One of the benefits of the Forex market is the lower initial capital requirement needed to manage diversified portfolios compared to other assets, like equities.
Within the Forex brokerage scene, low/minimum deposit Forex brokers are essential for beginner and seasoned traders alike. We will cover the benefits and drawbacks of low minimum deposits and highlight why traders should not only focus on this aspect alone. Do you trade with the best broker for your portfolio?
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- Octa, A commission-free broker with a proprietary copy trading service.
- XM, Exception range of assets + negative balance protection.
Best Low Minimum Deposit Brokers Comparison
| | | |  | |
Regulators | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize | FMA, FSA |
Year Established | 2005 | 2009 | 2011 | 2009 | 2014 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.2 pips | 1.0 pips | 0.9 pips | 0.1 pips | 1.3 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | 1.3 pips | 0.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.16 | $0.12 | $0.30 | $0.19 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
Octa
In Summary A commission-free broker with a proprietary copy trading serviceFounded in 2011, Octa is a “Straight Through Processing” (STP) broker, which means they do not have an internal dealing desk. They simply connect buyers and sellers directly. With this model, Octa aims to be more cost-effective than anyone else in the market. They offer low spreads and claim 97.5% of trades are executed without slippage.
Octa offers their clients a choice of three Forex trading platforms: the world’s most popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5). All of these can be traded as a desktop application, and on Android and iOS devices.
Octa is an unregulated broker but continues to earn the trust of traders around the globe, with more than 1,500,000 accounts opened. One reason for the ongoing success of this market maker is appealing bonus campaigns. This broker paid out almost $3,000,000 in bonus funds. Octa offers traders the MT4 and MT5 platforms, and a proprietary mobile trading platform. Octa additionally grants their clients Autochartist, but traders require a Silver Level in the Status Program. Traders have a choice between fixed and floating spreads, and the overall cost structure remains competitive.
Asset selection remains the distinct weakness at Octa, making it most suitable for new retail traders. A series of short educational articles offers a basic Forex introduction, and this broker maintains an excellent arsenal of research and analytics tools.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
XM
In Summary Exception range of assets + negative balance protectionXM makes the list of the most competitive low minimum deposit Forex brokers with a minimum deposit of $5. Traders get upgraded MT4/MT5 trading platforms, which fully support algorithmic trading and have embedded copy trading services. The recent addition of the XM Ultra-Low account offers traders swap-free, commission-free trading on select assets.
Beginners will benefit from high-quality education and research. The minimum trade size is 0.01 lots, except for the Micro account, which has nano lot sizes, with 1.0 lot equaling 1,000 currency units, where the minimum trade size is 0.1 lots or 100 currency units one tenth the size of the usual minimum, and the maximum leverage is 1:1000.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
Minimum Deposits Explained
Many brokers require a minimum deposit to open an account after passing verification. For example, if the minimum deposit is $100, traders must deposit this minimum amount before they can start trading. Most Forex brokers reject incoming deposits below their minimum requirement and return the funds to the sender.
Some Forex brokers may accept a partial deposit. They will inform traders that they received the funds but cannot activate the account unless they send the additional amount to satisfy the minimum deposit threshold. The lowest minimum deposit Forex brokers with the smallest capital funding requirements often require between $1 and $10.
Forex brokers with a minimum deposit requirement often set these levels in order to cover operational costs to offer their products and services to clients and some accepting small deposits do so at a loss.
Low Minimum Deposit Pros and Cons
When traders evaluate low/minimum deposit Forex brokers, they should consider the pros and cons before funding an account.
The pros of low/minimum deposit Forex brokers include:
- Flexibility to create a deposit plan.
- Accessibility to all traders
- Ability to evaluate live trading conditions at a broker.
- Testing new strategies in live trading conditions
- Learning how to trade in the Forex market.
- Diversifying portfolios across different brokers and strategies
The cons of low/minimum deposit Forex brokers include:
- Scammers and unregulated brokers may lure beginners with micro-deposits.
- Misuse of micro accounts
- Potentially fostering a gambling mentality
- High trading fees or other hidden costs
What is the Recommended Forex Minimum Deposit?
While low minimum deposit Forex brokers may ask for anywhere between $1 and $10, traders should approach Forex trading realistically. Trading with insufficient funds is one of the core mistakes most traders make, which usually results in consistent losses. There is no magic number for the optimal dollar size of a successful portfolio, and Forex traders should approach the market depending upon their individual situation. Rather than finding a minimum deposit that works for others, they should consider their profit expectations and anticipated monthly earnings potential.
Here is an example:
- A trader attempts to earn at least $500 monthly.
- The desired Forex strategy yields an average of 3.5% monthly.
Therefore:
($500 / 3.5) x 100 = $14,285 deposit required
Please note:
- The above example is what the trader requires.
- Most traders will start with notably less, which is why a solid deposit strategy remains paramount to supporting organic growth of a portfolio.
A deposit strategy example:
- Initial deposit: $2,000
- Start executing the trading strategy.
- Follow-on deposits of $200 monthly
Please note:
- A deposit strategy will help traders reach their target and allow for strategy refinement and fine-tuning.
Can I Trade Forex with No Money?
Forex trading without money is impossible, as each trade has a margin requirement, dependent on the leverage per asset. Low minimum deposit Forex brokers ask for less capital to start trading, but it always requires funds. The size of the portfolio determines the income a Forex strategy can provide.
Why is the Minimum Deposit not the Only Thing to Consider?
Once traders fund a trading account with a low minimum deposit Forex broker, they have their foot in the door and can start building a record and experience, but what awaits them afterwards matters more. The trading conditions, particularly trading costs, order execution, leverage, and minimum lot size, will impact which strategies traders can successfully execute and how much they can earn per trade.
Why is Lot Size Important with Low Deposits?
Like most brokers, low minimum deposit Forex brokers usually have a minimum lot size requirement of 0.1 lots, which equals 1,000 currency units (i.e., EURUSD is €1000) in a standard account, or 100 units in a micro account. This allows traders to diversify smaller portfolios, as the lot size with the leverage determines the margin requirement needed to support positions.
Bottom Line
Trading with low/minimum deposit Forex brokers is ideal for traders to evaluate live trading conditions, beginners to learn trading in the Forex market as the next step from demo accounts, and for seasoned traders to forward test new strategies under actual market conditions.
You might also be interested in reviewing the below top brokers:
