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A minimum deposit is a certain amount that many brokers require as a minimum when the trader makes a deposit to his trading account. The amount of the minimum deposit is as varied as the brokers’ offer and can, in principle, be in almost any range. For example, there are many Forex, CFD and Binary Options brokers who require a minimum deposit of 100 Euros or less. On the other hand, there are also many providers whose minimum deposit ranges from 1,000 to 10,000 euros. In this case, the broker is usually geared towards professional trading with experienced traders, for whom such a high minimum deposit is no obstacle. In the following, we would like to go into more detail about the minimum deposit as such and inform ourselves about the minimum deposit required by the Broker 24 option and the conditions it may depend on.
Minimum deposit or minimum deposit with many brokers
If you look around Forex, CFD and Binary Options brokers today, you won’t find many providers that don’t require a minimum deposit at all. In most cases, at least an amount between 100 and 200 Euros is required, which must be chosen as the minimum deposit to the trading account. Most experts assume that brokers demand such a minimum deposit, so that traders do not deposit, for example, small amounts of 10 or 20 euros into the account. In this case, the administrative effort for the broker would probably be too high, because of course every deposit on the trading account must be booked and partly also checked.
Therefore, the minimum deposit can certainly be compared to a minimum loan at banks, where, for example, instalment loans are only granted from 3,000 euros upwards. For cost reasons, the minimum deposit certainly makes sense from a broker’s point of view, while some traders often choose another provider, especially if the minimum deposit is relatively high. This is of course also true for brokers for binary options such as 24option. Therefore, every broker should certainly consider how high he sets the minimum deposit to be made with him.
Minimum deposit often smaller than required deposit
In quite a few cases, for example, the Forex broker may specify a minimum deposit, but the trader must deposit an amount higher than this minimum deposit anyway. When trading currencies, for example, a minimum transaction volume must always be observed. In combination with the leverage that the broker offers to his customers, it follows that the trader must invest at least 300 Euros of his own capital to be able to meet the minimum transaction volume. If the minimum deposit with this broker is 100 euros, the trader would have to deposit three times as much money into his account anyway to be able to trade at all. With relatively low minimum deposits, it is therefore common practice that these are often fulfilled automatically by the trader if he wants to trade actively.
However, there are also some brokers who require a comparatively large minimum deposit. Mostly this applies to so-called premium accounts, which are especially reserved for professional and institutional clients. In this case, customers do not find it a hindrance either that the minimum deposit must be, for example, 5,000 or 10,000 euros. For the ordinary private customer or hobby trader, however, such a high minimum deposit is usually too great an obstacle, so that either another broker is chosen or the customer can choose an account with the same broker, which is associated with a lower minimum deposit. In any case, it is often the case that brokers offer several types of accounts and, depending on these, different minimum deposits are required.
Minimum deposit vs. minimum transaction amount
If you are a trader thinking about trading in Forex, CFDs or Binary Options for the first time, you are obviously not yet familiar with the various technical terms that are often mentioned in this context. Therefore, there is sometimes a danger of confusing especially the terms minimum deposit or minimum trading amount. However, especially when trading currency pairs, CFDs and Binary Options, there is an important difference between a minimum deposit and a minimum trading amount. This is best illustrated by the example of Broker 24Option. This is because it requires a minimum trading amount of just 24 Euros when trading binary options, while the minimum deposit is between 250 and 50,000 Euros, depending on the payment method and account type chosen. In this respect, it is extremely important that you know the difference between minimum deposit and minimum transaction amount or minimum trading amount.
The minimum deposit with Broker 24Option
Broker 24Option is also one of the providers that require a minimum deposit or minimum deposit to the trading account from their clients. Currently, this is 250 euros. However, if you would like a different type of account, for example to obtain better returns, the minimum deposit will be higher.
Overview of minimum deposits for 24option
|Minimum deposit||250 USD||2.000 USD||25.000 USD||50.000 USD|
|Return||up to 82%||up to 82%||up to 84%||up to 86%|
In this case, of course, the respective account types differ not only by the different returns, but also by numerous other additional services such as individual advisors, trading signals, or the trading of other products such as Forex or CFDs.
Furthermore, the different payment methods at 24option are linked to different minimum amounts. As is well known, the broker offers four alternatives, namely credit card, bank transfer, Skrill and Neteller, whereby the latter payment methods are summarized under the generic term electronic deposits.
For each payment method, the following are the minimum deposits that you must be aware of before depositing money into your trading account:
- Bank transfer: 1,000 Euro
- electronic deposit: 250 Euro
- Credit card: 250 Euro
If your account is not in Euro, but in another currency, you must of course observe the minimum deposit that applies. However, this is roughly the same amount that you must pay attention to when making a deposit in euros. For example, if you make a deposit by credit card in pounds sterling, the minimum deposit is 250 pounds.
Conclusion on the minimum deposit with Broker 24Option
You will find the minimum deposit with the vast majority of brokers today, including the Binary Options Broker 24 option. However, the amount of the minimum deposit does not depend on different account models, but instead the broker makes the amount of the required minimum deposit to be made on the trading account depend on the payment method used. You will have to pay attention to a particularly high minimum deposit if you decide to make a deposit by bank transfer. In this case, the minimum deposit you must make to your trading account is no less than 1,000 Euros. The deposit amount can be considerably lower if you choose to deposit by credit card or by Skrill or Neteller. In this case, the minimum amount you should deposit to your trading account is 250 Euros.