Account minimums and margin rules vary from firm to firm. On the high end of the scale, one forex brokerage requires a minimum account size of $25,000 and offers 4 percent leverage, or 25:1 buying power. If the account falls below 75 percent of the minimum account level, the firm requires a wire transfer within two business days to bring the account above the 75 percent level.
A second firm has a $20,000 account minimum, 4 percent leverage and allows three hours for customers to deposit funds when they dip below the margin threshold. Like equity brokerages, both firms reserve the right to liquidate any position and freeze any account in the event minimum margin requirements are not met.
Many firms have much lower account minimums some don’t even have a minimum — and offer much higher leverage, often giving traders as much as 100:1 leverage (1 percent margin). In other words, traders can leverage $100,000 with $1,000 in their account. “A beginner’s guide to the forex market” has more information on margin in the forex market.
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