Table of contents:
Some trading conditions are important for both new and existing clients, especially when comparing Forex and CFD brokers. One of the standard conditions, which are not only mentioned in a pure comparison of conditions, but also in most reviews, is the so-called minimum deposit. This is often referred to as the minimum deposit or minimum amount that must be deposited into the trading account.
There are sometimes considerable differences if you look at the minimum deposits demanded in detail by the numerous brokers. Therefore, it makes sense to take a closer look at the minimum deposit required by the individual brokers. This is particularly advisable if you, as a new client, do not wish to immediately deposit several hundred or even 1,000 USD or more into the trading account.
These are the minimum deposits that can occur when funding money:
- 50 to 500 USD depending on the countries
- 200 USD for trading stocks (the most countries)
What minimum deposits do the providers require?
This question can only be answered to a limited extent because it is actually the case that Forex and CFD brokers require minimum deposits, some of which differ quite considerably from each other. There are now even some providers in this trading segment who do not require a minimum deposit at all. In this case, the customer is not forced to choose an amount of at least 200 USD for a deposit, for example. However, these providers are still in the minority, and more and more experts believe that this trend towards extremely low or no minimum deposit will continue.
In addition to these providers, there are numerous Forex and CFD brokers who are in the moderate to medium range with their required minimum deposit. In this case, we are talking about sums that are usually between 100 and 300 USD. The third group of brokers requires relatively high minimum deposits, often above 500 USD. However, it is often the case that the higher minimum deposits only apply to special account models. For example, more and more Forex and CFD brokers are offering so-called VIP or Premium trading accounts, where the minimum deposit is often in the mid-four-digit range or even around 10,000 USD.
In many cases, the amount of the minimum deposit, therefore, depends on which account-model you choose with the respective broker. Therefore, even for experienced and professional traders, it is not important at what level the broker has set the minimum deposit, as they often deposit several thousand euros into their trading account anyway. However, the level of the required minimum deposit is much more decisive for new clients who might want to get to know the broker first. As a result, these clients are often not willing to immediately deposit 500 USD or more into their trading account.
The minimum deposit with eToro broker
One thing first: The broker eToro is not one of those providers that completely forgo a minimum deposit. However, the lowest minimum deposit the broker asks its clients to make is a moderate $50. In this context, however, you should note that this minimum deposit of $50 only applies to certain deposit methods. However, these are again by far the most payment methods offered by the broker. Only if you choose to deposit by bank transfer or if you are a resident of Australia or New Zealand, the minimum deposit required is $500. For all other payment methods, the minimum deposit amount required is the aforementioned $50.
eToro offers its customers a variety of deposit and withdrawal options. Below we’ll give you a brief insight into the options customers have for making payments with eToro.
Deposit methods and limits at eToro:
The minimum deposit is of course only a trading condition, which you should consider when comparing brokers. Whether the minimum deposit is relevant at all depends primarily on how much capital you provide as the first deposit to your trading account. If it is a medium to the high triple-digit amount, 90 percent of all Forex and CFD brokers will consider you in this regard anyway.
In fact, most brokers are below 500 USD with their required minimum deposit – at least for the basic accounts. The broker eToro shows as a good example that the minimum deposit amount sometimes depends not only on the chosen account-model but also on the deposit method. However, in this case, it’s usually the case that you’ll find different alternatives with the brokers. Often there is at least one deposit method for which the usual minimum deposit applies.
Other trading conditions that you should not neglect are the eToro spreads, the minimum transaction amount (micro lot, mini lot and lot) and of course the currency pairs that the broker offers for trading.
Extract from the spreads at eToro:
|Euro/US Dollar||EUR/USD||3 Pips|
|Australian Dollar/Swiss Franc||AUD/CHF||4 Pips|
|Australian Dollar/Canadian Dollar||AUD/CAD||4 Pips|
|Australian Dollar/New Zealand Dollar||AUD/NZD||4 Pips|
|British Pound/US Dollar||GBP/USD||4 Pips|
|New Zealand Dollar/US Dollar||NZD/USD||5 Pips|
|US Dollar/Canadian Dollar||USD/CAD||3 Pips|
|US Dollar/Japanese Yen||USD/JPY||2 Pips|
|US Dollar/Swiss Franc||USD/CHF||3 Pips|
|Australian Dollar/US Dollar||AUD/USD||4 Pips|
|Euro/British Pound||EUR/GBP||4 Pips|
|Euro/Swiss Franc||EUR/CHF||5 Pips|
|Euro/Japanese Yen||EUR/JPY||4 Pips|
Here in particular, significant differences between the providers are still noticeable. While one forex broker, for example, offers only 25 currency pairs, other competitors sometimes allow you to trade over 100 or even more than 200 currency pairs. Such differences are not unusual and often contribute more to the decision for or against a provider than is the case with the minimum deposit.
Comparison points outside the trading conditions
For most traders, the trading conditions play a minor role anyway, because when comparing the providers, the most important thing is the performance and services of the provider. Thus, for example, the following comparison points are of greater importance for traders:
- Trading platform
- Demo account
- Customer Service
- Continuing education offer
For this very reason, we recommend that you do not limit yourself to a comparison of the conditions, but take advantage of the opportunity that our reviews offer you free of charge. Through a detailed field report, you will get to know considerably more key data and characteristics of each broker than the pure trading conditions. In the reviews, for example, detailed information on the service is published, as well as on the trading platform, customer service, and, for example, on an existing training area. Thus you can get a very comprehensive and detailed picture of each broker, especially with a video, without neglecting the equally important trading conditions.
Conclusion on the minimum deposit with eToro
With a minimum deposit of $50, the broker eToro is within an average range. Apart from the deposit via bank transfer, the minimum deposit of $50 applies to all other deposit methods. So in conclusion, the decision to use the broker eToro shouldn’t normally fail because of the required minimum deposit as it is relatively moderate. However, you should be aware that every withdrawal with eToro will cost a fee depending on the amount of the withdrawal. This fee ranges from $5 to $25 per withdrawal.
Read our other articles about eToro: