If you’ve ever compared forex brokers, you might have noticed that some companies require a large amount of money to open a trading account. Many beginners just can’t meet insanely high deposit minimums, or if they can, they would prefer to invest a smaller amount at first before jumping in headfirst. So, are you wondering if it is possible to open a trading account with only $5? The short answer is yes – but there are some important things you’ll need to know.
First, you’ll need to find a broker that offers $0 minimum entry deposits. Some brokers might offer several account types, with one option that doesn’t require a minimum deposit. Others might offer one standard account without a deposit requirement.
- If the broker offers multiple account types, then the account with the $0 deposit requirement is often an entry-level account, such as a Micro, Mini, or Cent account (but not always)
- If the broker only offers one standard account with no deposit requirement, this can be a good option that will give you the same perks as those that can afford to make larger deposits
As you can see, there are a lot of different types of brokers out there with different account setups. Each broker offers its own account type(s) and requires a specific deposit minimum for those accounts. You’re looking for options that don’t require a minimum or that set the minimum at only $5.
There are some other things you’ll need to know before choosing a broker and making a deposit. Here are some tips that can help you choose the best broker:
- Some brokers charge very high fees on their entry-level accounts. Even though you don’t have a huge amount to start with, you should still have access to average conditions. Don’t make the mistake of thinking that better options aren’t out there. Always compare options.
- You should deposit more if you can. While $5 is enough to get started, it won’t go very far. Maybe you want to try making that first trade, test out funding options, or feel the accomplishment of making a real investment into your future. This is all fine, just know that you’ll need to deposit more in the near future.
- Check for limitations on your chosen account type, as some brokers set a restrictive maximum trade size on certain entry-level accounts. You’ll want to make sure that you can deal with any restrictions.
- Look for a broker that offers some type of welcome or deposit bonus to get more out of your initial investment. Make sure that your small investment will also qualify for any such promotion as some brokers require the deposit to reach a certain minimum to become eligible.
The Bottom Line
It is entirely possible to open a trading account with average or slightly better than average conditions with a $5 deposit. Eventually, you’ll need to invest more, but there’s no shame in starting small and working your way up. Know that every broker out there doesn’t offer an account with a $5 funding minimum, but there are many recognizable options that do. You’ll also want to make sure you choose the best broker possible without paying unreasonable fees and keep our other tips in mind.