Investing Trading Forex Trading Can You Trade Forex on a Budget? Many investors have started out small. By John Russell Updated on June 30, 2022 Reviewed by Anthony Battle Fact checked by Hans Jasperson Fact checked by Hans Jasperson Hans Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. learn about our editorial policies Photo: Westend61 / Getty Images If you've been studying forex trading or even if you're brand new to it, you might be wondering if you need a significant stash of extra cash set aside before you begin trading. Is it possible to do forex trading on a budget? Actually, it is, but it takes a lot of planning and some discipline if you want to start out without a large bankroll. Educate Yourself The first thing to keep in mind is that you'll need to know a little bit about what you're doing before you wade in. Whether you once had a decent forex trading account that crashed, or you're just starting out with no experience at all, you'll want to educate yourself on forex basics first. Get acquainted with risk management and other basic forex concepts before you commit any money to a trading account. If you already have an existing account, you might want to withdraw some funds to spend on learning resources. A great resource to educate yourself is the collected readings for those sitting for the Chartered Market Technician (CMT) exam. The CMT Level 1 Curriculum is the definitive text for technical analysis, the mainstay of research for forex traders. It is an excellent place for the serious and aspiring forex trader to start. It will introduce you to in-depth money management advice, advanced analysis techniques, and—best of all—how to talk trading with the professionals who work with banks or established funds. Even if you don't buy the book, find a way to get exposure to those who are trading well and who have an established track record. Start Small Starting small means starting really small. You can't have success at trading for dollars until you've mastered trading for pennies. One broker that will allow you to do this is Oanda. You can open a trading account with this broker with literally just a few dollars. Invest Regularly Start investing on a regular basis as you refine your craft. Add $5 or $10 a week to your account. It doesn't sound like much, but regular investing over time, along with your compounded gains, can grow quite a sizable account. The best part is that it won't even hurt. You won't lose the last of your savings on a trading stunt that you thought was a sure thing. Be Patient Forex is all about patience. Starting small might seem slow and frustrating, but it will keep you disciplined. Trade small and view everything in terms of percentages rather than dollars and cents. If you have a gain of $1 with a $10 account, that's a 10% gain—not too shabby. If you lose $1, you've only lost 10% and you've learned a lot. And the whole experience only cost you $1. Profitable investing takes time to learn. There isn't anyone out there who was excellent at it on their first day. Investing small on a regular schedule can help you combat some of the major hurdles involved in learning forex trading. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. CMT Association. "CMT Level I."