How Much Capital Do I Need?

How Much Capital Do I Need To Start Investing?

One of the biggest mistakes made by beginning investors is to be undercapitalized. Having a small trading equity puts a lot of pressure on every trade, and if the equity (trading capital) drops due to early learning losses you may be forced to increase the percentage of your equity risked on each trade, with potentially disastrous consequences. Also the two-way (buy/sell) brokerage makes up a higher percentage of the purchase cost on a small trade, which makes it harder to turn a profit.

We would recommend a minimum starting capital of US$20,000 or the equivalent. If you have less than this sum you may be better off putting your money on deposit and continuing to save, while you paper-trade the markets to gain experience.