How seriously will your broker treat your account? Of course, it is unethical for a broker to offer small-sized accounts and then to treat them poorly. This is especially important if you add CFDs to your range of trading instruments. More money lets you participate in more markets. What if a valid trading signal appears on some new currency pair? You would have to skip it if you don't enough capital. How diversified can your trading be? With tighter balance restrictions, you can open just several trades simultaneously. Unfettered risking results in fast depletion of trading funds when a particularly long streak of losing trades hits your bottom line. At the same time, such prudent money management can rarely be practiced if your account size is too small. How big of a drawdown or a losing streak can you tolerate? Of course, putting only a small part of your account (like 1–2%) to risk at each trade is a good way to avoid deep drawdowns. With a $1 million starting balance, no such restrictions could impede your trading.
How flexible can you be in your trades with your account balance? For example, if you have a $1,000 account with a broker that offers just 1:10 leverage, even with micro-lots, you cannot tolerate trades with wide stop-losses and cannot open multiple positions. Yet, there are independent parameters that make some account sizes more viable than others. Someone who can live on $100/month needs a much lower starting FX capital than someone who is living on $10,000/month. Obviously, the answer largely depends on the scale of earnings you need to sustain yourself. But where is the limit that separates 'just trying the taste of Forex' from 'serious trading to earn your payroll'? Of course, when you start trading with such a low capital, you cannot earn anything significant without resorting to pure gambling. Nowadays, it is normal for retail Forex brokers to offer trading accounts from as little as $1.
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