How much money do you need to start forex trading? What is the forex minimum deposit requirement? What are the low minimum deposit forex brokers? Those types of questions always preoccupy traders’ minds, particularly those of beginner forex traders when they choose among the vast number of forex brokers. Nevertheless, all forex traders consider minimum deposit. Certainly, each and every one of us like to deposit thousands of dollars into our forex account and start making tons of money right away. However, it is always recommended to begin with a small forex deposit so that you will not blow up your hard-earned money in seconds.

There are other benefits of starting out with low trading capital.There exist significant differences between forex brokers with respect to execution type, trading platform, number of markets, spreads and other trading fees. Low minimum deposit requirements allow you to assess those characteristics and decide if the broker is right one for you before investing large capital.

Is Forex Trading with No Minimum Deposit Possible?

There are some forex brokers who let the traders open a trading account without any initial deposit. For instance, Forex.com minimum deposit is $0. Though, you will have to fund your account in order to be able to start trading. Demo accounts could be another option to be used if you do not want to make any real deposit. Demo accounts are oftenly preferred by novice traders for gaining experience and by veteran traders for analyzing the trading conditions. However, live accounts and demo accounts provided by the very same forex broker might differ substantially in terms of trading conditions. Therefore, demo accounts could be misleading if you try to investigate the spreads and execution time.

Start Forex Trading with $1 – Which Brokers?

There are numerous forex brokers that offer forex account with only $1 initial deposit. Four of them are in my list, though I recommend Exness and FBS amongst the four. If you can not make a final decision between Exness and FBS, I advice to you go with Exness due to the tighter regulation. Once again, you will not be able to open any trades if you deposit only $1 into your forex account. Therefore, even though the minimum deposit requirement is $1, you shall deposit more in order to be able start trading forex properly.

Best Forex Brokers With Low Minimum Deposit

BrokerMin DepositRegulatorLeverageSpreadsNext Step
$0 CFTC, NFA, CIMA, FCA 50:1 Low

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$1 FCA, CySEC 2000:1 Low

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$1 CySEC, IFSC 1000:1 Medium

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Open Account

$5 CySEC, IFSC 1000:1 Low

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$5 CySEC, ASiC, IFSC 888:1 Low

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Low Forex Minimum Deposit – The Advantages

  • Experience With Low Cost

Forex trading is a serious business and it requires loads of time and effort in order to be able to become a consistently profiting trader. Forex brokers who demand low minimum deposit for opening a trading account gives you the opportunity to gain experience at the risk of lower cost. If you are a beginner trader and invest $5000 without prior trading experience, it is highly likely that you would lose your entire investment in a short time. Compare it to a forex broker with $50 minimum deposit requirement. Your risk would be only $50 which would not hurt even as close as losing $5000 in case you blow up your account.

  • Assess the Trading Conditions

It is commonly known that demo accounts are identical to live accounts in terms of trading conditions. This is false for many forex brokers. Demo accounts and live accounts are registered in different trading servers by some brokers. Therefore, they could differ with respect to spreads, execution time, slippage and leverage. Through demanding a low deposit for opening a live trading account, forex brokers could let you test the actual trading conditions.

  • Examine the Operational and Institutional Aspects

Since you will need to deposit real money into your account, you would also be able to assess the operational and institutional aspects of the broker. Forex brokers might apply various fees and require some documentation for opening a real account and funding your account. Demo accounts would never give you an idea regarding those prospects of forex brokers. Opening a live account is going to familiarize you with funding fees and speed, quality of customer services and operational efficiency of a forex broker.

What Else to Consider In Low Minimum Deposit Forex Brokers

  • Regulation

Regulation of a broker is always by far the most important criteria regardless of your account size. Choosing an unregulated broker is not a smart move since they are not subjected to obligatory requirements that would bar them for probable wrongdoings and hold them liable if they do anything illegal.

Low minimum deposit could be tempting however, I would strongly urge you to also take regulation into consideration while you are opening a live trading account. No need to be concerned, there are plenty of regulated forex brokers that provide trading services for an initial deposit as low as $1. By the way, not all unregulated brokers are fraud but you better approach a regulated one to minimize the risk of being scammed.

