Table of Contents
- 1 What Forex trading costs
- 2 Choose the right broker
- 3 How to start trading with R 200
- 4 Brokers with best Forex Deposit Bonuses
- 5 No deposit Bonus – A.K.A trade without a deposit
- 6 Just going with the flow
- 7 Ways you can increase profits in Forex with small deposits
- 8 Let’s wrap it up
- 9 FAQ for trading without much money
Forex trading is an amazing way to have some additional income to your primary income. However, some people confuse it with passive income, and it most definitely is not passive income. Most traders don’t realize that they not only invest their money into trading but their time as well.
However, today we are not discussing the value of Forex trading, but are answering the question that you have definitely asked yourself – How much do I need to start Forex trading in South Africa? The simple answer would be – any amount can get you started, even if it’s 75 ZAR. However, not all brokers will let you open an account with the minimum deposit requirement allowing investments below $25. XM Forex broker is one of the few brokerage firms offering the lowest thresholds of deposits to start trading with them. The below guide will explore the broker options, opportunities to start trading at the lowest cost, and associated risks and benefits.
What Forex trading costs
Generally, there are no special costs connected to online Forex trading, the reason is that you don’t just buy Forex, you trade Forex, meaning that the invested amount can easily be withdrawn back or made a profit on after a loss. However, most South African traders are still trying to minimize the amount of money they need to deposit in order to start trading in the Forex market. Generally, the Forex trading minimum deposits vary broker to broker on market, but there is some sort of industry standard that is rarely exceeded by a single company. In most cases, the minimum amount to start Forex trading in South Africa is around R 2,800, but there have also been occasions where people were able to start trading with an even less amount. So what is the secret of avoiding extra deposits and “costs” when starting to trade Forex in South Africa?
Choose the right broker
In order to truly avoid any unnecessary deposits, you will need to choose a perfect broker for the deposit. As I already mentioned, some require more than R 2,800 and some require less. That’s how some people managed to start Forex trading with R 200 or even less. Generally, you will have various offers from forex brokers, but let’s focus on how to start Forex trading in South Africa the minimum deposit for now. In order to truly profit from your trades, the broker needs to have you deposit as much as possible, however, some avoid the volume of the deposit and just focus on accommodating as many traders as possible. Even with small deposits like R 200, it’s possible to make a profit if there are a lot of people involved. One primary example of a broker like this is XM, which allows its customers to deposit a minimum of $50 or R 700, but there are other options as well.
How to start trading with R 200
Some brokers have this feature called the deposit bonus, which is a very convenient tool in the hands of an experienced trader. They will know exactly how much they need to deposit. Using this option there is pretty much no limit as to how much do you need to start trading Forex. Let me try and explain how it works.
Let’s say that you have approached a Forex broker, whose minimum deposit is somewhere around R 200, which is a great deal. Making significant profits with a small deposit like R 200 is pretty much impossible. However, brokers understand that traders are reluctant to deposit large amounts and are therefore offering this deposit bonus. Meaning that once you deposit that R 200, you will be eligible for, let’s say, 50% of that deposit. Meaning that those R 200 will have an extra R 100 added on top of it. Now, this is still not too much, but it’s better than nothing. Furthermore, once you trade and get the hang of making profits with small amounts, you’ll be able to move on and use leverage, which basically increases your trading size. No deposit bonus minimizes how much do you need to start trading Forex in South Africa. You can start trading with the no deposit bonus on XM by following the link below.
Open account with XM with lowest deposit
Brokers with best Forex Deposit Bonuses
As the Forex trading in South Africa is expanding rapidly, brokers have started offering better Deposit bonuses, to better accommodate the need of more traders. We have compiled a list of brokers in South Africa, which offer the best Forex Deposit bonuses on the market for you to choose from.
