If you buy 0.01 lots of EURUSD and your leverage is 1:1000, you will need $1 as a margin for the trade. If you deposited $5 on the standard account, your deposit would cover this margin, and you can open another four trades of this size.

Let’s consider some good options for a beginner trader. The examples we bring here are safe from a risk management point of view.

How much can you make with $100 on Forex?

Trading with only $100 may seem impossible. The risk for a single trade should be below 5%, no matter how big your deposit is. Let’s go with a 3% risk ($3). If you trade 0.01 lots, you can have a Stop Loss of up to 300 points – more than enough for an intraday position. The recommended risk/reward ratio is ⅓, so the potential profit for this trade will be 900 points ($9).

How much can you make with $500 on Forex?

Let’s consider the case when you’re trading with 500 dollars. With a 3% risk ($15), your trade size can be 0.15 lots. In that case, each point of profit/loss will account for $0.15. With a more significant position size, you’ll be able to earn money faster. There will be 100 points for a stop-loss. If you need a wider stop, you can trade a 0.1 lot, making each point cost $0.1. The stop-loss will be 150 points. With 5% risk ($25), you can allow a 250-point SL. The profit in that case (if your take-profit is three times bigger) will be $75.

How much can you make with $1000 on Forex?

If you are trading with $1000, you can open even bigger trades. Let’s find the optimal risk size for Forex trading with $1000. A risk of 3% for a trade ($30) and 1:1000 leverage will allow you to trade 0.3 lots with a stop-loss of 100 points. A risk of 10% ($100) will allow you to trade one lot. In this case, 300 points of profit will account for a gain of $300. The optimal risk of $30 a trade will allow you to trade 0.1 lots with an SL of 300 points. The potential growth will be $90.

Depending on the percentage of your account you want to assign for a trade, there may be different combinations and the size of stop-loss in points you need for your trade may differ. For your account’s safety, keeping the risk per trade (calculated as % of your account) at roughly the same level is recommended. As a result, you can multiply your gains in a single trade by choosing a bigger deposit.

How Much Do I Need to Start Trading Forex | FBS (1)

Another important thing to remember is margin calls and stop outs. A margin call is an allowed margin level of 40% and lower. At this point, the company is entitled but not liable to close all open positions of a client due to a lack of free margin. Stop-out is a minimum allowed level of margin (20% and lower) at which the trading program will close the client's open positions one by one to prevent further losses that lead to a negative balance (below $0).

Both the margin call and stop-out are essential for you as a trader because they keep your risks always limited. FBS provides negative balance protection to ensure that you will never find yourself in debt to the company.

If you abide by risk management rules and don’t put your entire deposit into trading action at once, you’ll be safe from margin calls and stop-outs.

The capital you need for trading

As you see, the minimum Forex trade size is $5. The rest is up to you. Estimate your knowledge and experience, and also think about your goals. How much money would you like to earn? How often will you trade? The bigger the deposit, the bigger the position size, and the more you earn from one trade. All of that should be weighed against the background of risks.

Please ensure that you spend only your spare money on trading, not the money that covers your basic life needs. Trading offers excellent opportunities to profit, but it’s risky and losses are possible.

Tips for Forex trading with small trade size:

After you read the advice on the deposit/risk balance and decide to trade, read these tips - they will help you succeed. These tips are handy for those who want to start trading with a small trade size.

  1. Good risk management is a must. Always use stop-loss and take-profit orders to control the results of your trade. Remember that the recommended risk percentage for beginners is 3% of your account on any single trade.
  2. Maintain an appropriate risk/reward ratio. Make sure the potential reward of a trade is at least equal to or greater than the potential risk. Aiming for a 1:3 or higher risk/reward ratio is a great rule of thumb
  3. Have realistic income expectations. Most likely, you won’t get rich overnight. Try to focus on making consistent profits over the long term;
  4. Avoid margin calls. If you're using leverage, be careful not to overextend yourself. Ensure you have enough margin to cover your trades and avoid margin calls.
  5. Try out the Demo account. Practicing your trading skills on the Demo account that copies the natural market environment before risking real money is good. This will help you to get a feel for the market and develop your skills.
  6. Keep learning. The Forex market is constantly changing, so staying up-to-date with the latest news and trends is important. FBS helps you do that with the Guidebook and educational articles on its website.
  7. Choose a broker that you can trust. Look for a broker that is regulated and has a good reputation in the industry. Avoid brokers with high fees or poor customer service.

