Table of contents:
- 1 Minimum deposit at Plus500 at a moderate level of 100 euros
Minimum deposit at Plus500 at a moderate level of 100 euros
With every Forex and CFD broker there are numerous conditions which you as a trader should also consider in a Forex broker comparison. While some conditions are primarily interesting for professional traders, such as the maximum leverage or the number of tradable currency pairs, newcomers and beginners who have no previous experience with forex trading usually think about slightly different conditions. In Forex trading, this certainly includes, on the one hand, the minimum transaction number and, on the other hand, the minimum deposit that must be made in connection with a deposit to the trading account.
The minimum trading amount: usually stated in lots
If you are just starting to learn about forex trading and CFD trading, you will often come across terms whose meaning is not immediately obvious. Especially in the area of Forex trading, you should familiarize yourself with numerous foreign words and technical terms, such as spread, margin or even lot. Although the lot is a mathematical quantity, it is also often used as a term for a trading amount in Forex trading. Specifically, a lot refers to a number of currency units, which is often referred to as the minimum transaction amount or minimum trade size.
Minimum trading amount in EUR/USD at Plus500:
Almost every Forex and CFD broker sets this minimum trade size at their own discretion, although in practice the following three values have become established:
- Lot = 100,000 currency units
- Mini lot = 10,000 currency units
- Micro lot = 1,000 currency units
Based on this list, let’s take the mini-plumb as an example. If the Forex broker requires a minimum transaction amount from his customer for a mini-lot, this means that you must trade at least 10,000 units of the respective currency. For example, if you decide to buy US dollars and would like to sell euros in return, you must buy at least 10,000 US dollars. This minimum transaction amount of course already includes the money you get borrowed from the broker. This capital is also known as leverage. Depending on the currency pair and broker, the sums usually range between 100:1 and 400:1.
So if you want to meet the minimum transaction amount of 10,000 dollars mentioned in the example, you would only have to deposit 25 euros of your own capital with an assumed leverage of 400:1. The minimum transaction amount is therefore by far not as high as it may seem for beginners. The reason is that this minimum transaction size, in our example a mini lot, refers to the entire capital investment including the leverage that you can use with any forex broker.
Our tip: Beginners should pay attention to low minimum trading amounts!
Our tip for newcomers to forex trading is that inexperienced traders should especially prefer brokers where active trading is already possible with a comparatively low minimum trading amount. In the ideal case, it is only a micro lot, so that with a leverage of 200:1, for example, you only need to invest 5 Euros of your own capital to meet the requirements. For some beginners, a mini-lot is also acceptable, which would require 50 euros of your own capital under the same conditions.
The minimum deposit as another important condition
In addition to the minimum trading amount, the minimum deposit is also an important condition, which can be especially important for new traders and clients with little experience. The minimum deposit refers to the minimum amount that you, as a client, must deposit if you basically want to deposit capital on your trading account. However, unlike the minimum trading amount, the minimum deposit does not include the capital that is loaned to you by the broker in the form of leverage. Thus, the minimum deposit actually consists exclusively of your own capital and to a certain extent also represents a security deposit for active trading orders. This means that depending on the minimum margin required by the broker, a deposit in excess of the minimum deposit may also be relevant.
The minimum deposit or minimum deposit amount varies from broker to broker. In some cases, some Forex and CFD brokers do not even tell their clients how much capital they must deposit into their trading account. This certainly makes sense, as the conditions regarding the security deposit, i.e. the margin requirements, ensure that the customer must have a certain minimum amount of funds in his trading account before opening a position anyway. Usually, the minimum deposit is between 100 and 500 euros for those brokers who still adhere to this requirement. Particularly in the case of so-called premium accounts, there are sometimes significantly higher requirements, so that the minimum deposit in these cases can often be several thousand up to 10,000 euros.
Broker plus500 with moderate minimum deposit
The Broker plus500 does not completely waive the requirement of a minimum deposit, but with only 100 euros the minimum deposit required by the customer is at a very moderate level. For you as a new customer, this means that you will have to deposit 100 euros or more into your account before any trade order can be executed in order to meet these conditions.
Deposit methods for the minimum deposit
Broker plus500 provides several deposit methods, which are widely used by most Forex and CFD brokers today. In particular, the following methods are your personal deposit methods of choice:
- Credit cards (VISA or MasterCard)
- Debit cards
- Bank transfer
- electronic purses, especially PayPal, Skrill and GiroPay
On the positive side, the broker also allows payments via Skrill and PayPal, which is not the case with all Forex or CFD brokers.
Conclusion on the minimum deposit at plus500
The minimum deposit is certainly a big issue, as is the minimum transaction amount, especially for beginners. The Broker plus500 does not waive this minimum deposit completely, but does not deter beginners with a moderate amount of at least 100 euros. In addition, plus500 offers numerous options for deposits and withdrawals.