Table of contents:
- 1 Minimum deposit with Broker Lynx: professional traders preferred
Minimum deposit with Broker Lynx: professional traders preferred
Minimum deposit is one of the standard conditions that appear in every Forex broker comparison, for example. For some traders, the minimum deposit is very important, as they may be trading forex or CFDs for the first time and may not want to deposit a lot of money into their trading account with their new broker. However, especially for professional or institutional traders, the minimum deposit is often less important, because these clients usually pay four or even five-digit sums into the trading account anyway. In comparison, many Forex and CFD brokers move around with a minimum deposit of between 100 and 300 Euros. Lynx Broker is one of the brokers that require a higher minimum deposit than most other brokers from their new clients.
What is the minimum deposit in detail?
If you are new to Forex or CFD trading, you may wonder what the minimum deposit is that many brokers require from their clients. In summary, the minimum deposit, sometimes referred to as the minimum deposit, is the minimum amount of money you must deposit into your trading account. The question here is not whether you actually need and want to use this amount for trading, but the minimum deposit is simply a requirement on the part of the broker that you must meet. Whether the minimum deposit actually makes sense in practice or is simply an arbitrary specification by the broker, we will explain at another point. Lynx is no exception in this case.
Quite the contrary, since the minimum deposit at Lynx is actually relatively high compared to other brokers. To meet the minimum deposit requirement, you simply need to transfer the appropriate amount or a higher amount to your trading account. This is possible with many brokers with multiple payment methods, such as bank transfer, credit card or one of the many online payment systems available in the market today. Once this deposit has been made into your trading account, you can usually start trading immediately.
What are the required minimum deposits?
As mentioned at the beginning, there are sometimes considerable differences between brokers as to what minimum deposit is required. In the meantime, there are even some providers who do not require a minimum deposit at all. On average, the required minimum deposit ranges between 100 and 500 Euros. However, especially in the case of premium or VIP accounts offered by numerous brokers, it is quite possible that a minimum deposit in the higher four or even five-digit range of up to 10,000 euros is required. In this case, you can assume that at least this account is primarily intended for professional traders and institutional investors, as beginners will rarely deposit 5,000 or 10,000 euros into their trading account. The broker Lynx may have a similar opinion. Because with a minimum deposit of 4,000 euros, we believe that the provider is also primarily aimed at professional and institutional traders, for whom such a high minimum deposit is no problem.
What is the purpose of the minimum deposit for brokers?
A quite legitimate question, which arises in connection with the minimum deposit required by many brokers, is why many Forex and CFD brokers even demand such a minimum deposit. This question becomes even more interesting when you consider that ordinary online brokers, who mainly offer trading in securities, rarely have a minimum deposit. The broker Lynx is therefore to a certain extent an exception, even though CFD and Forex trading is of course also offered in addition to trading in securities. In our opinion, the main reason that many brokers require a minimum deposit could simply be that either the processing of the deposit would otherwise be a minus deal for the broker or that it is an attempt to increase the likelihood that the customer will actually trade actively through the broker. We find this reasoning quite plausible, because of course every trader will think carefully about whether he will simply deposit a minimum deposit of, for example, 1,000 euros “for testing purposes” into the trading account or whether he will then actually want to trade via the broker. However, the minimum deposit is usually not financially necessary from the trader’s point of view.
This is due to the fact that the minimum deposit of 100 or 200 euros required by many brokers would usually not be sufficient to meet the security deposit required for a trading position to be opened. For example, if you want to trade the classic lot, i.e. 10,000 currency units, as the minimum trading amount with a leverage of 400:1, you must have made a deposit of at least 250 euros into your trading account anyway to have the transaction executed. The minimum deposit of 100 or 200 Euros would not even be sufficient in this case, so that for active trading, higher sums often have to exist on the trading account. However, there is little point in discussing the minimum deposits of brokers, as they are required and therefore have to be met by the trader if he wants to trade actively.
4.000 Euro minimum deposit with the broker Lynx
As already mentioned several times in the guide, the broker Lynx is not content with a minimum deposit of 100 or 200 euros, but demands a significantly higher amount. Anyone wishing to open a deposit with Broker Lynx must make an initial deposit of at least 4,000 euros or the same amount converted into a foreign currency.
However, there is an alternative if the trader does not want to deposit so much money into his trading account, namely a securities transfer. If you have securities of at least 4,000 Euro equivalent in your securities account at another bank, you can transfer them to the broker Lynx and thus also meet the required minimum deposit. There is also a second type of minimum deposit, namely if traders wish to trade on a margin basis, which will be the case in most cases. In this case, the total value of the portfolio must be at least 2,000 euros. Below this amount it is not possible to use margin-based trading.
Conclusion on the minimum deposit with the broker Lynx
We have answered some questions on the subject of minimum deposits in detail in our guide. These are general questions, such as why brokers require a minimum deposit and how high this is on average. As far as the amount is concerned, the broker Lynx is one of the few exceptions. With a required minimum deposit of 4,000 euros, Broker Lynx is one of the few providers who demand a minimum deposit in the four-digit euro range. There is, however, one possible alternative, namely that the trader transfers securities with a total value of at least 4,000 euros to his securities account at Broker Lynx. Even then, the required minimum deposit is considered to be fulfilled, although the securities are not account balances.