HERE ARE YOUR CHOICES WHEN YOU WANT TO START SMALL
Forex Brokers With $5 Minimum Deposit
The forex market has an average daily trading volume of $6.6 trillion. This massive trading volume makes the forex market very attractive to both retail and institutional traders. There are so many retail traders that must trade through a broker. Every broker will have a minimum amount that must be deposited by a trader in order to live trade the forex market. Sometimes, a broker’s minimum trading deposit could be $100 or even $500. In most African countries, a trader may not be able to easily spare $100 to fund one live trading account. Fortunately, there are regulated brokers in South Africa that has a very small minimum trading deposit for forex traders which could be as low as $5, $10, or even $1.
Should You Trade Forex With a $5 Account?
It is a good idea to test out the forex market with a small live trading account before adding more trading capital in the future. In this case, a $5 trading account could be very beneficial but your potential profit is limited due to the small account size. Also, on a $5 account, it is hard to implement a proper risk management plan. Professional traders usually aim to risk only a small percentage (about 1-3%) of their account on every trade.
Also, it is a good trading practice to always set a stop loss which is usually measured in pips and the minimum lot size with most brokers is a micro lot, wherein each pip is worth approximately 10 cents. With a $5 account, it is nearly impossible to place a trade that the risk (value of stop loss zone) is worth only a small percentage of the total account value. In simple terms, $5 may be too small a trading capital to implement proper money management. Additionally, many brokers offer for a higher first deposit amount pro accounts which are featuring smaller fees and more convenient trading conditions.
Forex Brokers With A $5 Minimum Deposit
XM.com is a popular broker that operates across different countries including South Africa. This broker is regulated by CySEC in Cyprus, and ASIC in Australia, and also operates in South Africa via an entity licensed by the IFSC in Belize. South African traders can trade with a zar account with XM.com and spreads are fairly tight starting from as low as 0.6 pips. Also, XM.com allows traders to use popular trading platforms like MT4 and MT5. Traders in South Africa have access to trade 55 forex pairs including some ZAR pairs like the USD/ZAR and EUR/ZAR. XM.com also has a no-deposit bonus of 347 ZAR that it offers to new clients in South Africa. Though you can not withdraw this bonus, you can definitely withdraw all profits made while trading this bonus capital.
XM.com is the only trustworthy broker with a minimum deposit of $5 that we could find. Though, there are others with minimum deposits as low as $1 and $10.
Forex Brokers With A $0-10 Minimum Deposit
Exness has a minimum deposit of $10 which is still an affordable amount for a trading account. As a reputable international broker, Exness is regulated in South Africa by the FSCA, in the United Kingdom by the FCA, and in Cyprus by the CySEC. Spreads start from as low as 0.3 pips. There are over 160 trading instruments available to South African traders. These financial instruments range from forex, stocks, indices, cryptocurrencies, and commodities.
Exness allows South African traders access to 107 forex pairs including 9 currency pairs with the South African rand. These zar pairs are CHF/ZAR, AUD/ZAR, DKK/ZAR, EUR/ZAR, ZAR/JPY, GBP/ZAR, TRY/ZAR, USD/ZAR, and NZD/ZAR. South African traders can trade the forex market with popular trading platforms like MT4 and MT5. Also, Exness has both standard and professional accounts. The minimum deposit on the standard accounts starts from $10 while professional accounts which have even better trading conditions have minimum deposits starting from $200.
XTB has a minimum deposit as low as $1 which is an attractive offer to South African traders. This broker is regulated by the FSCA in South Africa, CySEC in Cyprus, and FCA in the UK. Spreads with XTB start from as low as 0.5 pips. There is access to trade over 1500 instruments, 57 of which are forex pairs including major, minor and exotic pairs. With so many forex pairs, you are very likely to find your favorite currency pair including zar pairs like the GBP/ZAR, USD/ZAR, and EUR/ZAR.
XTB has its own trading platform called xStation5 which can be used by both beginner and experienced traders. Apart from spreads, commissions are another trading cost that many brokers charge traders. With XTB you are not charged commission fees when trading forex, indices, and commodities. Apart from forex, XTB allows South African traders to trade other financial instruments like CFDs on stocks, commodities, indices, cryptocurrencies, and EFTs.
Benefits Of A Minimum Trading Deposit As Low As $5
The minimum amount you can start trading with will vary across different forex brokers. Most reputable and regulated forex brokers are usually transparent about this and will display the information on their websites. Fortunately, traders in South Africa have access to regulated brokers that offer minimum trading deposits as low as $5, $10, and even $1. In this article, we have stated XM as a reputable broker with a $5 minimum trading deposit. Also, XTB and Exness have a minimum deposit of $1 and $10 respectively.
There are quite a number of brokers in South Africa with low minimum deposits. From our research, XTB and Pepperstone are at the forefront of fair brokers in South Africa with an incredibly low minimum trading deposit of $0. However, if you wish to follow proper risk management and risk only a small percentage of your trading account per trade, you will most likely need an initial trading capital that is worth more than $1 or even $5.
The forex broker you choose to trade with will greatly impact your trading career. It is great to always trade with regulated brokers but many times traders have more specific trading needs that go beyond a broker’s regulatory status. A very common need of traders is to have access to a regulated broker with a small trading deposit of as low as $5, $10, or even $1. Traders in South Africa are fortunate to have regulated brokers that have trading account types with very small minimum deposits.
It is important to note that forex trading is risky and it is advisable to acquire appropriate trading knowledge and apply proper risk management in order to avoid massive losses in the forex market. It is also advisable that you conduct your own independent research on a broker before you decide to trade live capital with them. Also, feel free to demo trade with your chosen broker before investing live money with them.