Best Trading Account Size
Hi Trey, just had a good question at the back end here, and one of the questions is what’s the best size account to start trading with?
Well, if you’re a new trader and you’re just starting to trade, and you’re wanting to learn how to trade, the first port of call for you is to have a demo account. Now there’s important reasons for having a demo account.
First of all, if you’re not familiar with the terminal, you’re not familiar with how to place buy and sell orders, how to position size, just using a demo account will help you.
If you have any mistakes, it’s not going to cost you. So first of all, trade with a demo account, but assuming that you’re okay with a demo account, you know the how to place a trade and you want to experience what it’s like to really trade with real money in the market.
I think the best size account to start with is a small one, preferably the smallest or around a thousand US dollars or a thousand pounds or a thousand euros, something like that.
So when you trade a micro lot which is not point not one of a standard lot, you can experience what it’s like to trade without leverage and also you begin to get a sense of having multiple positions, you know what it feels like to lose a little bit of money, to make a little bit of money, you can start to feel your way in the market without it necessarily costing you too much.
So, the way to begin trading a demo account, and then once you know what you’re doing, you’re able to consistently make some returns over a six month period, then move up into a 1,000 unit currency, and that will be very helpful for you.