Can I trade forex with $100 dollars with DotBig?
How much do you need to invest to make a profit on the Forex market? This question is often asked by beginners who are just starting their path to success. In order to start trading on a micro-account, you will need a small starting amount. However, if your goal is to become an experienced trader and earn the main income from Forex trading, you will need at least $100.
Trading with an initial capital of $100 in the Forex market is a “trial version” of trading for beginners. This amount will not be enough for a huge profit, but it is enough to get basic experience of trading on a real account, learn to manage emotions and determine whether trading is suitable for you in principle.
Dreams of forex trading will become a reality
In general, when people talk about Forex, they mean a huge virtual marketplace where currencies are exchanged. It is important to note that it is not like a traditional stock exchange because Forex has no specific place to trade and is not highly regulated.
This market spans the globe with no specific location, similar to the internet, which is available almost everywhere despite having no physical address. And participants in the Forex market are involved in the exchange of currency assets. Banks, insurance companies, brokers, large international corporations and other participants are involved in this process.
The mechanism of Forex is simple, for example, you have a certain amount of dollars and you want to sell them. The currency can be exchanged for another currency that you are interested in. Other market participants do the same, which leads to the accumulation of a certain amount of dollars in the exchange office. However, there are also those who buy dollars.
If there is excess currency left, the exchange office sends it to the bank. The bank also conducts exchange transactions and, if there are excess dollars, sells them to companies, funds and other counterparties. In this way, the currency flows from the wallet of an individual to the Forex market. When you go to an exchange office, you start this process.
The Forex is a huge number of market makers who make currency transactions with each other. The volume of currency transactions confirms the enormity of the scale of this market. The daily turnover reaches approximately $5 trillion.
It is important to note that Forex is not only about currency exchange, but also about making profits from currency transactions. Traders who are involved in this business make money on the difference in exchange rates and build their strategy on buying at a low price and selling at a high price. Speaking about the possibilities of earning money on Forex, it is worth noting a few features, compared to traditional work:
- The ability to work without being tied to a schedule.
- Ability to independently determine the desired level of income.
- Complete freedom of action without being tied to a specific location.
- Possibility to start with a small amount.
How to start trading on Forex with 100 dollars on the account?
To start trading on the currency market, you should decide on the amount you are ready to invest. Experts have different views on this issue. Some believe that beginners should start with the minimum deposit they can afford — say, $50. Thanks to such small investments, the risks of losses are minimized.
However, opponents of this point of view point out that the standard lot on Forex is 100 thousand units of any currency. Having only $50 on your account and wanting to open a deal even for a tenth of the lot, you will have to use a huge leverage. And if the exchange rate does not go in your favor, you can not only stay at a loss, but also lose your initial capital.
Thus, the most preferable option to start, according to most experts, is a deposit from $300 to $1000. You should not expect huge profits in this case, but the losses will not be critical. Also take into account that brokerage companies often set a minimum deposit size. But you can try to start with $100 by joining DotBig broker.
It is worth noting that you will not be able to enter Forex without a broker. And since you will have to entrust your deposit to a broker, take the choice seriously. Take into account the track record, reviews, and the availability of a license. DotBig in this case meets all the criteria, the broker has been on the market for more than 20 years, has a license and dotbig reviews can be easily found on the Internet.
How do I get started with DotBig trading platform?
So, you have already finally convinced yourself that you are going to work with DotBig. There are a few simple steps left to start:
- Go through registration on the broker’s website. To do this, you need to enter your surname and first name, date of birth, e-mail address and phone number. It is important to carefully familiarize yourself with the terms and conditions of the contract. Don’t worry if it is required to confirm your identity. Usually this requires a scan or photocopy of your passport or other identification document.
- Open accounts. As a rule, the broker offers several options from which you can choose the most suitable one. It is important to keep your account number and password for access to your personal cabinet in a safe place.
- Refill the account. This can be done in various ways, such as bank transfer, payment systems, using credit cards and others. DotBig forex broker has a minimum deposit amount of 100 dollars.
After funding the account, you need to install the trading terminal. To do this, you should download it exclusively from the official website of the broker. As soon as you install the terminal, select the currency and you can start trading.
It is important to note that in order to make your acquaintance with the market more effective and to understand how Forex trading works, start trading with a demo account. DotBig investment platform provides such an option, this will minimize real losses to practice trading.
Final thoughts
Trading is available even if you have $100. Yes, this is a modest amount for the average person. However, the key lies not only in investing that money, but in developing a strategy that allows your investment to make a profit. If you are a beginner, experience is important. And an initial capital of $100 is great for learning. But that doesn’t mean you should rush to invest all 100 dollars at once. Trading with a small amount of money is no different from if you had thousands or even tens of thousands of dollars in your account. The main difference is the need to use leverage.
