Theoretically, it is possible to trade on Forex starting from $1. Some brokers offer such minimal deposit, but there is no sense in it. With such an amount the leverage must be huge, and the bigger it is, the easier it is to lose the deposit because of the slightest market fluctuations. The smaller is the amount of deposit, the higher is the commission charged from the trader. You cannot use scalping and pipsing strategies with such a deposit. And it is impossible to learn how to manage the capital on $1.
To have full access to all opportunities of the market, it is enough to have $10. That is the minimum deposit of many here. In this case it is still not possible to talk about large earnings, but one can learn the basics of trading and test one’s own trading strategies. Cent account, as well as demo-account is irreplaceable for beginning traders, because it allows to trade with real money, but without serious losses.
Minimal initial deposit is not always optimal for everyone. When calculating the optimal starting deposit it is necessary to take into consideration a number of factors: trading style, account type, preferred strategies, broker’s leverage, desired profit volume and acceptable losses volume. Often these factors are interrelated. So, you should choose the deposit according to your goals and abilities.
On most accounts the minimal deposit size is $100. With this sum, you can already count on a certain profit. But at the same time, the loss of these funds will be insulting, but not critical. With a deposit of $100, you can safely trade micro lots (0.01 lots) and try almost all trading strategies. It is better not to deposit more than $100 for a beginning trader. Even if you are confident and traded successfully on a demo account, the risks are great.
When you learn how to multiply your capital of $100, you can invest larger amounts, $1000 or more. The sum of $1,000 is enough for trading any instrument, it allows you to withstand drawdowns and hedge the risks of volatility on the currency market due to the trades on commodity CFDs. A good profit is approximately 10-30% per month. You can calculate your own deposit amount based on the desired profit.
Conclusion: An optimal size of initial deposit for a beginner is about $100. To really make good money on Forex, you need to invest from $1000 and more. So you need to analyze this information and make your own decision.