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How Much Money Should You Invest When Using A Trading Platform?

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Any shrewd businessman or woman knows the scale of the foreign exchange market and the forex investment and trading opportunities which come with it. When you're first starting out, however, you may find yourself faced with several daunting, unanswered questions. The most common question people ask is how much money they should invest when using a trading platform.

Our trading platforms

Now before we can tackle this question, let us first introduce you to the two trading platforms that we offer at ICM Capital. Once you know which platform suits your needs best, you can then decide on how much you plan to invest. The MetaTrader 4 platform is an independent trading platform that was developed for trading Foreign Exchange, CFD products and Futures Contracts. MT4 offers a demo and a live trading environment depending on traders levels of experience and is undeniably one of the most recognisable and reliable online trading applications available. MT4 allows you to obtain fast, tight prices when trading Foreign Exchange, CFDs and Futures Contracts based products such as gold, silver, oil, commodities, US stocks and indices. MT4 is compatible with a PC, Mac, Android and iPhone/iPad. We offer the ICM Direct trading account, which accumulates liquidity from major Tier 1 banks and top liquidity providers within one platform. This allows for the speedy execution of trading orders without additional slippage for optimal daily trading activities. The minimum deposit when opening a trading account is $200, so you really don't need to invest a lot over and above that. It is always wise to start out cautious and invest more as your confidence and understanding grows.

Create a demo account

How much money you choose to invest is ultimately a very personal decision. What we would suggest, however, is to first open a demo account as this will prove very helpful in your decision making. Yes, that's right, ICM Capital gives you the opportunity to first trade with 'pretend' money through your demo account, allowing you to get a feel for the platform. Only once you feel comfortable with how everything works, you can confidently switch to the real deal. We believe that you need to gain a practical understanding of foreign exchange trading and forex investment and thus, through your demo account, you can experience what it's like to trade the forex market without risking any capital. Once you see how your 'profits' begin to grow (or you could, of course, lose money here as well), you should be able to gauge how much real money you want to invest when you first start out. There really is no better way to educate yourself about financial products and figure out how to make the best entry decisions.

Risk management tools

With ICM Capital we offer you a limit order as well as a stop loss order. A limit order places a restriction on the maximum price to be paid or the minimum price to be received. A stop loss order sets a particular position to be automatically liquidated at a predetermined price in order to limit potential losses should the market move against your position. These are great risk management tools in forex investment, especially if you're worried about losing all your money right off the bat.

ICM Capital Prepaid MasterCard Card

We also offer the ICM Capital Prepaid MasterCard Card which is linked to all your trading account and instantly provides you with access to your funds whenever you choose. You can link it to your bank account so that you can pay with your funds, at any given time. Best of all, you have access to your funds immediately and whenever you need.

If you'd like to access the global financial markets from the comfort of your home, then investing via a trading platform through ICM Capital could be the right choice for you. No one can tell you 'how much' you should invest in your trading account via the trading platform. What you need to do is consider everything we've discussed so far, which means deciding on a trading platform and broker that you think will work best for you. Then give it a go using your demo account; experiment with different amounts and see whether it's best to play it safe with smaller amounts or you’re experienced enough  to go in with big numbers. This will reduce the risk of you losing money when you open your actual account. The fact that we offer risk management tools like limit orders and stop loss orders, means you can manage your risk and money better, so this must also be taken into consideration. Ultimately, however, it will come down to a personal choice, based on who you are, and what works best for you. Yes, forex investment can be a little tricky, but once you've started trading forex on the demo account and studied the mechanics behind being a responsible trader along with mastering good risk management tools, you will quickly catch on, and soon, you too can be that financially aware businessman or woman you've always aspired to be.

For most traders, success is not something that simply falls into their laps. It has to be earned in order to be learnt with a lot of hard work and time. The key is to trade responsibly. Remember trading CFD's or Spot FX carries a high risk to your capital and can result in losses that exceed your deposits. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must make a decision on what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

For most traders, success is not something that simply falls into their laps. It has to be earned in order to be learnt with a lot of hard work and time. The key is to trade responsibly. Remember trading CFD's or Spot FX carries a high risk to your capital and can result in losses that exceed your deposits. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must make a decision on what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

For most traders, success is not something that simply falls into their laps. It has to be earned in order to be learnt with a lot of hard work and time. The key is to trade responsibly. Remember trading CFD's or Spot FX carries a high risk to your capital and can result in losses that exceed your deposits. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must make a decision on what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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Trading CFD's or Spot FX carries a high risk to your capital and can result in losses that exceed your deposits. CFDs and Spot FX are leveraged products. Trading CFD's or Spot FX carries a high risk to your capital and can result in losses that exceed your deposits. You should not engage in this form of investing unless you understand the nature of the Transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based.