If you are a novice trader searching for which broker you should patronize, there are quite a few things you have to consider. But the bottom line is that you want something that will not be too risky. You want to be rewarded despite not being able to put in too much capital. After all, your chances of failure are much higher when you are starting out, so you want to be able to not lose so much.
The first thing you should then be looking for is the required minimum deposit. In the case of Plus500 minimum deposit is as low as $100. This is a relatively reasonable amount of capital to expect of someone who is just starting out.
Should you decide that Plus500 is for you, then the Plus500 minimum deposit will not be much of a hindrance to you trying them out.
Plus500 minimum deposit vs competitors
Does Plus500 match the competition in terms of having a low minimum deposit?
Among the major competitors, Plus500 minimum deposit is at par with most of its competitors. Its minimum deposit matches that of iForex and XTrade, both also only require $100 to start trading. When compared to FXCM, Plus500 is much better, as FXCM requires a minimum deposit of $2,000, which is much higher, especially for novice traders.
Things get interesting when compared with some of a smaller players. Compared with brokers like AvaTrade, eToro, ETX, Markets.com, and FXCC, Plus500 matches them quite well, as they also charge $100 as a minimum deposit. Plus500 even does better than UFX, which asks for $500 from its traders.
While Plus500 is asking for a relatively low amount, it is well within the standard. But there are some brokers that are going well below the standard in order to attract more customers. These include Easy-forex, which only asks for $25 for its minimum deposit. OctaFX and HotForex both only require a rock bottom $5 minimum deposit.
Keep in mind that, even as a novice trader, there is a lot more to choosing a broker than picking the one with the lowest required minimum deposit. However, it does help that it will be easy to get started without too much risk.
Advantage of low minimum deposit
As mentioned, the low Plus500 minimum deposit helps novice traders who are just starting out with forex trading, allowing them to get a start without putting out that much capital. But a lot of seasoned forex traders also appreciate a low deposit, especially those who are trying Plus500 for the first time. The low minimum deposit will make it more likely for them to switch from a different broker.
Those trying out the Plus500 platform will also be interested to know that they have an unlimited demo account. This means that you can make a demo account and keep using it without any time limit or money running out. And once you learn the platform, you can make a smooth transition into a real account because you do not have to pay much to get one.