Binary Options and Minimum Deposit

Published: 5 August 2016 Updated: April 23, 2023

In the reality of the raging economic crisis, against the backdrop of falling incomes, few investors can afford to embark on binary trading with a large volume of funds. Besides, there is a purely psychological moment here - a beginning trader is to a great extent unsure of his abilities and is not ready to risk large amounts of funds. The initial capital amount is sometimes the main reason for the investor to refuse trading on the binary market. In this situation platforms offering minimum conditions for the initial trading deposit are the way out. Let's understand the optimal parameters of the initial account for binary trading and determine the advantages of the brokers that offer the possibility to trade on the financial market with minimum investment level?


Brokers with minimum deposits

At the dawn of binary trading brokers not too much thought was given to this problem. The reason is the lack of choice and limited competition on the brokerage market. Five years ago it was not uncommon to find brokers with the initial deposit of 500-1000 dollars, which by today's standards is a fantastic amount. Of course, professionals accustomed to operate with huge amounts of money may argue that there is nothing to do on the market with the minimum amount of investment. However, for the private trader carrying out processes not on an exchange platform and on means of a considerable quantity of investors, and by means of the broker's online-terminal it is difficult enough to invest huge sums. That is why companies with minimal trading account parameters have recently become the most attractive, and today it is possible to find brokers with the minimum deposit of just 5 rubles. Although many brokers require from their clients deposits from 300 USD and more. It should be noted that such parameters of the initial deposit are used by the scammers in pursuit of earnings. On this background, the minimum deposit with an investment range of 10-50 USD can confirm the safety of the broker. For example, a well-known brokerage company Binomo the volume of the initial deposit is set at 10 USD, logically believing that the investor will be able to invest any amount commensurate with its income, but at the same time, and gives the opportunity to trade with the minimum investment parameters.


Optimal initial deposit

Of course, it is most profitable for any beginner to invest the minimum of funds in binary options trading, that is why there is a tendency of increasing the number of clients at companies with deposits of 5 dollars or 50 rubles. But there are pitfalls associated with the mechanism of binary options and principles of binary trading profits. Only a small number of investors were able to achieve results on such minimal deposits. The matter is in high trading risks at an initial stage of trading and a small number of contracts, which allow making an initial deposit of such volume. So, this begs for advice: do not go for "free money" and choose platforms with comparable trading conditions. The following parameters can be considered as the optimal volume: the initial deposit should allow you to place not less than 10 contracts with the minimum cost in the market. In such regime it is possible to count on the result. That's why the Binomo broker company set the initial value of the contract at 1 USD for the initial deposit of 10 USD.


Minimum deposit as a means of money management

Another important advantage that the minimum deposit provides is the ability to apply the correct money management. A good ratio between the volume of the minimum account and the parameters of the initial value of the contracts significantly expands the trader's possibilities in the issue of applying the money management when achieving the result. By replenishing the account with minimum initial parameters a market participant can independently regulate the volume of funds on it and amounts used for execution of transactions. In this mode application of classical rules of money management - risks at the level of no more than 5% of the amount of trading funds becomes a simple and, at the same time, effective means of preservation of investments.

In conclusion, let us summarize. A minimal deposit with optimal parameters, like those of the broker Binomo, allows you to apply the money management in binary trading effectively. trading beginnings with a small amount of investment and is proof of the safety of the broker.

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