Micro-accounts now start at $1—but realistically you need $300 to $400 even to trade 1k lots in FOREX mini-accounts (10k lots) are $1,000 to $3,000 and standard accounts (100k lots) typically begin at $5,000. ECNs tend to have higher minimums. This is a far cry from the days in the commodity futures markets where $5,000 was considered a mini-account and $25,000 was the standard. In FOREX the ability to set your own lot sizes and leverage make smaller accounts justifiable. Account size, leverage, and lot size should all work in harmony and be consistent; your broker-dealer monitors such parameters carefully in an effort to protect both parties.
The new NFA minimum margin requirements may impact minimum account sizes.
TIP: Your grubstake should be at least the equivalent of 30 trade losses and initial margin for a single trade. If you risk $50 per trade (50 pips on a mini-lot), you should have a $1,600 account. How much you risk per trade is determined by money-management parameters.
The new NFA minimum margin requirements may impact minimum account sizes.
TIP: Your grubstake should be at least the equivalent of 30 trade losses and initial margin for a single trade. If you risk $50 per trade (50 pips on a mini-lot), you should have a $1,600 account. How much you risk per trade is determined by money-management parameters.