  • Leverage

Leverage makes it possible to trade high volumes with a low capital which effectively makes leverage very important for small deposit accounts. However, leverage is a double-edged sword and could easily wipe out your account in a matter of seconds if you are not following proper money and risk management strategy.

Imagine that you only have $50 dollars in your trading account with leverage 30:1. It would almost be impossible to trade even the micro lot size because your account could fall to margin call or stop-out level following a miniscule volatility in the market. You will not even have a chance to open more than one trade at a time. If you are going to trade less than $100 capital, I recommend at least 500:1 leverage.

  • Spreads

Low minimum deposit usually comes at the expense of higher forex spreads and trading fees. The brokers have to make some revenue in order to be able to provide you the promised trading services. A larger trading account brings more revenue compared to a smaller account. For example, client A deposits $1000, whereas client B deposits only $50. If the broker’s source of revenue relies on only spreads, client A is going to be more attractive in terms of revenue for the broker because it could trade higher volumes relative to client B.

Therefore, client B is likely to incur higher spreads for the sake of the broker’s profitability. You should make sure that the spreads are reasonable and will not eat your account up while choosing a low minimum deposit forex broker.

  • Bonus

Free money is always a good way to set up a safety net for your account against margin call and stop-out if you are particularly trading on a low capital. Forex brokers offer free bonus and promotions such as deposit bonus, recovery bonus and welcome bonus to appeal traders. Those bonuses are added to your account in the form of credit and  can be used for executing new trades.

The scale and conditions of bonuses differ across the brokers. Most of the time, the bonus can not be withdrawn and is removed from the account upon you withdraw your money. Nonetheless, some brokes offer withdrawable bonuses given that certain conditions are met. Those conditions are usually based on a specific number of trades executed or lots traded.

FOREX.COM

Forex.com is regulated by four different financial watchdogs; CFTC and NFA in the US, FCA in the UK and CIMA in Cayman Islands. Maximum value, reliability, superior trade execution, sophisticated trader tools, extensive market analysis and educational resources, professional and qualified customer support, over a decade industry experience, financial strength and strong regulation are the highlights of this reputable forex broker. Thus, I can definetely recommend to open an account and trade with Forex.com.

Regulated by: CFTC, NFA, CIMA, FCA
Minimum Deposit: $0
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Exness

Exness was founded in 2008 in Russia and has grown into one of the most popular forex brokers in Europe since then. The Company is regulated by CySEC in Cyprus and FCA in UK. The biggest strength of Exness comes in the term of wide range of account types that they offer for the clients. Traders are able to choose between six different account types which are nano account (cent account), mini account, classic account, ECN account, fixed spread account and swap-free account (Islamic account). Besides, Exness is known as one of the few forex brokers that performs transparency in its transaction operations.

Regulated by: FCA, CySEC
Minimum Deposit: $1
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FBS

FBS was founded in 2009 and regulated by both CySEC in Cyprus and IFSC in Belize. The company offers generous bonuses, useful educational material for novice traders, daily market analysis in various languages and presence in many countries. In terms of account types, FBS provides a wide range of selection for professional and beginner traders. There are six options; cent account, micro account, standard account, zero spread account, unlimited account and ECN account where spread could go below zero at the expense of $6 per lot. The 3000:1 leverage offered by FBS is the highest you could get among regulated forex brokers.

Regulated by: FCA, IFSC
Minimum Deposit: $1
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FXTM

Established in 2011, FXTM is an award-winning forex broker that offers a reliable and secure trading platform. The platform covers more than 300 instruments including forex pairs, stock indices, company shares, commodities and cryptocurrencies. FXTM is one of the most prominent forex brokers in the industry that frequently appears in media and is proud sponsor of a Formula One racing team.

Regulated by: CySEC, IFSC
Minimum Deposit: $5
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XM

Being founded in 2009, XM has the essential experience and services to provide traders a secure, state of the art and convenient trading environment. The Broker is regulated by three major watchdogs of the industry and financially very strong. I recommend XM to traders with any experience level without any hesitation. XM offers its clients 4 types of account: MICRO, STANDARD, ZERO and ULTRA LOW with low spreads. The MICRO account allows you to operate with micro lots, lower level of risk and it has minimum initial deposit of $5.

Regulated By: CySEC, IFSC, ASIC
Minimum Deposit: $5
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