So you are a small forex trader finding a way to grow your trading account right? Forex is a constantly fluctuating market and in such a fluctuating market it is a bit difficult to maintain the income level. But this post will help you know some ways through which you can grow your small trading account.
So how can you grow a $10 trading account?
You can grow a $10 account fast by over leveraging, but you would still have to use micro lots at around .01 (10 cents USD) per pip. You could go for 10 pips a trade with tight stop losses that would put you at 10% return per trade starting out at $1.
Hopefully you are just doing this as an experiment and not using your last $10. You would honestly be better off demo trading until you are ready to go live with at least $500 USD. Around $1k to $5k is best to start out with because you truly see the compound affect.
Before we get into the details of starting an account with $10 lets dig into what actually is small, mini, or micro forex trading account. Here’s everything you need to know:
What Is A Small Forex Trading Account?
A small or mini trading account is the forex (foreign exchange or FX) account through which you can trade with a small lot of quantities. This kind of accounts is perfect for newbie traders or the people who are interested in entering the forex market.
If you are a risk-averse person, then you may consider entering into the forex market with a small trading account. By getting a small or mini forex trading account, your risk of losing the money would be less.
Basically, a mini trading account is the best way to enter into the forex for beginners. With the smaller lot sizes, you would have very little risk of losing money. Normally, it is advisable to use a small trading account only for learning purposes.
There are some downsides to such accounts. The main disadvantage of trading with a small forex trading account is the profit you will make will be very low. Even though you make amazing trades with your small forex trading account, the growth still will be very slow.
Anyways, if you want to grow your small forex trading account, here we have shared some of the best ways using which you can do that.
Well you can trade with a $10 forex trading account but don’t listen to us. We probably wouldn’t recommend doing so unless you are doing this as a fun little experiment especially if it is your last $10. But we have gone out to different forums and forex sites to gather information from real Forex Traders to see what they have to say about this.
We curated this information only corrected and spelling where absolutely needed. Outside of that the answers have remained the same.
Can You Start Trading Forex With Only $10?
Real Trader Opinions
1. Hans Stam (Forex Trader 1990-Present) “No You Can’t” – No You can’t.
I will save you a lot of cash right now if you hear me out.
By asking this question, I have a hunch you don’t fully understand Forex yet. Stick to demo trading for now, read my previous articles on how to develop a working strategy. Once you can show a minimum of 100 trades in a row without a loss, you are ready to place 10K and earn profits the same week already.
We don’t know each other, and I’m not trying to be arrogant or bashing, but I know this market, and I know how quick your cash can be gone thinking its all a scam. Never to return while all you needed was some preparation.
I can also tell you’re not stupid, cause you are asking questions, which is smart. Know your limits and gain wisdom by many counselors. Listen to the right voices, and learn to silence those who work against you.
Once you’ve got it down, you can start with 10K and make it big.
To give you some encouragement… I was asked by someone who blew her account, all that was left was 87 euro’s back In January this year. She now understands, and applied some wisdom. She got lucky at first to get up to 500–600 euro’s again. Now in June she is over 6,000,- and growing fast.
Its not recommendable but it worked for her so who am I to put a brake on success. I did mention a few lessons about exposure which are now starting to sink in, and I know she has a bright future ahead of her. The point of this note is… Anything is possible, but its better to know what you’re doing.
2. Madan Subba “Yes you can” – Yes, you can. You can trade micro-lots with that amount of money. 1 micro-lot = 0.01 of a lot. But why use your money when you can use free money. So I have a better idea that you can use. Instead of using your own money, get free money to start trading and use this money to make money. Here is how you can do it.
Open a real account with this broker (they are one of the biggest with over a million clients) and receive a $30 trading bonus (called ‘No Deposit Bonus’). This is free money you will receive for just opening an account. All the profit you can make using this money is yours to take.
After you have turned it into, say, $280 (or any amount you like), withdraw $250 (your profit) and deposit it back into your trading account. You will receive a 100% welcome bonus on your first deposit. Now you will have $500 of your own money to trade without having to invest any of your own money.
If you are looking for awesome bonus, then open an account with this broker and receive a bonus ranging from $200 to $10,000 on an initial deposit of $1,000 to $50,000.
3. Pan Petes “Yes you can start forex trading with $10” – Yes you can start forex trading with $10.
Its absolutely your call as to how much you want to start forex trading with. A $10 , $50 , $100 or $500 , you are free to decide that.
However, you need to check that the broker you have decided to open your account for trading forex allows you to trade with that amount or not. This is because brokers have different minimum requirements, so you need to check that out.
One suggestion that I would give you is that I get the point that you might be reluctant to start with a higher amount now since you are a beginner, but honestly $10 may not help you realize some good profit. If you expect your $10 to double or become three times, then that’s far from reality
Instead what you can do is open a demo account with some broker you have been eyeing on, and trade on it until you gain some knowledge. A demo account will give you all the idea so when you feel you ready you should start with like $50 or $100.The point is basically to learn and the best way to learn is by trading on a demo account.
Rest, I leave the decision up to you.
Wish you luck.
4. CMS Prime (Forex Broker 2002-present) “Technically yes” – Technically you can do it; there are several brokers that offer minimum deposits of $ 10.
You should also bear in mind that it is very likely that they are $ 10 thrown away, just because of inexperience on your part.
And even if you only want to start trading with $ 10, you must meet the minimum requirements of the broker.
So it will probably be more than $ 50, so the best thing would be to simply not waste your money trying your luck with your money without having experience in that market.
Also, when trading with this small amount of money, you have very limited options for trading, especially because there are minimum lot sizes that must be followed when trading is done. You should also use very high leverage and this is very unwise.
