Table of contents:
- 1 Important comparison points at a glance
If you decide to use a Forex or CFDs broker, you will find a large number of different providers on the market. In this segment alone, there are now well over 50 brokers offering their services. Therefore, it is especially important for newcomers to gather as much information as possible about the broker and to find the provider that best suits you with a detailed Forex broker comparison. In this context, it is important to get to know first of all the comparison points that are important when choosing a broker.
The first question that comes in mind when opening an account at a new broker is how much money needs to be deposited. The minimum deposit with ActivTrades is $100.
Important comparison points at a glance
A broker comparison can be made in several ways, such as using a comparison calculator, which is not recommended as the sole means of comparison due to its limitation to the respective conditions. Very helpful, however, are trader ratings, which you can also find on our website. These are independent and objective reports on the broker’s valuation and experience. The reports show advantages, but also some disadvantages of the respective providers.
So that you know what to look out for in reviews and other comparisons, it is of course an advantage if you know at least the basic characteristics and features of the offer and thus know what services and benefits make a good Forex and CFD broker. When making comparisons, you should therefore pay particular attention to the following points:
- Trading platform
- Customer Service
- Demo account
- Mobile commerce
- Trading conditions
- Further training opportunities
These and a few more points will help you to find the right broker for you.
The minimum deposit as an important trading condition
The category trading conditions includes several conditions that are estimated by the broker. In Forex trading, for example, these include the spreads, the leverage, or the minimum transaction amount, which is usually expressed in currency units. The trading conditions also include the minimum deposit required by the broker. This is a deposit of a certain minimum amount, which the trader must make to his trading account in any case.
Why do brokers require a minimum deposit?
A legitimate question, especially for newcomers who are just starting to trade currency pairs or CFDs, is why brokers actually require a minimum deposit. Certainly, the question often arises because it is rather unusual, for example, for online brokers who offer securities trading and also for traditional banks, that customers have to deposit a minimum amount of money into their clearing account for the securities account. For CFD and Forex brokers, on the other hand, it is perfectly normal for the broker to prescribe a minimum deposit of a certain amount.
Why many brokers require such a minimum deposit is not, in our experience, publicly communicated. Therefore, to a certain extent, one can only speculate, especially since there are some Forex and CFD brokers who do not require a minimum deposit. Quite a few experts assume that the minimum deposit is intended to make it more difficult for the customer to “say goodbye” to the broker again.
Certainly, some providers are of the opinion that without the minimum deposit there would be significantly more traders who would like to try the broker just once, but then say goodbye relatively quickly. If, on the other hand, a certain amount of own capital has to be deposited into the trading account before trading can begin, it is probably more likely that the customer will think carefully about whether or not he really wants to open an account with this broker.
With some brokers, on the other hand, the products on offer can only be traded in relatively large numbers or a higher margin must be deposited. In these cases, it would of course make no sense to finance an account with 100 USD if you have to deposit a margin of 200 USD for the smallest contract.
What are the required minimum deposits?
The minimum deposit is the same as for many other trading conditions, namely that there are sometimes significant differences between brokers. For example, some Forex and CFD brokers do not require a minimum deposit at all. It is up to the customer to decide whether to deposit, for example, 100, 1,000, or just one dollars to the trading account.
Of course, a certain amount of money must always be deposited into the trading account anyway if active trading is to take place. For CFD and Forex brokers who require a minimum deposit, the amounts vary on average between 100 and 1,000 USD. Often the amount of the minimum deposit also depends on the account model the customer chooses with the respective broker. Particularly in the case of so-called premium or VIP accounts, the minimum deposit is often set relatively high, for example at 10,000 USD.
What is the minimum deposit with the broker ActivTrades?
After you have already gathered a lot of general information on the subject of minimum deposit, you should of course ask yourself whether the broker ActivTrades also requires such a minimum deposit on the trading account and how high it is.
This question is easy to answer because, in principle, a minimum deposit of 100 dollars is required from the broker. However, this only applies to the basic trading account, because the broker still provides several account models, where the minimum deposit can be significantly higher. Nevertheless, it is of course especially important for new traders to know that they only have to deposit 100 dollars before they can actively trade via the broker. With the minimum deposit of 100 dollars, the broker is within a very moderate range compared to his competitors, if the brokers are left out, who completely waive a minimum deposit.
Which deposit methods are there?
ActivTrades offers its clients a number of ways to fund their trading account with the minimum deposit.
Deposit/withdrawal methods with ActivTrades:
- Credit / Debit Card
- Bank transfer
- Netbanx (exclusively for traders from China)
- Instant bank transfer
Conclusion on the minimum deposit
The minimum deposit is not so much for professional traders, but rather for newcomers to the field of trading in foreign exchange or CFDs. However, this trading condition should also not be overestimated, because if you want to trade actively via the broker ActivTrades, you have to deposit a certain amount of money into your trading account anyway, for example, to speculate on a foreign currency.
For example, if the minimum transaction size is 100,000 currency units, with a maximum leverage of 400:1, an amount of at least 250 dollars would have to be deposited anyway in order to meet the specified security deposit. As a result, the minimum deposit does not represent a major obstacle for the vast majority of traders, unless the required sum is in the higher three- or even four-digit range.
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