Foreign-exchange (forex) trading consists of the buying and selling of world currencies, and its marketplace is among the most liquid in the world. The unique aspect of trading forex is that individual investors can compete with large hedge funds and banks - they just need to set up the right account. Capital Requirement Most brokers require standard accounts to have a starting minimum balance of at least $2,000 and sometimes $5,000 to $10,000. Loss Potential Just as you have the opportunity to gain $1,000 if a position moves with you, you could lose $1,000 in a 100-pip move against you. This loss could be devastating to an inexperienced trader with just the minimum in his account.