Previously, it was difficult to make money in the financial markets, and on binary options in particular. This was largely due to the amounts that needed to be invested to start trading. To put it simply, many simply did not have such amounts.
Now everything has changed. Many traders start options trading not only with a minimum deposit, but also with amounts over $10,000.
In this article, we will analyze the topic of the minimum deposit for binary trading.
Binary options with a minimum deposit – what is it and what is it for?
Often, beginners are just looking for a broker and register, make their first deposit and trade. The purpose of the auction is different for everyone. Someone wants to learn, others want to earn and increase their capital.
How big should this first deposit be?
This is an example of the size of the deposit with the broker yutrader. Support and additional services depend on the size such as signals, a personal manager, etc
Often we do not think about it if the other conditions are more or less acceptable.
But in vain. Let’s imagine a situation: you are well versed in the market, in options trading in particular. And, maybe, not averse to trying your hand at trading. But it was not there – the amount of the minimum deposit with the broker, say, is about $ 100.
Needless to say, in some countries this amount even exceeds the amount of the average salary? And we are not talking about unskilled labor.
Read also: Binary Option Trading Deposit Acceleration for Beginners
And to pay the bills, to feed the family … You can’t exactly allocate $100 for trading, even if you really want to. And it’s not even that it’s scary to lose. If you take the risk, then your family will have nowhere and nothing to live on.
And how many are like in the example. And brokers are well aware of this. And they understand that it is better to earn a dollar from a million customers than a thousand from one. Therefore, binary options brokers offer to open accounts with a minimum deposit.
The size of the minimum deposit for trading binary options should take into account several basic parameters:
- Trading strategy – each strategy gives certain statistics, so you need to clearly understand how many transactions you need to make in order to fully trade the strategy for binary options.
- Minimum bet – it’s important to know how much you’re willing to risk in each bet. After all, if your deposit is $ 50 and the minimum bet from the broker is $ 25, the chance that you will earn is very small.
- Risk management – this point refers to the two above, in order not to turn trading into a casino, it is necessary to calculate the risks.
If your strategy showed 70% of positive trades, then 30% were in the red. If the minimum bet is $5 and the payout is 80%, you need to have a minimum deposit according to the following calculations:
If you lose you lose $5, at 30% you can lose $15, if you have to earn immediately after that you will earn $4 from each trade.
Also Read: Minimum Bet Binary Options Brokers
You need a minimum deposit of $20. And this is with the expectation that you will get a plus from 4 transactions.
Therefore, if the broker has a minimum transaction of $ 10, you should not make a deposit of less than $ 200. If $5 you can make a deposit of $100-150.
So, who needs minimum deposits?
In this way, they attract clients ( traders) who would not otherwise think about trading. In any case, the broker will earn money – on commission, for example. After all, the broker does not trade with his own money, but with the trader’s money. Simply put, it provides intermediary services between the market and the trader. It can also sell trading signals, automated trading, and many additional services.
Binary options trader – must determine the goals before starting trading and making a deposit to the broker. If you decide to try your hand at trading, or check out a new broker, or test an options strategy, the minimum deposit will suit you.
At the same time, if you decide to start earning, you need to make a deposit relative to the points discussed above.
Novice traders often use the minimum deposit with a broker, precisely because their goal is to try binary trading.
Is it profitable for the broker for the client to lose money?
This question worries milestones who make a deposit with a broker and want to understand which side the broker is on, whether he will help us or will affect the loss of the deposit.
Think for yourself: if you earn, the broker gets its share in one way or another. And the longer you are with him, the more he will earn. And if you have merged the deposit, then you become more uninteresting to the broker, because it is unlikely that you will continue to trade with him.
And, without a doubt, the minimum deposit is good for the trader. You can try your hand at trading for just a couple of dollars. If you invest correctly, you take the profits and walk away. If the transaction ends in a loss, then you will not spend a huge amount of money, but only a few dollars.
Disadvantages of the minimum deposit
It would seem that the option is ideal for the trader and for the broker. But still, the deposit is limited in the minimum plan. After all, if you make a deal, then in the event of a favorable outcome, both you and the broker earn.
But if the deposit amount is dollars, then the transaction amount should be equal to a few cents? The broker will not even cover his expenses with the commission that he earns on such a transaction. Why, then, did the broker put up such a low deposit? This should at least alert you.
Do not forget about the psychological moment. Agree that with a small deposit and a small transaction amount, respectively, you can’t count on millions. Therefore, even if you earn, there will be a feeling of dissatisfaction and regret. Like, why didn’t I bet more, because I earned it.
The main disadvantage of the minimum deposit is the fact that you, the trader, will not be able to control and calculate the risks. Therefore, your trading will be similar to playing in a casino. And as you know, the casino always wins, and in our case, the TRADER LOSES MONEY.
And as for the fear of losing your hard-earned money? If you initially invested at least $ 100, then this loss will already be noticeable. But if we are talking about 10 dollars, they can be drained, without much regret. And then another 10. And 10 more
The advantages and disadvantages of the minimum deposit are from a psychological and technical point of view.
Most likely, the advantages and disadvantages of the minimum deposit are due to the personal qualities of the trader rather than his professional qualities or objective factors.
If you like to take steps in trading little by little, without much cost and shock, but also without earning much, then the minimum deposit is yours.
You should always remember that binary options trading is a job, not a game of chance. You need to use strategies and systems to start earning. An integral part of trading is RISK MANAGEMENT. If you do not take into account risk management, then you can lose everything quickly.
TO TRADE ACCORDING TO THE STRATEGY, YOU NEED TO CALCULATE THE INITIAL DEPOSIT IMMEDIATELY. THUS, IN ORDER TO TRADE ACCORDING TO THE STRATEGY, YOU NEED TO KNOW HOW MANY TRANSACTIONS YOU NEED TO OPEN AND WITH WHAT AMOUNT.
Binary options brokers offer a variety of additional tools for trading, and support. Therefore, the larger your deposit, the more you will receive.
Conclusion:
The beginning of trading on binary options can be either from the broker’s minimum deposit or from the standard one. It all depends on your goal.
When choosing a broker, you should pay attention to the amount of the minimum deposit, namely, how much you can afford it, but more attention should be paid to factors such as the availability of licenses and permits, financial guarantees, and the presence of claims. And only then, based on all factors, decide how suitable this broker is for you.
>>CHOOSE A BROKER WITH A MINIMUM DEPOSIT OF $ 10 – $ 300<<
