Can I start trading with as little as $100? – This question is mostly heard among people who are interested in Forex trading but couldn’t afford to put in a huge amount of capital. This is actually a common scenario among first-time retail traders. Unlike huge financial institutions that can afford to invest huge amounts of capital, small retail traders are on a tight budget and can only afford a small amount for investment on their MetaTrader 5 account.
The answer to the question above is YES. With all the Forex brokers out there offering very little minimums, you will surely find yourself trading in no time. But then, there’s a difference between the things that you SHOULD do and the things that you CAN do. This doesn’t just apply in trading but in your life as a whole.
Forex Trading With As Little As $100
Forex brokers are offering this kind of investment setup which is called a micro account. This offers a great advantage among retail traders who want to open an account with as little as $100 or lower. To respond to the call of people, Forex brokers even reduced the micro account into a smaller one called ‘nano’ accounts. For people with limited funds but want to start trading right away, this seems to be the most appropriate solution.
But no matter how appealing it is, remember that Forex brokers aren’t your friend and they will never be, no matter how good their offers are. All they want is for you to open an account and take the risk of trading on small accounts. They want you to deposit funds, the reason for the creation of nano and micro-accounts. This gives Forex brokers a chance to broaden their fields by including those individuals who cannot fund a regular trading account.
Unfortunately, it is the broker who gets benefited and not you as a trader who thinks that you hit the jackpot after joining the financial market just with a small deposit.
Forex Lot Size
There are four types of Lot Sizes in Forex trading which include Standard, Mini, Micro, and Nano. Standard has 100,000 units; Mini has 10,000 units; Micro has 1,000 units and Nano has 100 units.
Opening a standard account lets you trade on mini and micro-lots since they are smaller ones. However, this rule doesn’t apply if you trade using micro-lots and nano lots. But generally speaking, since you can open small lot sizes that are as little as 1 pip which equals $0.0, it becomes totally possible to start trading with $100.
It is possible to trade with as little as $100 but you cannot expect to get huge returns out of it. What are the odds of turning your $100 investment into $100,000? The chance is very slim. The fact is, being new to trading, it is even hard to turn your $5,000 into $100,000, how much more than the $100 investment that you had. That is just close to impossible. The point here is to not expect too much if you have invested a little amount to start trading. Be content if you get a profit of $4. Sooner, if you take on more experience, use the right trading platform like MetaTrader 5, you can start trading in bigger lots and gain the amount of profit you deserve.