How is the capital needed to start forex?

I like the DwainUK and UlliC put it- nice.

Cheers.

Hello,

1k , start trading with 1k as if you were trading with 10 million, keep stric money mangement rules, and keep the trading simple

Some require around $10 for classic acc. for ecn from $500 to $1K would be optimal for newbies...
For experts it'll be around $25k if we talk about ib , but I think it's understandable why

I see, you mentioned here minimum deposit positions of two brokers! But, it’s not a good choice! Even, there have so many brokers who accept only 1$, but that doesn’t mean, you can start your trading with only1$! Traders need to start their trading capital in order to their own capacity; there is no rule,but healthy trading capital is always helpful!

Well, my 1st live trading balance was 1K. I basically tried to test my emotions and greed into the live trading market! Yes, before starting my live trading I practiced demo account for 1 year! I made my trading plan and strategy on my demo account.

When you first start out live trading I highly suggest you start with a small amount.
I personally started with 5.000$, some choose 100$, Some 1.000$.
In the end the amount you start with if up to what you're comfortable with but it shouldn't be everything you have.

When traders first go live they usually or at least 95% (Maybe even more) of traders end up losing money.
Why do they lose money? Well there's a lot of factors that play a part in that but the most common ones are greed (trying to force trades for example) or psychology. (Not sticking to your trading plan)

In the end I recommend to use an amount that is significant enough to you so you get the emotions in forex trading and that way you can learn to deal with those emotions.
I also recommend to increase the amount you're trading over time if you are doing well.
Now "Doing well" doesn't mean just being profitable, it means sticking to your trading plan AND being profitable over a considerable time period.

Now if your question is "How much capital do I need to make a living?" that's an entirely different answer and it all depends on you as a trader.
You need to figure out how much you earn on average per month in a percentage and also how much you need to live and grow your account at the same time.

So lets say you make 3% a month and you need 1.500$ to live monthly.
You'd need a capital size of at least 50.000$ to get 1.500$ and that only covers your living costs.
Now these profits won't be as consistent as you may think. You might have a month where you make 5% and then one where you make 1% so you also need to manage your money properly that way.


I hope that answers your question a bit....

As I just finished typing this I realized that someone brought this thread back from the dead (sigh) but I will post it anyway in the hope that it may help someone.

According to me, new traders may start their live trading with a small amount of money (obviously less than 1K), because almost all of new traders start their live trading with a huge loss. So, they should avoid a healthy trading balance.

I agree with your opinion. Yeah for first time trader they should trade with small amount of money because they are going to lose it. No worries, everyone even myself blow up my account the first time we trade. Only after 1 or 2 years in trading with a bit of skill and knowledge also wisdom in trading, yeah maybe you can start with $100 bucks and above.

When you talking about capital and account size,why you don't mention a leverage?
Isn't it important part of trading strategy and money management?