Stock Market Deserter

Hi there,

U.S. resident newbie here - spent almost 2 years in the U.S. equities market, got burned trading options, currently breaking even as a pattern day trader, but would like to transition to forex currency trading. I’ve heard that new forex traders need to start based on various starting capital levels for forex trading to be worth one’s time - minimum $10,000 according to FXCM or minimum $50,000 according to the Babypips lesson on leverage and margin trading. Curious which minimum starting level is more realistic. I’m rather surprised how large these minimum capitalization numbers are, given the fact that most brokers offer entry levels as low as $25.

Thanks,

Fil

It really is all up to what you are looking to do with your trading. If you are looking to use forex as your main source of income then the more capital you have the better our chances are gong to be. To be “worth ones time” 10k seems reasonable.

Brokers offer entry levels as low as $25 for the people who want to get there feet wet in trading but cant afford to toss 10k in toilet if there account goes south. Most with such a small capital will wipe out in a really short period of time but there is a lot of people in this category so even though the money the broker makes off someone with this size account is really small there is so man small accounts there is a hefty profit for them. If nothing else it pays for the bandwith required to let them operate and the few that do make it well now they will gain a loyal customer out of it and as there account grows so does the entries which spells $$$ for the broker.