How much do I need to start forex trading in South Africa?
In South Africa, forex trading volume along with CFDs and spot compromise is about $2.21 billion per day in 2019, and now RAND is the 18th most traded currency worldwide. Forex trading in South Africa is emerging in such a remarkable way that you just require a minimum of 1000 ZAR or USD 10 to start forex trading.
In this article, we’ll read an in-depth review of how much money you need to start forex trading in South Africa.
The best minimum deposit is required in general.
Generally, Most Forex Brokers offer a minimum deposit amount to open an actual trading account type. Still, the minimum deposit size largely depends upon the brokers, their financial offerings, and trading market conditions.
However, forex trading with such a low initial deposit size of $1 comes with plenty of obstacles, including offering maximum leverage at your deposit size that you can open and so on. Moreover, some brokers don’t offer a minimum deposit even though they don’t allow you to make trading without first depositing into your real account.
But overall, a wide range of brokers offer the minimum deposit amount of $100, but those who don’t have minimum deposit requirements can start trading with as low as 15 RAND or $1. Don’t forget such a low starting investment comes with few withdrawals.
Deposit Size for Scalpers
Scalpers, also referred to as day traders, aim to start forex trading with a minimum deposit of $120-$240 with the broker who offers micro-lots. For the brokers who offer nano lots, the minimum deposit will be $12. If you imply such deposits, it means you won’t risk up to 0.5% of your investment as day trading includes cease losses of approx. 4-10 pips.
The minimum deposit for Position traders
Position traders should intend to initiate forex trading with the minimum deposit of at least $2500-$3750 with the brokers who come with micro-lots. And start trading with the brokers who offer nano lots with a minimum deposit of at least $250-$375.
That means while trading, you won’t risk above than 0.5% of your account, as Position traders generally require to use stop losses of about 100-150 pips which last numerous days and weeks.
The minimum deposit for effective risk management
In different trades, a rule is executed that it is best to risk only a small percentage of your account on any single trade. But in the case of forex trading, it is assumed that you will experience trading loss. Market grows with the achieving and losing specks; therefore for opting best deposit size as an effective risk management, you should evaluate the percentage of your account type.
Remark that you should aim that the risks will not be up to 0.5% of your account on any trade if you never want your account to be down more than 20%.
How much do I need to start forex trading in South Africa? This question is highly based upon the trading type you intend to do. Still, in general, you require a minimum um deposit of $100 as it is the most accessible amount for all traders without bringing them into significant risks of loss.
Forex brokers offer a place for every trader regardless of their deposit size. It is the best opportunity to start your trade with a minimum deposit of $100 that will let you open positions on leverage without experiencing high risks as you are steadily growing your portfolio.