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How to Build Forex Trading Account from Scratch

by Didimax Team

For you who just build forex trading account, it would be nice to try it first with relatively small capital. This is done to give you more experience before using a larger capital.

It's better to make a lot of mistakes when using small capital so that it can be used as experience when you use large capital. But it’s better to avoid or at least minimize the risk loss you may experience.

To start trading forex with a small account, of course, you have to look for the best forex broker that accepts account creation with low deposits.

There are already several forex brokers who accept a minimum deposit of $100, but of course, it is also necessary to look at the security of the broker starting from the reputation and regulations that protect it, so that your account is also safe.

For that, you can consider Didimax forex broker because it is registered with BAPPEBTI and has experience as a forex broker in Indonesia. Your trading will be safer with a legal forex broker.

 

Consider Leverage Wisely to Build Forex Trading Account

Leverage is useful for those of you who want to trade forex but have small capital. Without leverage, you will not be able to open a forex account with a deposit of only $100, unless you trade on a cent account.

In fact, many forex brokers can offer low minimum deposits because they match them with high leverage. So, suppose you only have $100 in capital and use maximum leverage of 1:1000, then the volume that can be traded doubles to $100,000. 

You can open up to a hundred trading positions this way, each measuring one micro lot. However, large leverage doesn’t mean your transaction is risk-free. The ‘leverage is directly proportional to risk’ rule.

Even if it is supported by leverage, the margin taken from the $100 capital will be quickly drained if the price moves against your position. For that, deciding your leverage level must be done very wisely.

The size of the trading volume when you build forex trading account that is too high due to leverage will only give the illusion of how to trade forex with small capital.

You seem to be able to open positions with large sizes, even though the capital resistance is very little. So that how to trade forex with small capital remains safe, choose the ideal leverage that does not plunge you into a high-risk forex strategy.

Focus on Trading Plans and Strategies that have been Made

The problem experienced by many traders who just build forex trading account, they focus on how to get big profits in a short time for various reasons. Usually, the smaller the account balance, the more afraid the trader will be to lose.

By focusing on the profit that you will get, then you will pay less attention to the trading strategy that you have implemented, so it is likely that you will not be able to apply the trading plan to the maximum.

What you need to do is focus on strategy and money management according to an effective trading plan and strategy. You may undergo loss or receive profits depends on your strategy.

If you have been able to succeed on a demo account, you should not worry when trading on a real account regardless of the size of the capital. As a trader, it’s important to mind the amount of lot you’re using. 

Size (lots) is the most important aspect in forex trading with small capital. Trading requires continuous learning so that you get used to it and understand the ins and outs. That way you can build forex trading account to be even more bearish.