Binary Option Brokers Online Trading With No Minimum Deposit

Day trading today is so different then what it was back when I first started trading in 1989. In those days, most trading was done in what is known as a Trading Pit, where securities and commodities were bought and sold via ‘open outcry’.

Like in the film’ Trading Places’ with Eddie Murphy and Dan Aykroyd, where you see all these people in different colored jackets shouting and waving their hands (called Floor Traders), surrounded by electronic price displays and news monitors.

When you wanted to make a trade, whether it be appointed for a day trade or longer, you would take your telephone and call your broker, who would take your order over the telephone and then, after confirming the order back to you, would relay it to someone else and finally end up in the hands of one of these Floor Traders. The Floor Trader would then attempt to fill your order in the Trading Pit, and if filled, relay that information back to your Broker who would then call you back with your fill.

But, I digress….

When it comes to Day Trading, where you need to be in and get out of your trades quickly, the old way wasn’t very efficient and at times frustrating and costly. A lot can happen in the time it takes for orders to arrive at the Pit and come back to you as a fill.

With the improvement in communication technology as the twentieth Century was drawing to a close, Electronic Trading (aka eTrading) became more prevalent and available to the every day trader. Buy and sell orders could be placed instantaneously with just a click of your computer mouse. If your price is met, you could be filled before your hand even moved away from your mouse.

Electronic Trading is arguably responsible for the great reduction in trading costs (commissions) seen over the years, and the increase in Day Trading activity. Not only can Day Traders make quick trades, but their cost per trade is also much lower than years before. Today, anyone with a small amount of disposable funds (never use money you require to live on) can get setup and start Day Trading.

Binary option brokers online trading with no minimum deposit

This is among the most asked question by individuals looking to get into trading. It is also one of the more difficult questions to give a black and white answer to.

The amount of money needed to start Day Trading really depends on several variables. What are you interested in trading? The (discount) Broker you decide to open an account with. The style of trading you wish to do.

Day Trading in the Stock Market isn’t really suited for beginners. Recent regulations require that you deposit at least $25, 000 in cash or securities with your brokerage before you can day trade securities.

The Futures and Commodity markets offer Day Traders better access to day trade for a much smaller deposit. Depending on the brokerage, you can open a futures account for as little as $2, 500, although many require at least $5, 000 to $10, 000. This isn’t the same as ‘margin’. This is the minimum amount of capital you gotta have in your account, with a view to trade a particular a futures contract. The margin required depends on the market being traded and the current rate of volatility. For example, to trade a single Live Cattle futures contract may require that you’ve an’ Initial Margin’ of $1, 650 in order to open the trade, and it mustn’t drop below $1, 200 which would be your’ Maintenance Margin’.

In recent years, the FOREX (Foreign Exchange) currency trading has taken the trading world by storm. With access to free price data and trading platforms, lower minimum account balance requirements, no commissions (brokerages make their money via the ask/bid spread), and flexible trading unit sizes, it has proven to be among the best options for anyone looking to get into Day Trading with less capital requirement.

Just a few ticks can mean several hundred dollars (profit or loss) for most contracts traded with futures trading. If you’re just starting out and your account balance is only $3, 000 to $5, 000 (or even $10, 000, which isn’t that much in futures), you’d be seeing moves of 10% of your account within minutes! It is great when your timing is good and the market is heading in your favor. It isn’t so great when your timing is off by just a little and it’s moving against you. It can be very hard to succeed with this type of leverage in futures with a small account, for a Day Trader just starting out.

In the FOREX markets, however, you only need to strike a FOREX brokerage that provides you with the flexibility of decreasing your unit size. While new regulations has tightened up the leverage available to traders (I.e. 250:1, 100:1), being able to adjust your unit size makes it possible for traders to trade pip sizes (think ‘ticks’) that are even less than a dollar each. Some brokerages have ‘no minimum deposit’ requirement to open an account. Your only restriction for trading a currency pair is the amount you have on deposit with regard to the unit size you have decided to trade, due to margin requirements. So if you’ve got a small amount in your account (say just $200), simply adjust your unit trading size down so that you meet the margin requirement. While a small pip size will not make you large profits during a single trading day, it also means you can avoid large losses as well. And if your day trading experience grows to where you’re making consistent profits, those small gains can add up to increase your account size. With your account size increased, you can adjust your unit size up accordingly.

So if you’re interested in getting started in day trading, if you decide to trade in the FOREX markets, you can do so for very little money.