Table of contents:
- 1 The minimum deposit with the broker Admiral Markets: account model is decisive
The minimum deposit with the broker Admiral Markets: account model is decisive
The minimum deposit is one of the most important conditions, which we also always mention in our numerous Forex broker comparisons and broker reviews. Although the importance of the minimum deposit is often considered too high in practice, many traders are still interested in knowing the minimum deposit required by the broker on the trading account. Why the minimum deposit is more of a theoretical value, however, we would like to explain in our following guide. In addition, we will of course also tell you the minimum deposit required by the broker to the trading account, the amount of which depends on which trading account you choose. As Admiral Markets offers several account types, we will explain to you which minimum deposits you must make on each account type.
Why is the minimum deposit often insignificant in practice?
If you want to trade CFDs or foreign exchange through a broker, you will need a so-called trading account in the first step. This trading account ensures that with the trading interface you use a platform where you can manage your account and of course place orders. After registration with the broker and the account has been opened, there is only one more step to the first trading order. This consists of you depositing money into the trading account. This is necessary because the settlement of the purchased currencies or CFDs cannot be done using the normal current account as a reference account. In order to understand why the minimum deposit in many cases arises automatically when you trade via the Forex Broker, you must also know that there is always a minimum transaction amount, especially when trading foreign exchange. Admiral Markets is of course no exception.
This minimum transaction amount, also known as the minimum trading amount, is based on the fact that certain minimum turnovers should be generated in foreign exchange trading. The foreign exchange market has its minimum volumes per transaction for almost every currency pair, although these are also set by the broker himself. For example, the minimum transaction volumes range from a micro lot (1,000 currency units) to a lot (100,000 currency units), depending on the broker. If you take the example of the minimum transaction amount of one lot, i.e. 100,000 currency units, this results in a capital investment that varies between 200 and 1,000 euros, depending on the leverage. We would like to give a short example of this:
Example of leverage and margin:
- Minimum transaction amount: 100,000 currency units
- Currency: US dollar
- Lever: 200:1
- Margin: 0.5 percent
- Capital required: 500 Euro
- General minimum deposit: 200 Euro
In this case, you can see very clearly that although the broker requires a general minimum deposit of 200 Euros, due to the minimum transaction amount and the margin estimated by the broker, he must make a deposit of at least 500 Euros anyway in order to be able to trade the US dollar in this case. This or similar is the case with many tradable positions, so the general minimum deposit is usually even less than the amount the trader must have available to trade a certain position on the trading account.
Since Admiral Markets offers leverage between 1:25 and 1:500 depending on the account type, you can calculate yourself how much capital you should actually deposit into your account.
In addition, experienced and professional traders in particular usually have several thousand euros in their trading account anyway, so that they can act quickly and do not have to make a deposit to the account first. In general, the amount of the minimum deposit required by the broker often depends on which of the offered trading accounts the customer uses. For example, there are basic accounts where brokers only require a small minimum deposit of 100 or 200 euros. Sometimes the minimum deposit is even waived completely in this case. For other customers, on the other hand, which are often offered under the name of premium accounts, the minimum deposits often amount to 1,000, 5,000 or even 10,000 euros. However, these accounts are usually only used by professional traders, whose deposits would be in the four or five-digit Euro range anyway.
Minimum deposit with the broker Admiral Markets is based on the account model
With regard to the minimum deposit, the aforementioned fact applies to the Broker Admiral Markets, namely that the amount of the deposit depends on which of the three account models offered is used by the client. The Broker Admiral Markets is one of the providers that offer a choice in this area, namely the following three account types:
- Admiral Markets
These trading accounts differ not only in how many trading instruments are available and how high spreads and leverage are, but also in the minimum deposit required by the broker. For example, if you choose the classic Admiral.Markets account as your basic account, you only need to make a minimum deposit of 200 euros. The minimum deposit is considerably higher with the Admiral.Prime account, where it is 1,000 euros. This also applies to the Admiral.MT5 account, where the trader has to deposit at least 1,000 Euros into his trading account.
In this context, the minimum order size, which we have previously referred to as minimum transaction amount or minimum trading amount, is certainly also interesting for many traders. At Broker Admiral Markets this is only 0.01 lot for all three account variants, i.e. a so-called micro lot. With a leverage of 200:1, the trader only needs to have 50 euros in his account to meet the required minimum transaction size. In this case, 50 euros would be sufficient more often, but due to the required minimum deposit of 200 euros, the customer must deposit four times the amount of capital into his account with the broker Admiral Markets.
Minimum deposit of 1,000 Euro only for professional traders
At this point we would like to go into more detail about the aforementioned minimum deposit of 1,000 Euros, which is only applicable if you choose either an Admiral.Prime account or an Admiral.MT5 account. These two account variants are especially chosen by professional traders, who usually have much higher trading amounts in play anyway than beginners and new clients. Therefore, as a trader who may just be starting to trade currency pairs and CFDs, you don’t have to worry about the fact that you may not be able or want to meet the minimum deposit required by the broker. After all, with the Admiral.Markets Basic Account you have an account model at your disposal which has completely sufficient functions and features and where the minimum deposit is only 200 Euros. In most cases, only professional traders will choose one of the higher value accounts anyway. However, these customers usually have no problem at all with a minimum deposit that is in the lower four-digit Euro range.
Conclusion on the minimum deposit with Admiral Markets
The minimum deposit with the broker Admiral Markets is graded according to the account model chosen, which is not untypical for Forex and CFD brokers. With the basic account you start with a minimum deposit of 200 euros. Only the higher value accounts, namely Admiral.Prime and Admiral MT5, require a higher minimum deposit of 1,000 Euros. However, as these accounts are often used by professional traders with significantly more capital invested anyway, this higher minimum deposit is usually not a problem at all.