You might have heard of US Forex brokers that allow small trade size, but did you know that the industry has become increasingly difficult to operate without a large capital? To operate in the US, you need to have a license and at least a $10 million deposit. That deposit will cover about two years of profit. But you should be careful when selecting a broker because high leverage will increase the risk of losses. A US forex broker that offers small trade size may not be right for you.
To start trading in the forex market, it is important to understand how currency pairs are priced. A small trade size is similar to walking over a long, stable bridge, while a large, thin tightrope can lead to disaster. In either case, the trade size should match your account s risk level. While the minimum trade size may be small, you can use it as leverage to make large trades. This way, you can profit from small market movements without sacrificing your risk.
Moreover, the regulatory approval of US forex brokers is an important factor to consider. You can be assured of their reliability if the broker is registered with the National Futures Association NFA, an independent government agency that ensures fair trading practices. A registered broker has a long history of operation and is compensated in the event of bankruptcy. Furthermore, a registered broker protects you from fraudulent activity. However, it s vital to check out the minimum trade size for US forex brokers.
Another important consideration when choosing a US forex broker is the safety of your funds. Even if the broker is secure, there is always a risk of your account being hacked or going bankrupt. If your broker is bankrupt, you can recover more than the balance in your account through legal action. To minimize risk, you can choose US forex brokers that offer negative balance protection. This ensures that your funds are protected in the event of a position crash.
While choosing a broker, make sure to read reviews from real traders. The Traders Union is an excellent resource for reading feedback on a broker s service. Positive comments will raise their ranking, while negative ones will lower it. The website has a "Compare Forex Brokers" section. It s worth checking out a few before committing your money. They are likely to offer you a demo account with a small trade size.
Another US forex broker with low minimum trade size is IG Markets. This broker offers a free demo account with no minimum deposit and a wide variety of training materials for beginners. It also has an affiliate program, where you can earn up to $100 for every referral you make. The IG Markets site is listed on the stock exchange and regulated by top-tier regulators. For your peace of mind, you can also choose IG Markets because they are a publicly traded company and are highly regulated.