By following these tips, you can enrich your approach to trading even with a small trade size. Remember to stay strongly disciplined and patient, and never risk more than you can afford to lose.

Strategy for traders with small trade size

Having a proper understanding of your actions in the market is necessary, especially when your trade size is small. Below we present the rules of a strategy with small trade size.

In the first step, decide how much time you can dedicate to trading. Remember that the busiest trading hours are usually when two sessions overlap. For example, you can consider the juncture between the London and New York trading sessions.

Secondly, you need to select the timeframes you will follow while trading. We recommend selecting three timeframes to focus on throughout the day, such as D1, H4, and H1. On the highest timeframe, you check the general trend. On H4, you check the setups and wait for the entry on H1. It’s not recommended that you hold your position for more than one day if you decide to trade with a small trade size because your trade will be susceptible to swaps.

In the third step, no matter what your account size is, you must keep your risks at 3%. As mentioned previously, this is the optimal risk size. Also, remember the risk/reward ratio (⅓ is recommended).

In the fourth step, decide what technical tools you need to implement. These can be trendlines, support and resistance levels, and technical indicators. You can also trade without them if you are familiar with price action techniques.

Finally, be sure to have clear conditions for exiting a trade. This could include reaching a certain profit level or hitting a predetermined stop-loss level. By having a clear plan for exiting a trade, you can help reduce the impact of emotions and stick to your trading strategy.


How Much Do I Need to Start Trading Forex | FBS (2)

FBS Analyst Team

More by this author

2023-11-23 • Updated

Other articles in this section

  • How to Start Forex Trading?
  • How to Make Money on Forex
  • Economic Calendar: How to Read and Use
  • How to open and close a trade in MetaTrader?
  • Forex Demo Account
  • How to determine position size?
  • Leverage and Margin: How Can You Use Them in Forex Trading?
  • What Are Rollover and Swap and How to Use Them When Trading?
  • Types of Trading Orders: Market, Limit, Stop, Trailing Stop, Stop-Limit
  • When is the Forex Market Open?
  • What Are Bid, Ask, and Spread?
  • Calculating profits
  • What are Lots, Points, and Leverage
  • How to trade?
  • Currency Pairs in Forex Trading
  • What Software Do You Need for Trading?
  • The Advantages and Risks of Trading Forex
  • What is Forex Trading?
How Much Do I Need to Start Trading Forex | FBS (2024)


How Much Do I Need to Start Trading Forex | FBS? ›

The minimum trade size with FBS

FBS is an international online broker trading in the Forex exchange market. The company was founded in 2009 and currently has over 23 million active traders across more than 150 countries, from Malaysia and Indonesia to Latin America. › blog › brokers-what-do-they-do-291
is 0.01 lots. A lot is a standard contract size in the currency market. It equals 100 000 units of a base currency, so 0.01 lots account for 1000 units of the base currency. If you buy 0.01 lots of EURUSD and your leverage is 1:1000, you will need $1 as a margin for the trade.

How much money do you need to start forex? ›

Answer - You can start trading with as little as $10 or invest more, like $100, $1,000, or even $15,000. Higher investments can potentially lead to higher profits in forex. However, it often requires substantial investments to achieve significant gains.

Is $1000 enough to start forex? ›

In conclusion, $1000 is enough to start trading Forex. However, it's important to have a realistic trading plan and manage your risk carefully. A $1000 Forex trading plan should include setting trading goals, determining risk tolerance, and choosing a suitable trading strategy.

Can I start forex with $50? ›

The truth is, it is possible to start trading forex with as little as $50. In this article, we will discuss the basics of forex trading, how to find a reputable broker, and strategies for successful trading with a small amount of capital.

How much do you need to learn forex? ›

These days, you can start trading forex with as little as $1,000 funded in a micro account, but will need significantly more capital for a standard account. Leverage from brokers can allow you to trade much larger amounts than your account balance.

