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Why Traders Set a Minimum Deposit

Sergey Ryzhavin
September 19, 2025

1. What Is a Minimum Deposit?

In both PAMM and Copy Trading, traders can define a minimum deposit that investors must meet to join a strategy.

This isn’t a restriction — it’s a protection mechanism for:

  • The trader’s strategy
  • The system’s technical stability
  • The investor’s own experience

How It Works in the B2Copy Platform

The minimum deposit logic is enforced slightly differently across PAMM and Copy Trading:

  • Copy Trading:
    The system checks if the investor’s current balance on the investment account meets the minimum set by the trader.
    If not, the investor must top up the account during the last step of subscription. Otherwise, the system won’t allow the subscription to proceed.
  • PAMM:
    In PAMM, the investor always makes a first-time deposit at the last step of subscription.
    The platform enforces the trader’s minimum by requiring that the investor deposits at least the minimum deposit amount to activate the subscription.
    No funds — no entry.

This ensures that no undercapitalized investors are added to the strategy — and protects trade logic and allocation.

2. Why Traders Use It — Core Reasons

  • Prevent undercapitalized investors from damaging strategy structure
  • Avoid payout rounding issues and micro-fee inefficiencies
  • Reduce reallocation noise from frequent small deposits/withdrawals
  • Filter out short-term, speculative, or low-commitment clients
  • Preserve clean system behavior and professional reputation

3. Use Cases in PAMM — Why Minimum Deposit Matters

1. Prevent reallocation overload from frequent small deposits

In PAMM, every deposit or withdrawal triggers a reallocation during rollover.  
With many small investors constantly moving in and out, this can happen daily — or even multiple times per day.

This leads to visible balance operations on investor accounts like:

  • “Profit Reallocation”
  • Equity adjustments
  • Rollover markers — even if no trade was closed

For less experienced investors, this may seem confusing or suspicious:
“Why did my balance just change?”  
“Is this a fee? Is something broken?”

A higher minimum helps avoid constant micro-reallocations and keeps investor experience clean and professional.

2. Protect P&L distribution accuracy (currency precision limits)

Internally, PAMM works with up to 8 decimal places.  
But final P\&L is distributed in account currency precision — typically two decimal places (e.g., $0.01 in USD).

Example:
If a trade earns $1 and there are 1,000 investors:

  • Only 100 investors will receive $0.01
  • The other 900 receive nothing — not because they didn’t earn it, but because $0.01 is the smallest unit allowed

This creates:

  • Frustration from investors who “missed” profits
  • Perceived unfairness
  • Rounding bias toward larger deposits

Setting a higher minimum ensures each investor gets a fair and accurate share of profits — and reduces rounding bias.

3. Grid strategy requires a minimum to maintain profit integrity

Example:
Imran runs a gold grid strategy that opens and scales 40+ positions.
For this system to work properly, each new deposit must be large enough to support the next grid layer — otherwise, he can’t scale volume without breaking balance.
He calculated that $10,000 is the minimum capital required to keep risk and profit ratios intact.
If smaller investors join with $1,000–$2,000, the PAMM platform will reallocate all existing positions at current prices.
This forces the system to rebalance and lock in partial P\&L — which reduces yield for earlier investors who joined at better prices.
To prevent that, Imran set a $10,000 minimum deposit.
Now, only investors with enough capital to fully participate in the grid logic can subscribe — and his current followers enjoy stable, uninterrupted compounding.

The minimum isn’t a filter — it’s protection for the strategy’s internal mechanics and early investors’ edge.

5. Stabilize AUM and reduce short-term churn

Example:
Mikhail noticed $100 investors joined, panicked during drawdown, and exited 2 days later.
He raised the minimum to $1,000. Result: better capital retention, more committed clients.

6. Attract long-term capital, not speculators

Example:
Julia runs a conservative, fund-style PAMM.
She wants serious clients — not short-term gamblers.
Her $5,000 minimum filters in exactly the kind of investors she wants.

7. Reduce support overhead and low-signal questions

Example:
Artem’s inbox was full of tickets like:
“Why did I earn $0.63?”
“Can I withdraw $9?”
After enforcing a $1,000 minimum, his support load dropped — and investor quality rose.

4. Minimum Deposit in Copy Trading — Why It’s Even More Critical

1. Prevent early liquidation in small accounts

Example:
Andreas from Germany runs a strategy that layers multiple positions during market retracements.
His master account has $20,000 and uses moderate leverage — but the floating drawdown can reach \-15% before reversal.
When he enabled copy trading, many small investors joined with $100–$300.
On a \-10% move, Andreas was still in control — but those followers hit margin calls and were force-closed.
They never saw the recovery — and blamed him for their losses.
Worse, some of them complained to the broker and left negative reviews:
“The trader is profitable, but I lost money. How is this fair?”
After that, Andreas enforced a $1,000 minimum deposit for new followers.
Now only accounts with enough margin can stay in through volatility — and investors are better aligned with his strategy logic.

The minimum deposit protects not just investors, but the trader’s track record and reputation.

2. Prevent risk distortion from trade size rounding

Example:
Jonas is a systematic trader from Sweden.
He trades with a fixed logic: 0.1 lots per $1,000. This lets him control risk exactly — 1% risk per trade, every time.
But in copy trading, not all followers use the same capital.
Some join with $1,000. Others — with just $50 or $100.

Here’s the issue:
In the B2Copy system, trade sizes are rounded up to ensure that even small accounts can follow trades.
That sounds helpful — but it comes with a hidden cost.
Let’s say Jonas opens a trade for 0.1 lots in his master account.
A $50 investor technically qualifies for 0.005 lots — but since 0.01 is the smallest possible, the system rounds up and executes 0.01.

That’s double the intended exposure.

  • Jonas risks 1% of his capital
  • The follower risks 2% or more, even though they think they’re copying exactly
  • If the trade hits SL, Jonas loses $10 — but the follower loses $20 relative to capital

The result?

Investors:

  • See higher drawdowns than Jonas
  • Get stopped out earlier
  • Take bigger losses than the strategy actually intends

After several months of this, Jonas received confused and frustrated messages:
“Why am I losing more than you?”  
“Your risk doesn’t match what I see.”  
“I trust your strategy, but my stats look worse.”

To fix this, Jonas enforced a $500 minimum deposit — ensuring that:

  • All copied trades respect the original sizing logic
  • No trade needs to be rounded up
  • Risk stays in proportion for every follower

Now investor results are consistent — and Jonas protects both his strategy’s integrity and investor trust.

Too little capital forces the system to overexpose investors.
A minimum deposit keeps risk aligned — exactly as designed.

5. Why It Helps Investors Too

Minimum deposit protects both sides of the trade:

  • Ensures investors participate fairly in P\&L
  • Prevents skipped or failed trades (in copy)
  • Makes fee collection transparent and worthwhile
  • Avoids reallocation noise in PAMM
  • Creates a more serious, committed investment environment

6. How Brokers Should Explain It

Don’t apologize for the minimum — promote it as a feature:

“This strategy is professionally managed.  
The minimum deposit ensures fair distribution, stable capital, and proper system performance.”

  • Show minimum deposit filters on the leaderboard
  • Explain how rounding and reallocation work in your FAQ
  • Help traders find aligned investors — not just anyone with $20

Sergey Ryzhavin
September 19, 2025