Table of contents:
- 1 The minimum deposit is only interesting for trading on a low budget
The minimum deposit is one of the conditions that we mention in every broker test. For many customers, it is important that they do not necessarily have to make higher three- or even four-digit amounts as a minimum deposit immediately before using a broker for the first time, but instead attach great importance to a relatively low minimum deposit.
The broker FxPro is rather in the average range here, whereby a minimum deposit of currently $100 is recommended. Apparently, this is only a recommendation, which does not necessarily mean that the customer must also adhere to this exemplary minimum deposit.
The minimum deposit is only interesting for trading on a low budget
You may remember back to the time when you first started trading CFDs or Forex. At that time you will probably have searched for the right Forex and CFD broker and in this context, you will have used the opportunity to compare the conditions of the providers. You may even have deliberately chosen the broker who demanded a comparatively low minimum deposit. Many customers still feel the same way today, namely that they use the minimum deposit required by the broker as an important decision criterion.
In principle, it is understandable that people want to test the broker first and do not want to entrust him directly with $ 1,000 or more. This is certainly the case for many potential clients at FxPro. Therefore, the minimum deposit still plays a more important role today, so most Forex and CFD brokers choose this condition with care.
Why do traders need to fund a minimum amount?
Many traders ask the legitimate question of why brokers require a minimum deposit in the first place. In principle, the providers could actually not care whether the customer deposits 50, 500, or 5,000 dollars into his trading account. The brokers themselves often justify the minimum deposit by saying that one would like to avoid particularly small deposits to the trading account.
The reason is simply that each deposit involves a certain amount of time and administration on the part of the broker, which would not be worthwhile for deposits of 15 or 20 USD, for example. That is why there are very few brokers who do not require a minimum deposit at all, as this would seem to have a negative impact on the profitability of the business model.
The reason that the minimum deposit would be required for the customer to have enough money to trade is rather irrelevant. On the one hand, the minimum deposit required by many brokers is in any case less than the amount that the customer would have to have available on his account for foreign exchange trading due to the minimum trading amount to be fulfilled. On the other hand, it is ultimately up to each customer to ensure that his account has a sufficient amount with which he can subsequently place an order.
How high is the minimum deposit on average?
As is the case with many conditions, there are also major differences between providers with regard to the minimum deposit required. In the ideal case, the Forex or CFD broker does not set any minimum deposit at all, so it would be sufficient for the customer to deposit only one dollar to his trading account. However, this amount is extremely impractical, as one euro will of course never be enough to meet the required minimum trading amount.
As a result, in the vast majority of cases, the minimum deposit is automatic anyway if you wish to trade actively via the broker. Many brokers therefore also demand a comparatively low minimum deposit, which can range between 100 and 200 USD, for example. Since the broker FxPro recommends a minimum deposit of $1000 USD, it is already in the middle range. Especially for premium trading accounts, the minimum deposit can even reach into the five-digit range.
The minimum trading amount at a glance
Especially if you want to trade with foreign currencies, you must trade certain volumes as a minimum. In many areas, the minimum trading amount is one lot, i.e. 100,000 units of the respective currency. How high the minimum deposit on your trading account would have to be anyway, regardless of any required minimum deposit, we would like to illustrate with the following example:
- Minimum transaction volume: 1 lot (100,000 currency units)
- Leverage of the broker: 200:1
- Own capital investment: 500 USD
- Minimum deposit with the broker: 500 USD
In this case, you can see very clearly that the minimum deposit required by the Forex broker is exactly the amount you would have to have in your trading account anyway if you wanted to place an order. If the broker would not provide leverage of 200:1, but only 100:1, for example, you would even have to spend 1,000 euros of your own capital if you wanted to trade at least the necessary 100,000 currency units. In this case, the given recommendation for a minimum deposit of 500 USD would not be sufficient at all, but you would need more money on your trading account.
Broker FxPro recommends a minimum deposit of 1000 USD
If you check the website of the broker FXPro to find out what is the minimum deposit required on the trading account, you will quickly come across an amount of $1000. However, there is one small peculiarity regarding this minimum deposit requirement, namely that it does not seem to be a strict requirement.
The broker writes on his website that the recommended minimum deposit is $1000. Of course, “recommended” is not necessarily the same as “mandatory”, so it is probably possible to make a lower minimum deposit after consulting customer service. However, you should contact the staff to avoid any possible misunderstandings regarding the minimum deposit to be made to your trading account in advance.
Conclusion: The minimum deposit is $100
The minimum deposit required by the broker FXPro is not a strict instruction or demand, but a recommendation instead. The recommended minimum deposit of $1000 USD is in our opinion very close to reality, especially if you want to trade with foreign exchange. In fact, when trading foreign exchange, there is often a minimum transaction volume of 100,000 currency units, so with a leverage of up to 200:1, you would need at least 500 USD in your trading account anyway to have an order executed.
Although some brokers require a lower minimum deposit of 100 or 200 USD, in practice this would often not be enough to provide sufficient margin anyway. Consequently, the recommended minimum deposit of the broker FxPro is not one of the lowest on the market, but it is still practical and at 500 USD it is definitely not unrealistically high.
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