Initial deposit

Initial deposit
See also

Initial deposit it is a minimal amount of money needed to open a savings or investment account. It is something like a down payment to open an account.

Initial deposit means funds placed with a broker by a trader, as protection for taking on trading positions at the moment on opening an account or when they actually enter a trading position for which is needed a margin deposit. Usually, online forex brokers require an account only a low initial deposit for trades to open an account.

Deposit transaction[edit]

The first deposit transaction between a depositor and the branch may be placed into different types or time. Deposit accounts may be added together for the purposes of determining the dollar amount of the initial deposit, if that are held by a depositor in the same right and capacity. Domestic retail deposit activity means a assent by a State branch of any initial deposit of less than $100,000 [1]. The initial deposit was determined by branches established before September 17, 1978. It is very important to determine whether the deposit was opened with an initial deposit of USD 100,000 or more. The state branch that has been established have to deal with this inspection. Deposit accounts, which are kept by the depositor at the same right and with the same power, can be added to establish a balance.

Mutual funds[edit]

Most mutual funds require an initial payment of between 2000 and 3000 USD. This amount is often lower in the case of individual retirement, but can still amount to 1000 USD. If you have the money to make such an initial deposit, the choice of investment funds is quite wide. Unfortunately, many of people do not have an additional 3,000 USD. But it is not a big problem because there is still many different ways to enter the market. One of them are investment funds that will allow everyone to open an account for several hundred dollars. They have low entry points, but there is a lot less, so the choice is limited. Many mutual fund controllers allow the initial deposit to be used as a criterion during audits when looking for investment funds[2].

Payment schedules[edit]

The initial deposit is also one of the financial categories in the payment schedules. If initial deposits are required as soon as the sale agreement is accepted, the initial deposit amount should be sufficient to cover all contingent costs and liabilities. Examples of such costs may include:

  • suspension of the contract,
  • potential liability for termination of the contract

Implementing agencies are expected to carefully monitor the accuracy of payment schedules in all cases. This ensures that cash is available when there is a need to pay[3].


  1. Code of Federal Regulations 1980
  2. Little K. 2012
  3. FMS Customer Financial Management... 2007


Author: Weronika Wielochowska