However, trading with such a small amount of money will only serve you to practice and not to produce significant money, so the best option is to simply open a demo account in which you can practice to have a notion of how the market works, since trading with so little money does not give you a real enough notion of how that environment works.
You could even open two or three Demos, that is, it’s free. You can also open different from these accounts in several brokers.
Once you find a broker with which you feel comfortable, you can proceed to open a Forex Demo trading account.
Once you have practiced enough and you are ready to start trading more money, you can proceed to open a normal account. When you are ready to open a real account, you must choose the type of Forex trading account you want: it can be a personal account or it can be a commercial account.
5. Doug Dailey (Forex Trader at tradingsmartmoney.com) “Wait until you have more money” – I would recommend waiting until you have a few hundred dollars before you open a live account. This is subject of course to your brokers minimum deposit requirement. Some Forex brokers allow you to open a live account with very little capital, in some cases $50. The more capital you have the better of course but you can start trading live with a very small initial deposit.
My advice is to trade tiny live positions at first. If you can make a net profit everyday with a tiny account you can grow that account over time and increase your trade size and start to generate a steady income. Don’t focus on the money or dollar amount focus on the pips/points you make and percentages. That is how Professional traders think.
We went through many more answers and opinions on this matter but felt these were the best and most efficient ones.
Overall around 33% of Traders Opinions were either that no you can’t start with $10 or it basically won’t be worth it but to wait until you have more capital to start up.
Around 67% said yes and to have fun with it. All you need is a broker with a minimum deposit of $10.
Ways to Grow A $10 Forex Account
If you are getting started with forex trading and you do not have any prior experience, then it is a good idea to start a $10 small forex trading account. Apart from this, if you do not have so much money to invest in forex, it is also a good idea to open a $10 forex account.
You can grow by starting your trading career with a small forex trading account. Here are some important tips that will help you grow your mini or micro forex trading account:
1. Have the right strategy
The first and important thing you need to keep in mind if you want to grow the $10 forex account is you need to have the right strategy and trading plan. As a newbie trader, if you don’t know about various trading strategies, here are they. Some popular forex trading strategies are Scalp trading, Day trading, Swing Trading, Positional trading, and high-frequency trading.
2. Keep learning
As a forex trader, you must not stop learning about the market. You should always learn new strategies and methods of trading. The important thing to keep in mind while learning from any source (it could be TV, internet, book, newspaper, or any other media) is who is teaching you. Let say, you are taking any course, first, know what’s the experience of your instructor. If you will select the wrong source for learning, you will be learning the wrong things.
3. Have a proper risk management
Just like any business, forex also consists of risk. You can’t make money from the forex if you are not willing to take some risk. The main thing is how effectively you manage the risk and make great money. Just because $10 is less amount of money, it doesn’t mean you trade blindly with it. If you want to grow your trading account with $10, then make sure you manage the risk just like you would be doing it with big money.
4. Don’t think about recovering losses
Most of the new traders end up losing more money when they excessively start trading with the intention of recovering losses. Trading just with the intention of recovering the losses means emotional trading. With this approach, you will be losing the money in your account very quickly. In order to grow your micro account, make sure you do not trade for recovering losses.
5. Research, Research, Research
To win the forex game, you need to be ready to spend long hours working on your computer screen. Research is the most important part of forex trading. If you don’t give importance to it, you will find difficulty growing your trading account. If your trade relies mostly on forex signals, the chances are you will lose your money. Because the market keeps fluctuating, you will need to spend a good enough time doing research.
6. Stop overtrading
Overtrading or trading addiction will not allow you to grow your trading addiction. Overtrading reduces the efficiency of trading. Newbie forex traders often get trading addiction, which results in huge losses. Instead of trading too much, you should start focusing on doing proper research and making a proper strategy for trading.
7. Maintain consistency
In order to grow your $10 forex account and start making good enough money from it, you need to maintain consistency with your trade. Consistency is the only way to grow in forex. So, make sure you spend consistent time doing research, looking at charts, and doing forex trading.
8. Focus on trading rather than making money
Most of the traders enter into the forex market with the intention of making quick money, but this is not the right approach. In order to succeed in forex and grow the account, you need to focus on your trading plan & strategy rather than making money. When you will implement the right strategies, the money will automatically start coming your way.
9. Analyze your records
Now another important thing you need to take a look at is analyzing your track records. After spending enough time doing forex trading, you need to check out your previous track record and analyze which trading strategy helps you in growing and which trading strategy got failed. Tracking the forex trade helps you stay in the discipline.
Major Reasons Why Forex Traders Fail
There are many reasons behind the failure of forex traders. Here are some major reasons why traders fail. This will give you an idea about what things you should avoid.
1. No trading discipline
Lack of trading discipline is one of the main reasons why most of the forex traders fail. The successful forex traders you see, they maintain a proper trading discipline and implement their strategy with discipline.
2. Not having proper knowledge
Having no or very little knowledge of the market can be dangerous. If you are a newbie trader, you should solely focus on learning more and more about the market. Make sure the source you select for learning is proper.
3. No trading plan
Are you trading without a plan? Yes? Then you are probably going to face losses. Trading with no plan is the major mistake trader often make. In the trading plan, you need to include things like risk management, ROI, etc.
So here we have shared some points by implementing which you can grow your $10 forex account. Just because the money amount is low, it doesn’t mean you don’t pay enough attention. Growing a mini forex account may take some time.
But, if you have finally decided to grow your $10 account, you should create your trading plan and focus on trading rather than making money. Here we have also shared three major mistakes to avoid to succeed in forex.