Best Forex Brokers with minimum $5 deposit

Retail forex brokers require a low minimum deposit to start trading a live Mini or Micro account. It’s also known as an initial deposit. The minimum deposit depends on which forex broker you use.

Mini and Micro forex accounts with low initial deposits are very popular with beginner traders. You can learn how to trade in real time and experiment with your trading strategy, but you minimise the risk of losing a lot of your own money because you trade with small lot sizes.

Choose your quick section of our Best Forex Brokers with minimum $5 deposit below.

Our 5 Best Handpicked Best Forex Brokers with minimum $5 deposit Revealed:

Alpari

Founded                              1998

Regulated                           FSC

Headquarters                    Mauritius

Tradeable assets               Currencies, commodities, indices, stocks

Trading platform              MT4, MT5

Trading desk                      ECN, STP

Minimum deposit            $5

Fxview

Founded                              2018

Regulated                           CySEC

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, indices

Trading platform              ActTrader, MT4, MT5

Trading desk                      DMA, ECN, NDD, STP

Minimum deposit            $5

HotForex

Founded                              2010      

Regulated                           CySEC, DFSA, FCA, FSA(SC), FSCA

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, indices, stocks, bonds, crypto, futures

Trading platform              MT4, MT5

Trading desk                      DMA, ECN, STP

Minimum deposit            $5

M4Markets

Founded                              2019

Regulated                           FSA(SC)

Headquarters                    Seychelles

Tradeable assets               Currencies, commodities, indices, stocks

Trading platform              MT4, MT5

Trading desk                      DD, STP

Minimum deposit            $5

XM

Founded                              2009

Regulated                           ASIC, CySEC, DFSA, IFSC

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, indices, stocks, futures

Trading platform              MT4, MT5

Trading desk                      No Dealing Desk (NDD)

Minimum deposit            $5

Why these forex brokers are best for beginner forex traders

These brokers are best for beginner forex traders because they are regulated by at least one Top-tier authority.  They are considered to be transparent, reliable and are safe to use by forex traders in Africa. These retail forex brokers provide a significant level of protection and they operate within policies, guidelines and standards stipulated by the regulatory authority in each jurisdiction.

In fact, traders of all levels of experience should only buy and sell currency pairs through a licensed and regulated broker. Forex trading is one of the most risky asset classes to trade on the global markets so why make it even more riskier by trading with an un-regulated broker?

Why it’s important to use a regulated forex broker

You can protect yourself by choosing a forex broker that is strictly monitored by a regulatory authority. These authorities exist to prevent and investigate fraud in the non-banking sector, keep activities transparent and to make sure forex broker clients are treated fairly, their funds are safe and data is secure.

Avoid using a retail forex broker that is not regulated. The forex market is the largest and most liquid asset in class and it does attract it’s fair share of fraudulent brokers and forex scams. This includes unwarranted commissions, loose spreads, hidden terms and conditions and withdrawal restrictions.

If you use an un-regulated broker and you have a problem, you have no recourse because there is no regulatory authority that you can report the issue to and get help. You don’t need to take the risk of trading with an unregulated broker because there are many licensed brokers who are well-established and offer a trustworthy, reliable service.

Benefits of low minimum deposits for forex trading

The main benefit of opening an account with a forex broker that offers a low minimum deposit is you can learn how to trade with a live account in real time without the risk of losing too much of your own money.

Starting to trade with a low amount means you can test the trading experience with the retail forex broker and experiment with your trading strategy without staking too much capital in the beginning. It’s a good idea to open a trading account with a low minimum deposit with several brokers and then you can choose the forex broker that you felt delivered the best trading conditions.

What is a Mini or Micro trading account?

A Mini or Micro trading account allows you to trade with a small lot size. For example, the mini lot size is one-tenth of a standard lot of 100 000 units, or 10 000 units. This means one pip of a currency based in US Dollars is equal to $1 as opposed to $10 for a Standard lot.

A smaller lot size is best for beginners because they can learn and experiment with the broker’s trading platform while managing their risk. Smaller lot sizes give you greater control over the size of positions which is important when you are a beginner trader.

Many brokers these days don’t offer a Mini or Micro account. You are only offered a Standard account with a lower deposit but not as low as one of those accounts. If that is the case, choose a forex broker that offers a Standard account with a reasonable minimum deposit for the same reason as discussed; to minimise your risk while you are a beginner trader and testing your trading skills.

Why do beginner traders use a free demo account?

Beginner traders are encouraged to start trading with a free demo account. This means you can learn to trade and get to know how a trading platform works with virtual money, rather than real money. This is the best way to avoid losing a lot of your own money in the beginning while you are learning how to trade forex.

While a demo account is a good option for beginner forex traders, it doesn’t give you a real trading experience. When you have nothing to lose financially, you can trade without letting your emotions get in the way. When you trade with your own money, that is when emotional trading happens and traders can lose a lot of money in volatile trading conditions.

Acquaint yourself with forex trading on a demo account and then move onto a Mini or Micro account with a low initial deposit. Once you feel confident with the trading platform and you’ve fine-tuned your trading style, you can move onto trading with a Standard account that requires a higher minimum deposit.

FOREX TRADING AFRICA DISCLAIMER

Forex is a complex instruments and trading forex involves a high risk of losing money rapidly due to leverage. You need to understand how forex trading works and decide whether you can afford to take the risk of losing money on trade orders that do not go your way.

Forex Trading Africa annually reviews brokers regarded as the best in the world and provides information on the products, fee structure, market analysis and service they offer. We aim to provide important information for you to base your decisions on when choosing the right forex broker for your needs.

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