Competition among stock brokers always is a good news for the traders. Some require you to deposit a minimum amount when you open a new account. Later, depending on the terms & conditions, you may or may not have to maintain this minimum balance. However, there are a whole host of no minimum deposit brokers who provide you with an option to open an account without any initial balance (Zero Balance Account). It’s always better to opt for brokerages that offer no minimum deposit account as you can test broker’s platform and tools without having to commit any capital.
The list below shows the no minimum deposit brokers that allow you to open a fresh account without having to maintain any minimum balance.
Some of the stock brokerages require a minimum deposit. It is the smallest amount of money that you must initially deposit into a new brokerage account. The minimum opening balance is required to cover the baseline costs associated with setting up a new account and maintaining it thereafter. It is also referred to as "Minimum to Open a Brokerage Account". You should maintain this broker deposit; in case you go below the minimum, a fee is charged.
This amount depends on broker to broker, it may be as low as $0 to as high as thousands of dollars. Brokers with $0 minimum deposit include Tradeking, OptionsXpress, etc. Brokers with high deposits are Interactive Brokers with $10,000 minimum deposit; LightSpeed Trading with $5,000. But in general, most brokers have the minimum deposit between $500 and $2000. A no minimum opening deposit helps you to invest that capital into the market.
The decision to opt for no minimum balance account largely depends on what kind of trading you are looking to do. For some newbie traders, a minimum balance is bothersome because you have to put a considerable amount of money into the account. The traders are more happy to utilize this amount to invest in stocks. For traders who plan on investing regularly, this might be okay. Usually with minimum balance, some perks are given by the broker. So the trader should compare for yourself and figure out what you really want.