I have a question…I want to do a challenge and start with 62 euro in a cent or micro account.
I need to folow the pipsology school but just wanted to know.which leverage is best for this amount?
I know you say it will be impossible but just wanted to know if I’m disciplined and patiently…then I want to see if I can build this up.
I know a lot of you will say it is impossible but i want to find out for myself.
Any advice which low deposit brokers are good and whioch leverage to use?
Sixty-two euro in a micro account would be difficult to manage in a prudent fashion.
Sixty-two euro in a cent account, or a unit account, would be a much better choice, provided you have the discipline you mention in your post.
Let’s be sure that you are clear regarding some definitions.
Leverage comes in two flavors: maximum allowable leverage, and actual leverage used.
Maximum allowable leverage is the leverge your broker advertises. It’s the leverage that is capped by regulatory agencies (in the case of regulated brokers). Whenever you hear someone talk about 100:1, or 50:1, or 400:1, or some other big number, they are talking about maximum allowable leverage.
Maximum allowable leverage is related to the margin required to open and hold a trade. Generally, you would like this margin requirement to be as low as possible. Which means that you want the maximum allowable leverage associated with your account to be as high as possible.
Ideally, 1000:1 maximum allowable leverage would be good. Then, the margin required to open a trade would be only one-tenth of 1% of the notional value of your trade.
You may or may not have a choice in this matter, depending on which cent account, or unit account, you choose for your trading.
In any case, do not choose a broker based solely on the high maximum allowable leverage offered. Due diligence in choosing a broker requires much more than finding high maximum allowable leverage.
Actual leverage used is simply the ratio of your position size to your account size. If you have a €62 account, and you open a trade with a notional value of €500, then you are using a little over 8:1 actual leverage (€500 ÷ €62 = 8.0645).
Notice that actual leverage used is not related in any way to maximum allowable leverage, as long as your actual leverage is less than the maximum allowed.
If you manage the risk in your trades properly, actual leverage used will take care of itself, and you won’t have to calculate it, worry about it, or even think about it.
Micro accounts allow you to trade in increments of one micro-lot. That is, you can trade one micro-lot, two micro-lots, three micro-lots, etc., but you can’t trade one-half of a micro-lot, or 2.7 micro-lots, etc.
Cent accounts allow you trade in tiny euro-amounts, in increments of one cent. You could take a position (open a trade) worth €0.01, or €0.50, or €3.27, or any other amount up to the leverage limit of your account.
Unit accounts allow you trade any number of units of base currency, from one unit, on up. So, you could trade one unit of EUR/USD (with a notional value of €1.00), for example.
Risk is normally defined as the loss you will suffer, if your trade is stopped out. And it is normally specified as a percentage of your account balance. Most traders limit risk to 1%-5% of account balance, with 2% being the most popular choice. If you were to use the 2% risk percentage in your €62 account, then you would never risk more than €1.24 on any one trade.
If you run some numbers, I think you will find that this can be done quite easily in a cent account, or in a unit account, but not so easily in a micro-account.
I have no experience with cent accounts. My only experience with a unit account was an Oanda demo account years ago.
That Oanda demo worked very well for trading tiny positions, taking tiny risks, and attempting to earn tiny profits. – With a tiny balance, that’s the only prudent way to trade.
@Clint.thanks for your reply.
Fbs goes to 1:1000 on a cent account and 1:3000 on a microaccoumt.is this also good?
The thing is that I did there 123 bonus and made a profit of 255 = 378-123 =255 euro
Now to get this bonus I have a to trade a total amount of lots need to check how much to.release this profit which would give me more money to trade with…that s why.I go for high probebility trades using price action.
What do they mean with floating spread from 1pip
There are some things I don’t like about Oanda but I still use them and you can start with a very small account and not be over leveraged. You can trade as little as one unit of base currency. Max leverage is 50:1
I see Clint beat me to it mentioning Oanda.
As I encouraged you to do in my previous post, go for the cent account. A cent account gives you the ability to trade tiny position sizes, and with such a tiny amount of capital (€62) to work with, you will need that ability.
Bonuses are gimmicks, designed to make you over-trade.
You said it yourself, “Now to get this bonus I have to trade a total amount of lots …”
That does not match up with your stated objective: To find out whether you are disciplined and patient enough to grow a tiny account.
Ignore bonuses.
My personal opinion is that a broker that offers bonuses does not have their clients’ best interests at heart. In my opinion, such a broker has two strikes against them, before I even begin my due diligence.
The broker sets the prices at which they will buy from you (the BID price) or sell to you (the ASK price). The difference between these two prices is the SPREAD. Obviously, if the broker controls the BID and ASK prices, the broker is controlling the SPREAD.
There are several ways that a broker can set these prices.
One way is to pass the bank’s BID and ASK prices directly to you, and charge you a commission to handle your trade. That’s how ECN brokers operate. That’s not what you are considering.
Another way is to establish a FIXED SPREAD that is so large that the broker is guaranteed to make money on your trades, no matter how the bank’s BID and ASK prices fluctuate. This, also, is not what you are considering.
And the third way is to add a retail mark-up to the bank’s BID and ASK prices, and pass those marked-up retail prices on to you. In this scheme, the retail SPREAD you are quoted floats (fluctuates), as the bank’s wholesale spread to the broker fluctuates. That’s the arrangement you are asking about.
Okay thx for the answer.
Did you heard of FBS?
Does oands have cent account or do you know good trusty broker with low deposit and cent accounts?
There are so many brokers☺
Of course it is possible, but it will take you a long time and EXTREME discipline to stick to your strategy all the way until the account grows. Once your account starts growing steadily, no reason why you shouldnt put in another 60…
I would say that low deposit + high leverage + negative balance protection are the best and only way to go for someone who has very little money to start with. The leverage is never a problem. GREED AND STUPIDITY is what blows your account, not leverage.
If you want numbers, I would recommend 1:500 leverage and start by trading 0.01 size. No complicated math, just my own opinion (and experience). You will be getting cents or a few dollars per trade but hey, you wanted a challange right?
One last thing. When it comes to education, read a few books on technical andalysis and trading psychology. The knowledge you get from quality books is superior to free online material.
@pazartesi thx for your explanation…I see that FBS also is on the list.they have 1/1000 as leverage
Do you know which brokers are trusty?like FBS I hear good things but then on a site like forex peace army they are very negative about it.
i dont know anything about fbs. profiforex, pepperstone, ic markets seem reliable based on my resarch but i dont have personal experience with them. exness i dont like.
when you are starting out, just any broker will do, you can worry about reliability once you need to make big withdrawals, than you can change a broker for a better one. Dont waste your time with it now. Now you just need a broker with fast execution and one where you can easily open and close multiple demo and live accounts.
First it is essential to know how much leverage you are allowed to receive. Different brokers are offering versatile leverage opportunities. Again, it is important to tell you that though with the help of leverage you can maximize your invest able funds, you have to manage funds properly. Otherwise levered funds can be burden for you.
