When I first started Forex trading I had £3,000, I actually had to borrow the money as a loan from the bank (I strongly suggest you don't do this!). If I had not borrowed the money, my account would have actually been a lot smaller, perhaps £200-£250. I now manage a number of trading accounts and have more money to trade with than I thought would be possible. Sometimes a lack of trading funds or a small account size puts people off Forex trading but let me explain why it should not and why having a smaller account size can actually be a great advantage and a blessing in disguise...
Small Trading Account #1 - Profitability is more important than account size
Do you know how many retail traders are profitable? It is often suggested that only around 5-10% of traders make money. From my experience I believe these figures are very accurate. Your priority should not be about how big your account is or how to accumulate more trading funds, your main (and perhaps only) trading priority should be to become a profitable Forex trader, this goal is a big enough challenge by itself. Once you are consistently profitable in your Forex trading, you will find ways to accumulate more trading capital. Please don't let a lack of trading funds get you down, focus on actually becoming a profitable trader first. If you had a large trading account but were not profitable in your trading, what use would all that capital be!
Small Trading Account #2 - The more you have, the more you lose
One of the biggest challenges for a lot of Forex and other traders is the emotional aspects of trading. Fear, greed and boredom can often influence us to make irrational decisions. If you had a large trading account these emotions would have an even greater psychological impact on your decisions - imagine the emotional attachment with risking $/£1,000 on a single trade, a BIG difference to risking perhaps $/£10 on a trade. Having a small account that builds overtime is so much easier, from an emotional perspective, than initially trading with a large account. I lost around 80% of my original £3,000 trading account, imagine if I had lost 80% of a £30,000 trading account... I may have never had the confidence to trade again.
Small Trading Account #3 - Trading smaller accounts is now possible
With the rise of spread betting providers (like IG, Core Spreads & ETX Capital) and the competitiveness that exists between Forex brokers, you can trade with tiny account sizes. Oanda offers their clients position sizes from as little as 1p! No matter if you have $/£10, $/£100 or $/£1,000, there is a broker and a brokerage account that will work for you. Gone are the days where you needed to meet minimum lot requirements to be able to trade!
Small Trading Account #4 - Your trading account can grow quicker than you think
From my experience, most profitable Forex traders can earn anywhere from 20%-100% return per year (sometimes less, sometimes more). If you have a Forex account size of $/£5,000 and can manage to return 50% per year, in 5 years you would have just under $/£38,000, in 10 years you would have nearly $/£300,000! Being patient can be a major part of successful Forex trading...
Small Trading Account #5 - Consider other alternatives
If you just can't see success without having a large amount of funds to trade with, become consistently profitable with what you have and then consider other trading alternatives. Dawinex is a broker that offers trading funds to clients if they are profitable in their speculative activities. There are also trading funds that actively seek traders but they do require proof of results, some also charge to cover training and application fees. SM Capital Trading Fund is my trading fund, please feel free to read more details by clicking here.
If you haven't already, please consider me as your trading mentor or take my Advanced Trading Course
If you need a Forex broker that offers New York close charts, I suggest AxiTrader. I also have a list of New York close Forex brokers and a list of FCA regulated Forex brokers on my website.