How much capital needed to trade Forex?
With XM Group you can open accounts from $5, forex company recommended on our site.
Often, among many FOREX trading companies that require deposit of $ 100, $ 500 or more, XM Group can limit the risk at the cheapest deposit fees in the FOREX market.
How to deposit?
To deposit money to a FOREX trading company in addition to credit cards, you can use either a debit card or bank transfer.
It is more convenient to deposit by Visa Debit.
Similar to paying by credit card, It is possible to pay with savings account in a bank account, which anyone can do right away without being checked on their income or occupation.
Furthermore, debit cards differ from credit cards because it does not incur high interest, so they can reduce the risk.
In Vietnam, you can register a card at any major bank.
How much capital is needed?
For actual trading you need to calculate the amount of currency units needed to trade.
For example, “selling 10,000 currency units". It’s called currency unit. Currency unit is the currency of that country.
In FOREX, usually one pair is displayed with two opposite currencies, like “EUR/USD", “AUD/USD", “USD/JPY." This is called “currency pair". The left is the base currency.
In the EUR/USD case, EUR1=◯◯ USD
In the AUD/USD case, AUD1=◯◯ USD
In the USD/JPY case, USD1=◯◯JPY
If you exchange (trade) 10,000 EUR in a bank where the bank does not have enough EUR 10,000, it can not be exchanged. Such a large sum is not easy to prepare.
However, withFOREX you can use capital hundred times as much as what you have by using leverage.
For example, if you use leverage 600 times, you can trade 10,000EUR with the formula of 10,000EUR ÷ 600=17EUR.
How much profit can you make?
Screenshot of real trading sample
Let’s take an example in the case of a transaction with 10,000 currency.
According to the trading example, by selling 10000 units of EUR/USD at 1.16000 and buying at 1.152000 (approved trading)you can improve profitability.
$1.16000-$1.15200=$0.008
0.008×10,000 units=$80
The currency pair EUR / USD above is explained as an example but of course you can also trade with other major currencies such as JPY or AUD, GBP …