AvaTrade
Starting Capital
$100
Financial License
CBI, BVI FSC, ASIC, FSCA, FSA, ADGM, CySEC
Promotion
Financial Leverage
1:400
Established
2006
Trading Software
MT4, MT5, WebTrader, AvaTrade Go
XM
Starting Capital
$5
Financial License
CySEC, FCA, ASIC
Promotion
$30, 50%+20%
Financial Leverage
1:888
Established
2009
Trading Software
MT4, MT5, WebTrader
Plus500
Starting Capital
ZAR 1,500
Financial License
FCA, CySEC, FMA, FSCA, ASIC
Promotion
12-25%
Financial Leverage
1:300
Established
2008
Trading Software
MT4
CM Trading
Starting Capital
$250
Financial License
FSB
Promotion
Financial Leverage
1:200
Established
2012
Trading Software
MT4, SIRIX
Exness
Starting Capital
10 USD
Financial License
FSA
Promotion
N/A
Financial Leverage
1:2000
Established
2008
Trading Software
MT4, MT5
IQ Option
Starting Capital
$10
Financial License
CySEC
Promotion
Not available
Financial Leverage
1:30
Established
2013
Trading Software
WebTrader
RoboForex
Starting Capital
€/$ 10
Financial License
FCS Belize
Promotion
30 USD
Financial Leverage
1:2000
Established
2009
Trading Software
MT4, MT5
EagleFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
AMarkets
Starting Capital
$/€ 100
Financial License
FSA
Promotion
25%
Financial Leverage
1:1000
Established
2007
Trading Software
MT4
OspreyFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
HotForex
Starting Capital
5 USD
Financial License
FCA, FSA, DFSA, FSCA
Promotion
100%
Financial Leverage
1:1000
Established
2010
Trading Software
MT4, MT5, WebTrader
ForexMart
Starting Capital
15 USD
Financial License
CySEC
Promotion
30%
Financial Leverage
1:500
Established
2015
Trading Software
MT4, WebTrader
Tickmill
Starting Capital
100 USD
Financial License
FSA, FCA, CySEC, FSCA
Promotion
30% Welcome Bonus
Financial Leverage
1:500
Established
2014
Trading Software
MT4, WebTrader
FXOpen
Starting Capital
1 USD
Financial License
ASIC, FCA
Promotion
Forex Cashback
Financial Leverage
1:500
Established
2005
Trading Software
MT4, MT5, WebTrader, TickTrader
No deposit Bonus – A.K.A trade without a deposit
If you are still unsure as to how much money do you need to trade forex, it may be worthwhile to go for a no deposit bonus. It is a perfect way to start trading Forex with $100, which aren’t even yours, meaning that you don’t have to deposit, some brokers just give it to their customers for them to start trading. It may sound like a scam, but it is a standard strategy for Forex brokers to attract beginner traders. Sure, it’s usually not good to be influenced by marketing tactics, but if they offer some sort of value, why not follow them? Even though there is much value in the Forex no deposit bonus, we still need to discuss how it works and what it is exactly.
It’s quite simple so I won’t bother you with too much information. As soon as you learn how to trade Forex in South Africa, register with a Forex broker and find out that there is a no deposit bonus available. All you have to do is apply for it, provide some extra information, usually in the form of your ID card, and you’ll receive it within an hour or so.
But there are some things to consider with no deposit bonuses. The thing is, you can’t withdraw the bonus, for obvious reasons, and you can only start withdrawing the profits you make using that bonus after you’ve traded a specific amount. A no deposit bonus is a great way to start making money trading Forex in South Africa, which many traders have already taken a shot at. Claim your no deposit bonus of 30 USD with XM now.
Just going with the flow
Ok, let’s say that you have absolutely no intention of using any trader benefits and want to just deposit your way towards the promised profits. Exactly how much money do you need to start trading Forex? Well, that depends on what type of trader you are. Are you willing to take large risks? Then a small deposit, something around R 1,500, is enough for you to grow your account at a rapid pace. There are even cases when people were able to make 30% of their deposit within a single trade, but there is an immense amount of risk associated with this.
The second option is if you want to be as safe as possible. With this type of mindset, it is very hard to make significant gains in the Forex market. In order to truly make money trading Forex in South Africa, you need to have at least some risky trades, but let’s stick to the topic for now. As for how much to start Forex trading, in order for you to avoid risks and still be able to make a sizeable profit, I believe that a deposit of R 14,000 is quite enough. even smaller gains made with this deposit would be enough to amount to at least some type of profit, a result you’d be happy with at the end of the day.
Ways you can increase profits in Forex with small deposits
One of the best ways to increase your profits when trading Forex is to use the leverage that the Forex broker offers. If you don’t know what Leverage is, I’ll try to give a small description, but you can check our guide “forex trading for beginners” to have a more in-depth explanation, in case you do not know much about how does Forex trading work in South Africa?
You have probably seen these weird numbers appear with Forex brokers, numbers like 1:100, 1:500. What do they mean? Well, these are the numbers that specify leverage. 1:100 leverage means that once you engage in a trade with let’s say R 100, the broker will multiply it by 100, meaning that your trade will become R 10,000, ultimately growing your profits. Leverage renders the “How much do I need to start trading” question redundant, as there are pretty much no distinguished numbers. Some brokers offer leverages as high as 1:900, so you can imagine how big those numbers can get.
However, several aspects need to be considered here. For example, in order for you to get a profit, the trade needs to be a success. After a successful trade, the broker takes a part of the profit, usually in proportion to the number of funds he gave you, but at a point where it’s still profitable for you to continue using leverage. One of the risks to consider is an unsuccessful trade. This could be very damaging as you may lose funds you don’t have, therefore it’s always important to set a stop-loss at a point where you can afford to lose.
Here’s how to start trading Forex in South Africa as an expert on the matters of leverages. Let’s say you engaged a trade with R 1,000 with leverage of 1:10, which sets your total trade on R 10,000. It’s best to set the stop-loss at about R 9,500 because not only will it stop you from losing more than you can afford, but also the total amount of your initial deposit.
Let’s wrap it up
As you can see, it is not that difficult to understand the logic behind the starting amount of deposits in the Forex market. There’s no defined amount of how much money you need to start trading Forex in South Africa. It all depends on your style of trading, and furthermore, you have different tools at your disposal that you can use at any time. Make sure that you are ready for the risk and invest only the amount that you are ready to lose, and above all, make sure to pick a certified broker, suited perfectly for you.
Open trading account with XM for free
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