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Many people assume that in order to dabble in the financial markets it is essential to have bottomless pockets and enough spare cash to shame a millionaire. However, in reality, many traders start off by dealing in very small lots and slowly build up their financial reserves as they learn the trade.

Unlike other forms of financial trading, forex does not require the payment of costly broker fees or dealing charges; the whole commission structure is incorporated into the spread, i.e. the prices being offered for the buying and selling of the currencies. This allows traders to focus on the market without having to manually calculate how much they need to shell out in fees once the trade is complete.

Forex is ideally set up for beginners and as well as simulation accounts, offers novices the opportunity to enter the live market with a very small amount of cash. As little as $50 could set up a reasonable trading account to get you up and running.

However, even though the amounts may be small, the same principles apply. If you cannot afford to lose the money, do not trade with it. When you start trading, losses are likely to outweigh the gains as you learn from experience. It is therefore essential to be able to write the money off without causing severe financial hardship.

If you have a small amount of cash to trade with, you must have realistic expectations. Opening small positions known as micro lots will never make you a millionaire but is the perfect way to maximize your exposure to live trading without blowing lots of cash. Even if you open a winning position, any financial gains made will be small and you should trade with this expectation.

A good strategy while building up your forex experience is to regularly set aside small sums into your trading account, which will help to bolster your fund in the long term. Being patient while you trade with losses or wins of just cents can seem frustrating when others around you are discussing moves worth hundreds of dollars. However, everyone has to start somewhere and setting up good foundations will prove to be the best way to become successful in the longer term.

While it is possible to open an account with $50, or even $10 with some brokers, it is a good idea to free up a bit more cash if you can, without leaving yourself exposed to financial ruin. This is because the account will not be large enough to hold the position open for long periods, meaning that some traders could be forced into scalping which is less than ideal for novices.

Forex is a market that can offer everyone the chance to make profits if they are patient and build up their profile slowly. However, for anyone considering entering the forex market, before trading with serious money saving money should be the focus. Having a sum of cash, no matter how small, that you can afford to trade without fear of the consequences if you lose is the best way to start out in the market.