Is $100 enough to start forex? ›

Overall, while it is possible to start trading forex with just $100, it is important for traders to approach it with caution and to have a solid understanding of the market and their own risk tolerance.

Is $500 enough to trade forex? ›

Yes, $500 or $1000 is enough to get involved in forex. Well, this depends on how much you're risking per trade. If you risk $1000, then you can make an average of $20,000 per year. If you risk $3000, then you can make an average of $60,000 per year.

Is it possible to grow a $10 dollar forex account? ›

To be able to grow a small or a $10 forex account easily, you need to trade in a trending market. That is because it makes it easy for you to get nice entry and exit points and also identify your potential profit targets. And that goes by the saying, the trend is your friend.

Can forex make one a millionaire? ›

It must be described in detail because it involves a lot of factors and also because, while it is possible to become a millionaire through Forex trading, some tips that come from over 12 years of trading experience must be acted upon and the time frame one must give himself.

Can a beginner make money in forex? ›

Yes, it is possible for a beginner to make money in the forex market with proper training and education, but it is not easy or guaranteed. Forex trading involves a lot of risk, and you need to have a solid understanding of the market, the trading platforms, the strategies, and the psychology involved.

Can I trade forex with $25? ›

Retail forex brokers offer minimum account deposits as low as $25, but that doesn't mean you should enter immediately! This is a capitalization mistake, which often leads to failure. Losses are part of the game, and you need to have enough capital to weather these losses.

How much can forex traders make a day? ›

On average, a forex trader can make anywhere between $500 to $2,000 per day. However, this figure can vary significantly depending on market conditions, trading strategy, and risk management techniques. Some traders may make more than $2,000 in a single day, while others may make less or even incur losses.

Can you trade forex with 20 dollars? ›

You can. However, your options will be limited, and unless you trade recklessly (which is not recommended and could set the wrong habits), your returns will be extremely limited.

Can forex be self taught? ›

With the abundance of information available online and the availability of demo accounts, it is possible to teach yourself the basics of forex trading. However, it is important to note that self-directed learning may not be the most efficient or effective way to become a successful forex trader.

Can I learn forex in 3 months? ›

The simple answer to this question would be no and there's a very important reason for that. Learning forex is an ongoing process. It doesn't take one month, two months or even one year. It's also not dependent on whether you're new to trading or an expert.

How can I teach myself forex? ›

Trading Forex for beginners summarized
  1. Learning the basics (currency pairs)
  2. Learn the software (MT4, MT5)
  3. Learn with demo accounts.
  4. Find a reliable service provider.
  5. Use the service provider's resources such as tools and guides.
  6. Read books on trading and watch videos online.
  7. Learn various trading strategies and test them.
Nov 1, 2023

How much can you make with $1000 in forex? ›

First, however, let's assume you started day trading with a capital of $1000. In your strategy, you place a maximum of 15 trades a day (too many), lose 5 and win 10. You are looking at a total of 60 pips per day. As mentioned, you make roughly $20 a day.

Can I start forex trading with 200 dollars? ›

Trading forex with a $200 budget is feasible, but it comes with its unique challenges and limitations. Effective risk management, education, and a well-structured trading strategy are key to achieving success. While your budget may be small, your potential for learning and growth as a trader is not.

Do you need $25,000 to day trade forex? ›

This rule, set by FINRA, states that any trader who executes four or more day trades within a five-day period is considered a pattern day trader (PDT). PDTs must maintain a minimum equity of $25,000 in their margin account at all times.

Top Articles
Latest Posts
Article information

Author: Chrissy Homenick

Last Updated:

Views: 5733

Rating: 4.3 / 5 (54 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Chrissy Homenick

Birthday: 2001-10-22

Address: 611 Kuhn Oval, Feltonbury, NY 02783-3818

Phone: +96619177651654

Job: Mining Representative

Hobby: amateur radio, Sculling, Knife making, Gardening, Watching movies, Gunsmithing, Video gaming

Introduction: My name is Chrissy Homenick, I am a tender, funny, determined, tender, glorious, fancy, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.