Can you do forex trading with a 100?

What can you do with $100? There are going to be a lot of people who’ll tell you that well, there’s really not much that can be done with an amount that low. We’d like to tell you otherwise because when you invest as little as $100 in forex trading in Dubai, you can have a brand new source of income. Arm that $100 with good planning and an effective strategy and you would see your forex account bringing you great returns.  

Also, because $100 is not a very big figure, you may want to test out the currency market and try your luck in some trades. Even if you seem to be incurring losses, a “gamble” worth $100 would not burn a massive hole in your wallet. To be a successful forex trader, you need to come up with a well-researched creative strategy that you would stick to, irrespective of the amount you’re trading with.  

Forex Account Types and Lot Sizes

It will be helpful to know what all forex account types you can have and what should be the size of your trade. Broadly speaking, there are four types of forex accounts: 

  1. Standard Lot: Includes 100,000 units
  2. Mini Lot: Includes 10,000 units
  3. Micro Lot: Includes 1,000 units
  4. Nano Lot: Includes 100 units 

Lot

Number of Units

Standard

100,000

Mini

10,000

Micro

1,000

Nano

100

Bear in mind that when you open a standard account, you may still be able to access mini, micro and nano lots to trade but the opposite will not always be possible. This implies that it is possible to trade small lot sizes where one pip can be equal to $0.01 and thus $100 will give you the start you require.  

Choosing a Suitable Online Broker

When you go on to choose the right forex broker for you, you will come across hundreds of options online. You should try to find the one whose offers meet your financial requirements best. It would be wise to find a broker who would let you open a forex trading account, give access to a demo trading account and allow you to use the first $100 as margin.  

Starting to Trade Live

Take the time out to test your trading strategies on the demo trading account. It is a great way to find out how your bets may perform in the real forex market without actually risking your money. Once you’re confident about your forex strategy, you can start trading. Usually, reputed forex brokers will allow you to enter a trade with $100 as the minimum deposit. You might want to start with micro-lots as it’s the least risky of all options.  Another risk management tool that your broker should provide is negative balance protection where you’re not fined for having your balance below zero.  

We just can’t stress enough the importance of a good strategy when it comes to forex trading. Even if you see that your trade is not profitable, a strong strategy will help you manage the risks.

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