Minimum Deposit Broker in South Africa

Broker with Low Minimum Deposit in South Africa

Everyone starts trading somewhere, and for most of us that means beginning small. The wonderful thing about technology and global competition in 2020 is that there are now a wide variety of options to get started trading at a very low entry fee. There are several factors that go into a broker with low minimums, each playing a role in not just the costs involved but also the overall experience.

Let us first explore the components that go into some of the top brokers with low minimum deposit, and how their deposit amounts are affected. From here we can look at IQ Option and all it offers traders, to be one of the top choices when it comes to micro deposit trading.

 A Look at the Costs Involved

On the face of it, the deposit involved is a vital part of picking a platform to trade on and through. However, there can also be a number of other costs involved when starting out and being aware of them, especially in relation to the deposits, can be very beneficial. Let’s look at a few of these possible options.

  • Low Investment Sizes - Besides the smallest deposit, there is an individual minimum investment with the different platforms out there. Ensuring that the chosen broker also has these minimums as low as required will be worthwhile, especially before any deposits are made. This can play a hand in the amount of strategy traders can employ as well.
  • Regulations - Like with any trading platform, there are different regulations. These regulations are also dependant on location. Some of these regulations may change the sizes of deposit required but they are also able to alter the leverage of these platforms.

Beyond this they also prove reliability with the different brokers, ensuring that the security is up to the necessary tasks at hand. Without these regulations in place, traders are only risking their own money and potential losses. All of this can be avoided though, if traders check that they have these sorts of regulating bodies attached.

  • Leverage - This serves as a ‘multiplier’ that can increase the investment potential of traders, either supported through other investors or sometimes the broker itself. Brokers of this nature are called money makers and provide this leverage so that traders starting out small can quickly grow their investment potential. 

As can be interpreted from such a circumstance, there are inherent risks to employing leverage into trades. This is because there is simply more at stake, for return but also loss.

  • Interest and Commission - There are often hidden costs attached to some of the steps involved with trading across these platforms. Some of these are inevitable, others are a little more excessive and can be avoided with the right brokers with minimum deposit. With these sorts of costs, it is probably good to adapt it to the way it is going to be used.
Best brokers with low minimum deposit
Best brokers with low minimum deposit

 Advantages of a Low Minimum Deposit

Before we jump into the variety of minimum deposit brokers available, let us take a peek at the various advantages to using a lower initial amount. While some may perhaps be intuitive, it is worthwhile reminding oneself of the upsides to finding these different brokerage options.

  • Experiment - The benefits of lower deposits means that traders are able to test out the broker for a lower general cost. This will allow experimentation across different brokers as well as across the same broker. This can also enable experimentation with new strategies and other alternative trading options as well.

One of the only ways to discover some of these tools and trading options is through experimentation. With a low deposit, the option of trying things out becomes rapidly more available to a majority of traders looking to do just that.

  •  Less Risky - There are a number of parts of a trade that can carry some degree of risk. In this regard, the lower the deposit constraints, the lower the potential risk for the trader. The same applies with the number of investments. Often times, traders can get carried away with the number of trades they can make.

When a smaller deposit is used there are less choices to make that many investments, meaning that traders will watch their investments more carefully. This makes the trades both more likely to succeed because more time is put into making them but also reduces risk because they can better be tracked and sold if necessary.

  • Increased Attention - Similar to the previous factor, this refers to the number of manageable trades before a trader might lose focus on any trades they might be making. With low deposits this inherently limits the number of trades that can be made at any one time. If traders can’t place excessive trades elsewhere, then they will likely push to have those minimal trades they make as accurate as possible.

This makes smaller numbers more preferable and also more successful because the entire strategy can be built around these. Not to mention that traders using smaller deposits will likely spend more time ensuring they don’t lose money frivolously on more risky trades. Sometimes a little more focus can make a major difference to the whole approach.

  • Less Costs per Trade - With some of these best brokers with low minimum deposit platforms, there can be costs attached to making trades. If traders are making less trades in general, then there will be less costs from these possible added fees. This is where platforms such as IQ Option really excel with their no cost fee toward making trades.

