Let’s be honest. Many of us who are interested to become Forex traders might not actually have sufficient funds to play on the big leagues. Or simply think that putting money on something we are not entirely sure about feels a lot like going to a weekend trip to Las Vegas.
Hopefully, nowadays you can set up accounts with literally whatever the change you’ve got in your pockets (not kidding). At FortFS you can open a real account with only 5 USD, I mean… it doesn’t get better than that, trust me. But the main question here is: is it worth it?
The short answer is YES. And let me quickly (because I’ve got not all day and you are not buying me a beer) to explain it to you. Opening a 5-dollar account is not so much about profits but about experience. Think about it. The logic behind it is pretty straight forward: the more cash you put it into your account, the more chances you have to make a profit.
When you set up a demo account, the deposit given by the company is usually 10.000 USD or even more. That has not been a naive decision. With that amount you are able to kick start your trading activity in a more professional and possibly successful way as you can trade larger amounts and therefore, make a bigger difference on your favour without falling into leverage.
Wow wow wow… Wait right there. Leverage is not a bad word. I know you have probably read many bloggers saying Forex is a scam and leverage is just a tool to make your losses bigger. Seriously? In 2000 the world was going to end… yeap, I thought so.
Small capital accounts work best if you are working with account types especially designed for that kind of investment. For example, a Newbie or Fort account would offer leverage up to 1:1000, which is really necessary if you want to get something out of those 5 USD. On the contrary, working with a 1:100 of a PRO account would possibly make no real change for you.
Suggestions For Small-Cap Traders
Be conservative
Use that little amount of money to learn. Stop pretending you are Gordon Gekko and focus on making things right for your portfolio, follow up everyday, stay informed, be consistent, be smart, improve your strategy every time you see an opportunity.
Be wise
Set up profit taking / stop loss positions always. Follow the 1 percent risk rule. Do not hold on to bad positions expecting a magic bounce. Do not trade against the market. Ride the trend.
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