If it seems like more and more people are jumping on the FX trading bandwagon as the days go by, then you’re absolutely right, more people definitely are doing just that. As one of the most liquid markets in the world at the moment, forex trading, or foreign exchange trading is one of the most flexible types of markets that you could become a part of relatively quickly and easily.

Many of the trading terms may seem intimidating, but don’t let that put you off! The 24-hour open market works in your favor because you can jump in no matter the time of day, and starting isn’t difficult either once you learn the rules of trading forex. So, to find out what the minimum amount is to start trading and all things forex-related, keep reading below.

If you’re a newbie to forex, sometimes it can almost seem suspiciously easy to join the market or to be able to view it no matter the time of day, and no matter where you are in the world. It’s not a trick! Day trading is smoother to start because the foreign exchange market operates 24 hours a day, and that is part of the reason that it’s one of the most accessible markets in the world.

Another aspect of its accessibility is the fact that you could open your account with as little as a $50 initial deposit, whilst other brokers have no initial fee at all, so finding the right broker is quite important. This is a great option especially when you’re just starting out because you won’t know all the ins and outs immediately, and it means you’re less likely to make mistakes, or at least less likely to incur any sort of loss because you’ve started out with minimal capital to begin with.

There really is no fixed or correct amount needed to start day trading, which is one of the benefits of the market. It really is up to you as an individual. It comes down to just one thing; the minimum capital needed for day trading depends on how much you can afford to begin trading with.

That could be $50, it could be $100 or it could even be as much as $5000. Of course, a lower amount will have some limitations to it, but as a starting point, $50 or even $100 won’t impact your wallet the same way $5000 would, and a smaller amount means that you can really learn the ropes of forex before moving onto bigger numbers.

Aside from how much money you need to start forex, which we have mentioned is really up to you, there are some other important factors that could determine your starting capital as well, and they are just as important to take into consideration.

As with any other form of trading on the market, there are some risks that you should be aware of with forex trading. The last thing you want is to suffer from losses just as you’ve started to learn about trading, so a general rule that even the most professional traders still follow is to avoid leverage-based trading, and not risk more than 1% of your capital on any single trade. If you actively make sure that each trade does not exceed 1% then you will be minimizing the risk of taking any hits to your capital, which is the ideal situation to be in.

Much like your minimum capital, this also really varies from person to person. For someone who takes trading as a full-time job, they may spend more than a few hours every day doing the actual trading part. For others, even two hours a day on the market is more than enough to hop on, make a few trades, and then log off for the day.

But remember, the actual trading side of things is only a small part of it. Learning strategies, honing skills, and researching market trends are all things that make up a successful trader, so chances are that many people also put in countless hours doing all of the leg work so that they can make prosperous trades.