Can I Start Trading Forex With Just $10?

In recent years, Nigeria has embraced online trading. International brands recognize the potential of the region and extend the reach of their offerings.

Through a licensed broker, local residents may trade currency pairs and more complex financial instruments. Some intermediaries allow you to access the market with as little as $10. Here is how to use this opportunity wisely.

Modest deposits are a reasonable way to begin. Inexperienced traders are strongly advised against large-volume trades until they learn the basics. Once you feel confident analysing trends and managing positions, volumes depend on your ambitions.  Ten US dollars is all you need to open a special type of account. In the FXTM system, these are referred to as ‘cent accounts’.

Specific Features of Cent Accounts

Details of such offerings differ from broker to broker. Aside from modest deposit requirements, the scheme has other notable distinctions. These may include:

• maximum number of orders
• maximum volume in lots
• a limited number of trading instruments
• specific spreads, and
• leverage conditions

Accounts are most commonly denominated in US cents, Euro cents, GBP Pence. Through the leading mt4 broker, residents of Nigeria may open cent accounts denominated in the Nigerian kobo. In this case, the minimum deposit is NGN 2000. In terms of structure, there is little difference from other types of accounts in the Forex system.

Origins of the Arrangement

First trading accounts denominated in cents appeared over a decade ago. In 2006, the LiteForex company became the pioneer in the field. At the outset, the novelty was seen as a tool for development and testing, rather than live trading. Later, the idea gained traction and was adopted by more and more brokers worldwide.

Today, cent schemes are included in offers of leading international brokerage brands. They are perceived as intermediary steps between risk-free demo trading and live trading, where high profits may come with high risks. After neophytes practice with demo accounts, they ought to exercise caution with their trading volumes. Cent accounts set reasonable finance limits that restrict potential losses.

On the one hand, a cent account allows you to start live trading, but keep the risks low. On the other hand, you get used to seeing four- or five-digit sums on your balance (as it is denominated in cents). The lowest acceptable position can be merely 0.01 of a standard lot.

Key Advantages: Overview

The primary benefit is obvious: you do not need much money to start trading on the global markets. Rookies who have only just learnt the ropes may open real positions without putting much at stake. Success on Forex does not come randomly: it is achieved by those who are willing to learn and practice.

This also means that entry to the market is affordable to anyone. For example, with a minimum deposit of USD 10, you can open positions for USD 10,000 (with 1:1000 leverage). Meanwhile, all the top features of the platform, such as instant trade execution, are available.

Secondly, thanks to leverage, it is possible to increase one’s purchasing power. For instance, FXTM offers different ratios based on your experience and knowledge. These range from 1:25 to 1:1000. With the most generous offer, you can trade a volume which is a thousand times bigger than your deposited sum.

Thirdly, your losses are minimized. Even though you will be engaged in live trading, you cannot lose more than you invest. All these advantages make cent accounts preferable for those who are only beginning their currency exchange journey.

Word of Caution

Do not disregard the importance of demo accounts. Do not venture out into real trading before gaining sufficient experience in the risk-free simulated mode. Available on both MetaTrader 4 and MetaTrader 5, this system allows you to explore the software features in a completely safe environment.

Is There a Catch?

Of course, cent accounts may have their specific drawbacks in comparison with other schemes. For instance, the broker may cap the maximum trading amount or allowed size of positions. Spreads may also be notably different from the tightest offers.

These peculiarities may reduce the appeal for some, but the target audience will hardly be discouraged. After all, traders with limited skill or modest funds still have their gateway to the international marketplace, where the sheer volume of daily trades exceeds 6 trillion US dollars.