That being said, sometimes the costs aren’t purely monetary, with a good deal of time and energy being soaked into making an informed trade. In this regard, reducing the number of trades makes the efforts easier and more streamlined.

  • Practice - This one perhaps seems a little obvious but is still very much worth mentioning. Like with anything really, the more time spent practicing, the more improved the craft will become. Lower deposits could mean more goes at getting the hang of whichever platform but also an increased number of trading attempts in general.

With each attempt there is valuable information gained. The old rule of 10 000 hours springs to mind, and how it takes a long time for anyone to truly get the hang of a process. To become a master there are certain steps that need to be followed, and trial through practice is just one of them.

Practice. Video tutorials IQ Option
Practice. Video tutorials IQ Option

 The Best Small Deposit Broker for South Africa

There are a lot of diverse trading platforms available across the global exchange called the internet. Each of these have a range of alternative options, varieties and useful advantages. With many of these, the deposit also ranges wildly, meaning that it is worth investigating to see what piques interest and what does not.

Sometimes though, it is preferred to get as much of a full picture first, and then experiment. In this pursuit we can look at the inner workings of this legit forex broker with low minimum deposit. IQ Option has a comprehensive arrangement of aspects that make it a full and involving trading platform.

 IQ Option Explored in Detail

On any list of forex brokers with low minimum deposit, this trading option must be involved. As one of the younger trading platforms on the high end of the market, founded in just 2013, this one had a lot to prove with the level of competition already available. This is exactly what it has done, and now rivals the best of the best.

Like the other top trading platforms, IQ Option involves a good number of reputable regulations from top regulatory bodies. This enhances its reputability as well as allows for traders from many parts of the world, very much including South Africa, to join in the action.

There is also access to a wide market variety on this platform, alongside other interesting things that binary options brokers are involved with. These binary options are trades made with only two possible outcomes, providing the traders with an easy to understand circumstance. 

For IQ Option the lowest deposit option is just $10, which can be higher than some other brokers with minimum deposit from 1-5 dollars. However, to put it back on top, they have coupled this with a great spread and a low minimum investment range of just 1 dollar. This makes getting started much easier, since traders can go as low as necessary to experiment with the options.

With such a low range for investments, this platform gives traders a unique environment for traders of all varieties to get started immediately. One such thing that makes a big difference, especially with the low deposit, is that of the leverage provided. This allows traders to leverage their own investments to rapidly increase return potential, while simultaneously increasing risk.

With a leverage of 500:1 on IQ Option, there are indeed ways of rapidly growing any investments. On top of this there is a free demo account option that allows a refillable $10 000 dummy account that traders can exploit for practice. This makes the leverage provided even more worthwhile as traders can first practice the trades they want to try and then leverage their low investments for more potential return.

This demo account is actually a very remarkable asset in terms of reducing the costs of trading. This is largely since traders can experiment and practice the various available trades and get used to the necessary ones. From here they can explore the markets and find the spreads and assets they find most appealing, all before placing any real money down.

As mentioned above, there are often hidden costs involved that can hike up the overall expenditure for the traders involved. Fortunately, with IQ Option there are no additional fees attached to the actual process of trading, a rare exception to the more common status quo. This means that traders can trade as often as they like, in the smallest possible amounts, without having to pay anything more than the investment.

Where IQ Option might involve costs is regarding withdrawals and swap fees, with the latter being the extra costs of holding trades overnight. For day traders this is a not very important, but can still hold merit should the situation call for it. As a rule of thumb when it comes to this trading platform, most of the costs are toward traders making a profit, of which an increment goes to the broker for the service provided.

Due to their focus being on making traders successful, they also provide a range of different trading tools to help in this effort. This makes the option of fewer, more decisive trades a very real one. The added benefit here is that traders will ideally focus more on the fewer trades and put greater relative effort into each one.

The result of a more diligent approach is that better strategy can be employed alongside more dedicated time. Fewer trades but with greater winning percentage is definitely better than the alternative. South African forex brokers with low minimum deposits come in all shapes and sizes, but few have the sheer capacity that this one provides to its users.

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