Forex Starting Capital – plan how much you would like to use as your capital as if you are starting a business


Approach forex trading like how you would approach if you are starting a small business. Therefore, you should set aside a sum of backup forex capital in case initial deposit is not enough while you are still mastering forex trading.  Have a forex trading plan (like a business plan). Get educated first, don’t fight the war bare-handed.

Good news is, you could start a forex business with as little as $200. But we recommend a higher amount like $3000-5000.


How much should your Forex Starting Capital be?

  • You could start trading forex with as little as $200 due to effect of leverage. However, this is not encouraged.
  • Think of forex trading as starting a business. How much do you require if you were to start a small business? $5000? $10000? Most of the time, I guess it will be more than these amounts.
  • There is no ‘right’ amount to start trading. Rule of thumb:
  • Use whatever money you can afford to lose
  • The money should not come at the expense of your love ones or family
  • Break the money into 3 parts
    • First part to “buy your goods”- in trading, it will be to acquire knowledge and gather enough experience. You might need some money to pay school fees first.
    • Second part will be your first deposit into your trading account. There will always be counter-party risk (i.e. business continuity risk of your broker).
    • Third part is your reverse to fund your account again should you find that you need more money in your trading account.
  • For example, if your total starting trading capital is $15,000 for starting your forex business, then put $5,000 aside to acquire proper skills and knowledge. Another $5,000 as initial funding. Lastly the remaining $5,000 as reserve.
  • Some Tflow® students start their trading with SGD 50,000. Some start with $10,000 -20,000. Be comfortable with whatever you want to set aside.
  • If in doubt, start small such as $1,000 – $3,000.

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“Live” actions and reviews from our students directly from our social media accounts. We don’t tweet winning trades only. We tweet losing trades as well. It’s just that we have more winners. Follow @terraseeds in twitter for live trades and forex ideas.

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