How to Easily Get Trading Capital to Fund Forex Account

There is no fixed trading capital a Forex trader is required to deposit in a Forex trading account. The amount is determined by many factors, such as the type of trader you are, your trading style, and expected returns on investment.

For example, a day trader or a scalper can find it comfortable to trade with $1000 while at the same time, the amount can be too little for a position trader.

To decide on how much capital you need to start trading with, do the following:

1. Identify what type of trader you are. If you are a short-term trader, you may trade comfortably with $1000 or more. But if you are a long-term trader, you need a higher amount of money so you can manage your risk portfolio well.

2. Do a simple calculation to determine how much money you want to make over time. If you are comfortable with $300 monthly, ask yourself how much money you need to invest in Forex to get the $300 without struggling.

A trader targeting 5% monthly needs at least $6000 trading capital.

Starting a Forex trading business costs a lot of money and time. You need to invest in the following:

1. A trading device such as a laptop or desktop

It is not a must that you have a PC for you to trade Forex because you can install trading apps on your mobile phone or tablet. But to trade conveniently, it is recommended that you get agood laptopfor trading, which costs around Ksh 30,000 in Kenya.

2. A stable internet connection

Select the best company from a long list of internet service providers in Kenya. Companies with reliable internet connections in the country include Safaricom PLC, Zuku Fibre, and Faiba internet from Jami Telecommunications Limited. Other internet providers are Telkom Kenya, Airtel, and local community internet service providers.

Most companies charge around Ksh 10,000 to install a home internet and a minimum of Ksh 1000 monthly service fee.

If you add the above figures to your trading capital, you realize that you need over $1000 if you are a short-term trader and a higher amount if you are a position trader.

Besides money, obtaining Forex trading skills will take you time. You can learn the basics of Forex trading in less than a month but becoming a skilful trader takes time. Most successful traders confess that they started seeing results after six months, one year, and up to three years of learning and testing Forex trading strategies.

The amount of money you need to invest in Forex to be a full-time trader depends on your bills. Trader A can have a monthly bill payment of $300, while trader B has $3000 for the same period. The two traders need different trading capital to meet their monthly trading goals.

For example, trader A is looking to make 5% of their monthly investment. To pay their bills through the proceeds from Forex trading, the trader needs to invest a minimum of $6000. On the other hand, trader B should invest a minimum of $60,000.

One of the reasons why most Kenyan Forex traders cannot make Forex trading their full-time business is because they ignore these simple but essential Forex basics.

Yes, Forex trading is a good business, especially for people who have time to learn and can afford trading capital. But traders are advised to follow their trading plans religiously even if they have the skills and capital because Forex business is risky.

The amount you can make daily in Forex is not fixed. It depends on your trading capital, risk management, and how often you trade. In addition, you might make an amount of money today and lose it tomorrow.

That is why it is not recommended to calculate profits generated from trading daily. Instead, use weekly, monthly, quarterly, and yearly timeframes.

At OpWell Forex, we target a 5% monthly return. Using our trading goals, you can make a minimum of 5$ every month from a $100 account balance.

It is better to target a reasonable return and achieve it consistently than try to get a higher return and lose all of your investments.

If you do the maths, a trader with higher capital and low return on investment expectation can make a livelihood out of the Forex business.

Most rich Forex traders live a private life. Therefore, they are not in the public domain. Some of the famous and prosperous Forex traders in Kenya include Paul Mugenda, Wanjiru Gichangi of Forex Exploits Academy, Patrick Mahinge, and Joyce Wanjiru (popularly known as Madam Forex), among others.

Capital in Forex trading is the amount of money you invest in the Forex business to generate profits on a daily, weekly, monthly, or yearly basis. Depending on your broker, the amount can be as little as $5.

The best source of capital for Forex trading is salary. This is because salaried individuals do not depend on the profits from Forex trading to settle their bills during the early stages of the business.

Forex beginners must understand that not every source of capital is good for forex business. For instance, a trader who borrows a loan to use the money in Forex trading is likely to lose the amount than a trader who deposits a little capital and compounds it.

It’s true because trading with borrowed capital puts pressure on the trader to achieve a predetermined amount of money they can use to settle the loan.

Getting capital to trade Forex in Kenya is one of the biggest challenges new beginner traders face. That is because most people live below the poverty level due to a high unemployment rate.

Beginner traders who are lucky to be employed can get their trading capital from their salary. But for the high number who are not on a monthly payroll of any company or organization, you can get money from donations and contributions from friends and family members, personal business, inheritance, and Forex prop firms.