Which broker has the lowest minimum deposit - and why it barely matters

For beginners the minimum deposit is often the first criterion for choosing a broker. Here are the real
figures for four large brokers — and why it should not be the most important criterion.

Minimum deposits

• HFM — $0 on Cent, Zero and Premium
• XM — $5 on Micro, Standard and Ultra Low
• Exness — from $10 on Standard, Standard Cent and Pro; $1,000 on Raw Spread and
  Zero
• Vantage — $50 on Standard STP and RAW ECN; $500–3,000 on Premium Unlimited

Source: the account-type tables on each broker’s page at Backcom VN.

Why the number matters less than you think

A low minimum deposit does not reduce risk. Risk comes from the size you open, not from
the amount you deposited.

A $5 account opening 0.1 lots of EUR/USD is risking $1 a
pip — 5% of the account for every pip against it. It is gone in minutes. That same size on a $5,000 account
is 0.02% a pip.

Put another way: a low threshold helps you start, not survive.

The numbers actually worth comparing

Three things determine cost, and none of them is the minimum deposit:

• The real spread in the hours you trade — not the
  advertised spread.
• Commission, if the account type
  charges it.
• The rebate on that specific account
  type.

Convert everything into dollars per round-turn lot after the rebate, then multiply by your
real monthly lots.

What a low threshold is genuinely useful for

It has one clear use: the step between demo and a real account.

Demo cannot teach psychology, because the money is not real. But jumping straight to a $5,000 account makes
the first lesson very expensive. An account of a few tens of dollars at HFM or XM fills exactly that gap: the
money is real so the psychology is real, and the cost of the learning phase stays within what you can
absorb.

A note on Cent accounts

All four brokers offer a Cent account. It suits practice, but know this in advance: because the
converted volume is so much smaller, the rebate you
actually receive on a Cent account is close to negligible, however high the published per-lot
figure.

This article is for information only and is not investment advice. Conditions and fee levels are published by the brokers and can change at any time — check with the broker you actually use. Leveraged forex and CFD trading carries a high level of risk and can cost you your entire deposit.