Forex trading with $100: is it a myth or a reality?
There is a common idea among young traders that they can start forex trading with little money and become millionaires in just a few weeks. We tell you that this is highly unlikely. Because in fact, research shows that 97% of forex traders fail to succeed, and 85% of them give up and quit after several attempts of continuous failure. And we will check with you today in our article about the truth of that.
Start Forex Trading with $100: Myth or Reality?
Does this mean that no one can trade forex without a bank account of at least $1000? Is it not possible to increase a forex account from $100 to millions, maybe not in a matter of weeks, but it can happen in years? Is it possible to at least start forex trading with $100? We have the answers for you. Let's get started!
Here is another article that you may find useful: What are the benefits of trading forex with a $100 account?
Can I start forex trading with $100?
The answer to this question is simple: Yes, you can do that. But be aware that your forex broker has a big role in this.
Trade forex with $100: it all depends on your broker
There are a very large number of forex brokers currently. Many of them offer you four types of forex accounts: Standard, Mini, Micro, and Nano. Each of these accounts has a maximum amount that can be traded.
An ideal forex trading, you should not allow your account with its lower units to happen to trade lots of higher unit accounts. Because this allows you as an account holder with small funds to keep your account for a longer period. For this reason, nano and micro accounts are often reserved for accounts with small funds only.
Lot Number of Tradable Units
But you are not in the perfect world of forex trading, and some forex brokers give you the opportunity to pay your lots in the amount you want, without focusing on your account type. Some of them even allow to start forex trading with $10 or Forex trading with $100 on a forex account with a standard contract.
And if you take it seriously enough, you will discover that Forex brokers have a minimum deposit of $1.
Imagine, my friend, that trading a standard forex contract of EUR/USD on a $100 account, and one pip equals $10. The trader will only have to lose 10 pips before his account reaches zero. And all this in just one deal.
Feature of Forex trading with $100
Start trading without any money
The main advantage of Forex trading with $100, There is a limit that a trader can learn by using the risk-free demo forex trading accounts. Since an individual does not like to risk their actual money, their emotions may not influence their decisions in their trading trades much.
However, it is very easy for a trader to deceive themselves into believing that their emotions are under their control until they start trading real money. That is why we advise our fellow retail traders to start with deposit accounts with small amounts before investing a large amount of money in Forex.
Negatives .Forex trading with $100
Here are some of the challenges you may face when starting Forex trading with $100
There is a small possibility of error. It is a small account that will not make many mistakes before running out of credit.
The small amount trader is highly prone to psychological errors. Imagine, my friend, the psychological pressure you will face, when you know that after only two deals your account will be blown up. It would be very easy to make hasty and irrational decisions this way.
There is a limit to the assets that can be traded. A novice trader can trade the low margin forex markets with small deposit accounts. It will not be able to trade other assets, including exotic currency pairs.
So, is it possible to start Forex trading with $100? Yes it is possible. But the most important is how the choice will start for you. For more information about forex trading education, follow us.