Minimum investment

e_abrams

Active Trader
Dec 11, 2020
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Oh yes, I forgot about cent accounts - that's what brokers that allow trading with tiny deposits are often called. It is a good way of practicing, a great next step after a demo account, but it is indeed not much for making profit.
I agree. Still, it's an excellent learning tool which in on itself is a step toward making a profit.
 
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Flophouse

Newbie
Mar 22, 2022
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It is important for determining the position size before placing an order. This allows traders to calculate risks, profits and minimise the risks.
Lower the position size, lower is the risk.
 

e_abrams

Active Trader
Dec 11, 2020
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I think the important caveat here is the position size proportionate to the size of one's account.
 

BritneyHolden

Newbie
Mar 28, 2022
27
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Minimum investment is the best option for beginners to start trading live. They can prefer trading on either cent or micro accounts. This will not only help them to adapt to the live trading environment but also help in developing trading psychology.
 

e_abrams

Active Trader
Dec 11, 2020
451
31
39
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I agree. I think the best thing to do is to use a demo account, then a micro account, then increase the investment once you gain real confidence.