What is a good deposit amount for someone low-income?

Hi, I work as an AmeriCorps member at a non-profit. I don't make very much money because I am a VISTA. I was thinking about depositing $500 in the future once I am comfortable with all of the demo trading and have had considerable success. I am getting better and more knowledgeable on trading Forex. I don't plan on entering in with real money until a few months later from now.

I have read on babypips.com that a good deposit is $10,000 and someone who is low-income should not enter in at all. Do I really need to start with that much? I understand it accounts for the risk involved when working with margin trading and higher leverage. But after understanding a little more about margin trading and trading with high leverage, it sounds hella risky and I probably won't be doing such things.

I have heard of people entering in with a deposit of $500 and that sounds much more feasible with my income. Please let me know if that is okay to do. Also, I plan on using Darwinex because I read it is good on another thread. Is it still relevant? Is it good for beginners?

Thanks in advance!

Forex | 👁 1152 | Posted 2018-03-09 | Share on Facebook | Twitter | Google+

| Modified: 2018-03-09 | Author:


deeronjepsuhn 3 years ago

Nevermind, I figured it out.

deeronjepsuhn 3 years ago

Kind of unnecessary to tell me to "forget trading" like I am never going to make more money in my life and am stuck at poverty levels. I'm just an employed volunteer, I won't always be one forever. I should be making pretty good money without trading in 1-2 years from now.

deeronjepsuhn 3 years ago

So you're turning a $100 initial deposit to $1000? That's how I thought it works... Why is lasemoco saying I would only make $25 then with $500? I appreciate everyone's help but I'm still a little confused.

deeronjepsuhn 3 years ago

I have a question, and don't want to make a new thread. I am using Oanda now and I like it a lot, except the fact my demo account balance is not changing despite me making orders and closing them with profit or losses. My P/L remains unchanged, and there doesn't seem to be any changes made to my balance. It's like it's 'stuck' at my initial deposit. Does that make sense? Can someone PLEASE help me. :(

lasemoco 3 years ago

Low income people should not be trading. That includes you. What are you going to trade $500 and make 5% a month?.... congrats you made a whole $25.... Putting all the time and energy it takes to become good at trading... into some other skill would pay off much better. Forget trading.

ooogleemooglee 3 years ago

$500 as trading capital is not enough. You will be levered pretty high where one huge move in price can blow your account. If that doesn't happen, you will be slowly eaten alive by transaction costs. I'd recommend opening a demo account and asking the broker to set your starting capital to $500 so you can simulate what could happen.

iwantwetburritos 3 years ago

It's up to you how much you're willing to risk. If you're beginner, try to learn as much as you can before depositing. Then start off with a demo account or maybe just $50 and trade micro lots. I'm 99% sure you're going to lose your money so why not just start with 1/10.This way if you blow up your account you still have $450 more. Learn from your mistakes and try again. As for high leverage it doesn't matter really. You're still in charge of your position size. Whether it's a mini lot @ 50:1 leverage or mini lot @ 500:1 leverage still the same trade. The only difference is the amount of capital you need to put up to open your position. It's only dangerous to amateurs who go YOLO and risk it all in 1 trade. Me personally, I like using high leverage brokers. I deposit $100 every time I get paid and run it to $1000 and cash out. I don't always make money, but I'm confident I can do it at least 3/26 a year to break even. I'm 1/3 this year so far :D

deeronjepsuhn 3 years ago

Oanda has an appealing interface. Thank you for suggesting it.

[deleted] 3 years ago

Use oanda as you can use money management. The amount doesn't matter if you are trying to build the investment. What matters is if your strategy / money management is profitable.

abrasivebourbon 3 years ago

Leverage is as risky as you want it to be. All it does is allow you to control more units with a smaller capital, but you are still the one choosing how much to invest on any given trade. Leverage allows you to invest more on a single trade, and its only risk is your greed. There is nothing inherently dangerous about leverage if you follow a strict risk management plan.

deeronjepsuhn 3 years ago

Thank you for all the helpful information. For the first part, are you saying something like: $500 could be doubled, but it would like 2 to 4 times as long and like a 75% profit rate on returns (success at making trades)? I'm just trying to be realistic and your comments are helpful. Yes I am American, I had a feeling Darwinex isn't US territory. Thank you for letting me know. In the recommended time to practice (6m-1y), I should be getting a better job. I'm slighty anxious about trading with real money, but I am way more anxious on learning and being more successful. I have never gambled, but a new follower on Instagram had pics of charts, and told me about Fedex when I pm'ed him. I have felt compelled by gut instinct that this could be a good journey for me. I guess we will see. Thanks again!

El_Huachinango 3 years ago

So: You can deposit as little as you want with a broker like Oanda. What is your goal? Its not realistic to think that that $500 is going to produce anything more than pocket cash for you, and that's if you are good. Yes, having 10K would be better than $500. Feasible with your income? Only you can decide that. I can say from experience that having a good income from a well paying professional job that also allowed free time to assess the market made trading far easier than when I had barely any money and no time. You'll have to assess. Babypips is making the 10K statement because, as with all investment/trading vehicles, it is easier to make money with money. There are multiple reasons why. Darwinex - If you are a US citizen (assumption of mine because you are AmeriCorps) you can't use Darwinex. You are trapped with two brokers, Oanda and Gain.

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