How to trade Forex with $100?
# How to trade Forex with $100?
# Is it possible to trade Forex with just $100? Are you kidding?
It seems a very ridiculous question. But actually, it must be a question from an experienced trader.
When I just started trading, I couldn't have questioned like that.
In Japan, ten years ago, most brokers were able to create an account for you to make your trade under leverage greater than 100. It's normal and simple. The minimum order size was 10000 units. So, I think, $1000 was enough to sign-up and deposit for an individual trader.
I hadn't known the rules, so I deposited much more than the least requirement.
If I knew the IB(introducing broker) rules from some tutorials in advance, I would have created a website on my own and got the commissions from my own trading. It was really a big mistake. Because I traded more than 500 lots per month. If I got $10 commissions from every lots, I should have got $5000 every month.
With the growth of Forex markets and the new rules' release, the regulations became more strict. Now the leverage can't exceed 30 in Japan and Europe.
That's why I said the question must have come from an experienced trader.
Let's calculate by a simple formula. Suppose you trade 0.1 lots(10000 units), then you need at least a fund worth $10000 / 30 = $300. So, in Japan and Europe, it's impossible to trade Forex with $100 for now.
But we still have solutions to bypass the limitation.
# Then how to trade Forex with $100?
You can choose an offshore shop with a low-leveled regulation.
In the world, there are still some countries supporting high leverages. But we don't recommend you trade there. The brokers regulated in these jurisdictions can't guarantee the security of your funds.
You may be frozen to withdraw or trade with some pros who are aiming to eat your trade positions as the counter-party.
After all, the Forex market is almost a zero-sum game. If you win, there must be a loser. And, honestly, good brokers or truthful liquidity providers would not like to accept so few funds, because it will increase their cost for management.
Even if you have a 100% ROI performance, your annual profit would be just $100, and it can change nothing.
So, my opinion is to keep far from Forex trading with $100.
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