newbie

[traderuniversity]

Hi all, I'm new to this forum and may be my question have been asked before.
What's the minimum account size to start trading forex? I will be trading only 1% of my account per trade
where's the best place to get started such as trading platform and brokers

Any comments appreciated

 

[Rhody Trader]

Effectively, there's no minimum. Oanda, for example, has no predefined or minimum trades sizes, so you can literally trade a single USD, EUR, JPY, etc. That means you can trade with only a few quid in your account.

 

[traderuniversity]

Thanks Rhody
what's Oanda by the way? is it a brokerage firm? if so how can I get access to them?

 

[tomorton]

Hi all, I'm new to this forum and may be my question have been asked before.
What's the minimum account size to start trading forex? I will be trading only 1% of my account per trade
where's the best place to get started such as trading platform and brokers

Any comments appreciated

I'm guessing you mean only 'risking' 1% of your account, rather than 'trading' 1%. So that if you were fortunate enough to have a starting account of £100,000, regardless of the portion you might have exposed to the market in a particular position, your stop-loss would be placed where you would exit at a loss of no more than £1,000.
I am possibly being pedantic, but money management for new starters is key to staying alive, not big wins.

 

[Rhody Trader]

what's Oanda by the way? is it a brokerage firm? if so how can I get access to them?

http://fxtrade.oanda.com/

 

[traderuniversity]

http://fxtrade.oanda.com/

It makes sense now. It's obvious that I won't be trading forex for a while, because my account size is very small to start with. (£2,000). 1% risk = £20, I would easily be stoped out of the trade risking such a small amount per trade, as forex can swing up or down way ahead of my stop loss.

Thanks for the repplies Rhody Trader

much appreciated and good trading

 

[Masquerade]

It makes sense now. It's obvious that I won't be trading forex for a while, because my account size is very small to start with. (£2,000). 1% risk = £20, I would easily be stoped out of the trade risking such a small amount per trade, as forex can swing up or down way ahead of my stop loss.

Why? It depends on what risk you take per point. If you risk £20 and do 5p/pip it will have a very different outcome to using £20 and 50p/pip.

 

[traderuniversity]

Why? It depends on what risk you take per point. If you risk £20 and do 5p/pip it will have a very different outcome to using £20 and 50p/pip.

Absolutelly right, so I can trade less per pip, but by doing so won't I be braking my 1% risk per trade?, I heard that forex can oscilate as much as 200pips in a move. betting 50p per point (I suppose this is the minimum allowed for trading currencies), would still surpasse my 1% risk per trade

does it all make sense? or may be am still confused about it

 

[Masquerade]

You can trade 1p/pip on Oanda if you wanted I imagine. Nothing forces you to do 50p/pip. It depends on your style and what sort of pips you're going for. You can risk 1% on 10 pips or 1% on 300 pips.

 

[Rhody Trader]

With Oanda you could actually risk very small fractional amounts per pip. A micro lot (1000 units) of EUR/USD has a pip value of $0.10. With Oanda you could trade even smaller amounts. At 100 units the pip value is $0.01. Oanda will let you go all the way down to 1 unit ($0.0001/pip).