What Deposit Is Required?
What deposit is required to trade binary options?
The arithmetic is pretty simple: the bigger is the deposit, the more money you can earn. However, everything is relative. Especially, if you are not going to withdraw the funds earned immediately and will invest in further trade. That is, in the modern sense this approach is called the capitalization of the income.
Let's look at this more precisely
On average, the minimum deposit available for trading in different brokerage companies is 200-250 USD. This is, in principle, enough for the first steps in trading binary options, but not everything is so easy.
Open any guidance on money management and read: the size of the transaction should not exceed 2% of the size of the deposit. The maximum amount is 5% (under the condition that you are trading with a strategy that you are sure of at 100%, and not only starting to sell it).
Beware, the trap!
Now look at the minimum transaction allowed in the terminal, and there, in the best case, you will see 20 USD. That is, it turns out that with a deposit of 200 USD the traders are invited to trade orders with a size of 20 USD, which does not meet the basic requirements of capital control, as in this case it will be an investment in the amount of 10% of the deposit, and it is dangerous.
How does it threaten us?
Open the transaction in the amount of 200 USD and get a loss, another deal - one more loss and you have the same situation 5 times. It is quite possible with the unpredictability of the market and even in the most profitable trading system in the world. And now, you do not have a half of the deposit...
What should you do?
When making deposits to the account consider the fact that your minimum transaction can be in the range of 2% -5% of the size of the deposit. If it is not so, then invest the larger sum. Otherwise, you will lose everything.
Do not you know how to choose a brokerage company with the most weighted levels of the minimum deposit and minimum transaction? Take advantage of our rating of brokers.
Size does matter
Of course, trading with large amounts of deposit is much more comfortable and pleasant than the minimum deposit. If you operate with a deposit of 500 USD and the minimum transaction is just 10 USD, the profitability of each transaction will be approximately 8, 5 USD, while the average daily income (if normal trading strategies), will be, in total, about 40 USD. Not much ... at the same time, these are the rules of money management without which you will lose your money in the blink of an eye, well, or a little slower, but will lose.
Now, imagine if you have 5000 USD on your account. Then, you may well be able to earn about 400 USD a day, which is very important.
Never be in a hurry
Everyone wants to become a millionaire quickly, but it is no need to rush to make a deposit of large amounts of funds for trade, especially, if you are a novice trader. Start with the minimum amount which corresponds to money management. That is, if the minimum amount of the transaction is 20 USD, then deposit 400 USD and start trading with such a small amount. Besides, it is not fundamentally important, you will reach your first million dollars in 3 or 4 years. Since, in the history there are enough cases where merchants dispersed their deposits from 200 USD to millions without investing a penny more. Trade with the mind, and then you will have enough from any amount of the initial investment (if it is certainly not ridiculous). However, always remember that the most beneficial trade begins when the deposit has at least 2,000 USD.