Opening Forex Account with $100.
With the rate of inflation hitting through the roof in many countries, the money you have in your possession has lost its purchasing power. And if someone in these challenging times asks you how much you can buy with $100, your answer probably will be “not much .” You will be surprised to know that you are wrong. $100 may not buy you much in the conventional market, but the currency market can give you a return on $ 100 that may force you to rethink your entire investment strategy.
Forex market is the place for you if you want to use your money efficiently and effectively. $100 can let you enter the forex market and can help you in generating a new source of income while sitting at home sipping your coffee. And if – you will find it difficult to believe, given the difficult times we live in – you succeed in devising and implementing a proper trading plan, your first $100 forex account can eventually bring many incredible gains in your life. And even if you make a mistake the first time, you will be losing only $100 that you think any way may not be able to buy you much in the market!
The forex market is full of unheard possibilities. Currency trading offers a huge opportunity to earn a massive dividend on your investment by being liquid and volatile. But there are no shortcuts in forex trading. The key to succeeding in Forex trading is first to develop a viable trading plan that you can easily follow.
Having unrealistic hopes can make you desperate and make you make silly mistakes. It doesn’t matter whether you have $100 or $1,000,000 in your margin account; if you don’t have a proper strategy, you will lose money.
Opening Forex account with $100: fantasy or reality?
Nowadays, many lot sizes are available. With micro, mini, and nano lot sizes opening a forex account with $100 has become a distinct reality. Many brokers accept a deposit as low as $10. It raises a fundamental question: Is it worth it? Just because you can do something doesn’t mean you should do it. When it comes to $100 forex accounts, there are certain things we need to keep in our mind. The number one thing that one must never forget is that a broker is not concerned with your success or failure. A broker is primarily concerned with making you invest. What happens after an investment is an altogether different issue. So, should you put $10 or $100 into something you are unsure about?
Starting an account with $10 or $100 is a dream-come-true for all of us besides being cool. After all, it is not a huge amount of money! But – and it is a significant but – opening your account with $100 or less puts you at a huge disadvantage compared to those opening their account with #100 or more. And in the long run, your investment doesn’t bring you any profit. Truth be told, you may end up losing everything you invested.
But is there no upside to opening an account with small capital?
We have discussed at length the possibility of opening a forex account with $100. It is possible but not probable. It isn’t easy to earn a profit on an account with $5000 or $6000. You can understand the practical problems one will face in making their $100 investment profitable.
You might be feeling confused. At the beginning of the blog, we made you believe the forex market can give you a good return on $100. And then we contradicted ourselves by cautioning you against opening a forex account with just $100. Well, the truth, as always, is a little complicated.
The fact is that you can earn in the forex market by opening an account with just $100, and you may end up getting nothing.
The following are the points one needs to keep in mind while opening a forex account with just $100
(1) Be good at market research.
Knowledge is the most crucial thing in the forex market. If you do not understand the market’s behavior, it’s game over for you, irrespective of what kind of account you open. But if you have mastered the art and science of reading and predicting the market’s behavior accurately, you can make money on even small investments.
(2) Wrap your head around Fundamental analysis
The market reacts to news of significance. Each currency’s value reflects its country’s economic health and geopolitical situation, which significantly impacts any country’s overall financial stability. You must keep yourself up-to-the-minute on current affairs. Ensure to know the prevailing political situation of a nation and its central bank’s policy. Fundamental analysis, if correctly done, can ensure a return on investment.
(3) Open a demo account and learn the art of trading before jumping into the fray.
A demo account gives you an idea of what goes into making the forex market and how it functions. A demo account is like a mock test. Like mock tests check your knowledge and prepare you for the actual test, a demo account prepares you for real trading. If you keep losing on your demo account, it is time to go back to the drawing board and prepare yourself thoroughly before coming back.
We have shown you how opening a forex account with just $100 is possible. But just because something is possible does not mean it needs to be done. To attempt anything, it needs not only to be possible but also probable. Though opening a forex account with a little investment is undoubtedly possible, you need to tick all the right boxes before doing it.
If you can research the market and understand the significance of monetary policies and other geopolitical news, you can earn a profit on as little an investment as $100. But, on the other hand, if your understanding of the forex market is zilch, you will lose whatever you have invested. Opening a demo account is a must as it gives you an idea of the functioning of the forex market. After practicing with your demo account, you can take the plunge into the forex market. One should not forget that your conduct in the forex market is more important than your investment. If you suffer from quicksilver shifts of mood, forex is not for you. But if you have control over your emotions, you can turn your $100 investment profitable.