This guide reveals how to trade forex in UAE with smaller capital (AED 1000). In order to increase chances for profitable forex trading, the trader needs to follow a certain approach. This guide reveals the steps to get started, the best strategy to use when trading with a smaller investment, how to choose the right broker, how to use leverage and tips to help users increase chances for profitable trading.
How To Get Started With Forex Trading in UAE With AED 1000
Steps that help users getting started with forex trading in UAE with AED 1000 are listed below.
Step 1. Choosing a Reliable Forex Broker With Low Minimum Deposit
Forex brokers have different minimum deposit requirements. Traders need to select a broker with minimum deposit requirements below AED 1000 ($279). The following criteria should also be considered when selecting a broker for smaller investments: micro-lot account or cent account availability, forex trading instruments, fees (spreads and commissions), accessibility (web, desktop, mobile app), trading tools & platforms, research & education, regulation, Islamic accounts availability and customer support. The best forex brokers in UAE are listed here.
Step 2. Open a Trading Account
Micro-lot or cent accounts should be preferred when trading with smaller capital. These account types allow traders to trade with smaller positions (micro-lots and cents). To open an account users need to go to the broker’s official website, click the ‘’register’’ button, and fill in personal details (name, email address, address, and country of residence).
To open a trading account, the broker will also require proof of identity and proof of address. Proof of identity can be submitted through a driver’s license, passport copy, or copy of a national ID card. Proof of address can be verified through a recent utility bill or bank statement not older than 3 months.
Step 3. Define Trading Goals and Strategies
Forex traders need to define their trading goals and choose a trading strategy based on the defined goals. The most common trading strategies used by traders with low investment capital include day trading, scalping, swing trading and position trading.
Step 4. Back Testing Forex Trading Strategies With a Demo Account
Demo accounts allow traders to test their trading strategies using virtual money. They also allow traders to get in touch with the platform features which increases overall chances for successful trading. Traders with smaller capital should test their trading strategy before using it on a live account.
Step 5. Transfer Trading Strategy To a Real Account
Trading strategies that proved to be profitable on the demo account should be transferred to a real trading account (using real money). To increase safety and decrease chances of losing money, a micro-lot or cent account should be used first.
Tips To Help Choosing The Right Forex Broker For Trading With Smaller Budget
Choosing the right forex broker when trading with a smaller budget increases overall chances of making profit. Criteria that help choosing the right forex broker for trading with lower capital are listed below.
- Minimum Deposit. Brokers have different minimum deposit requirements. It is important to choose a broker with minimum deposit requirements that meet the traders budget limits.
- Availability of Micro-Lot and Cent Accounts. Micro-lot or cent accounts are trading accounts that allow traders to trade with smaller positions (micro-lots and cents). Forex brokers offering micro-lot or cent accounts should be prefered.
- Leverage. Traders with smaller budget tend to make use of leverage to amplify their trading positions. Brokers with higher maximum leverage should be preferred.
- Fees. There are two types of fees to be considered: trading fees (spreads, commissions) and non-trading fees (overnights, conversion fees, deposit and withdrawal fees). Brokers with low overall fees should be preferred because they increase profitability.
- Trading Platforms and Third Party Integrations. Traders with smaller budget have access to a wide range of platforms and integrations. Some of the most popular forex platforms are: MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, TradingView. When choosing brokers with the right platforms and integrations the following factors should be considered: knowledge level, trading style and trading goals.
Tips For Profitable Forex Trading With AED 1000
Tips that increase chances for profitable forex trading are listed below.
- Make Use of Risk Management Tools. Risk management tools help traders to minimize potential losses by identifying risks of their current trading positions. Some of the most common risk management tools include stop-losses, trailing stop-losses, take profits, position sizing and hedging.
- Make Use of Forex Trading Courses. Forex trading courses increases traders knowledge, confidence and increases chances for profitable trading. Courses and mentors are relevant for all types of traders: beginners, intermediate and advanced. Here is our list of the best forex trading courses in UAE.
- Make Use of Automated Trading Strategies. The most common automated forex trading strategies are forex signals and copy trading. Trading signals are buy and sell signals that base on technical indicators. They provide traders with price notifications and allow them to increase chances for profit by spotting profitable trading opportunities. Copy Trading is a trading strategy that allows traders to copy the trades of seasoned traders. Users can choose which traders to follow based on specific parameters and performances.
- Learning the Psychology of Forex Trading. Controlling your emotions while trading is crucial to successful forex trading. Emotions such as fear and greed often lead to bad trading decisions that can potentially lead to investment losses. It is important to stay disciplined and keep emotions out of the decision making process while trading.
- Make Use Of a Forex Trading Journal. Professional forex traders use trading journals to log their trades. This helps to identify flaws in trading strategies, tracking progress and fine tuning trading strategies. It is advisable to keep track of forex trades, either in digital form or in a paper trading journal.
How To Use Leverage When Trading With 1000 AED?
Trading with leverage (borrowed money from the broker) allows traders to trade with bigger positions than their initial capital. Traders with smaller investments can use leverage to increase their profitability. While it increases potential profits, it also amplifies the risk of potential losses.
Leveraged trading should only be considered on back-tested trading strategies that are profitable and have a positive risk vs reward ratio. It also requires the usage of risk-management tools (stop-loss, take profits, trailing stop-loss) to minimize potential loses.
Example of Leveraged Trading
A trading account with 1000 AED deposit allows 1:100 leverage, meaning that the trader’s trade sizes can be amplified by 100x. The trader can trade with 100,000 AED in total with just 1000 AED deposited.
When the trader opens a trade with 1:100 leverage, a small price movement can cause the los of the entire investment or amplify its profits significantly. When trading with leverage it is important to use appropriate risk management and implement a strict trading style that makes use of stop-losses and profit targets.
Some brokers force traders to trade with leverage if they don’t meet the so-called margin requirements. For this reason, we highly recommend comparing forex brokers and reading our in-depth forex broker reviews before signing up and making a deposit.
What Are The Benefits Of Trading Forex With Smaller Capital Compared To Other Investment Options in UAE?
Benefits of trading forex with smaller capital compared with other investment are listed below.
- Low Entry – forex trading does not require much capital to get started. The minimum deposits and trading positions for forex trading start with $1 on cent and micro lot accounts. This makes forex trading accessible to traders with less capital.
- High Potential Returns – Forex trading has the potential to generate high returns. It also allows trading with leverage which can increase profits exponentially also on smaller investments. This makes forex trading lucrative for those looking to take a risk.
- Accessibility for Low Trading Postions – Forex brokers enable traders to trade on so-called micro-lot and cent accounts, which allow them to trade smaller-than-usual position sizes.
This guide breaks down how to trade forex profitably in UAE with a smaller budget (AED 1000). It reveals how to choose the right broker when trading with a smaller budget and the steps to get started and tips to increase chances for profit.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.