When MT4 say not enough money error that means you want to open a trade that has large lot size, the account has small leverage, small margin available or you do not have enough money on your trading account.
To solve not enough money error you need to solve all possible reasons that could be causing the error. And in this article I will explain to you all of them what they mean and how to fix MT4 not enough money error.
I will show you an example in Forex trading platform how the “not enough money” error happens and then how to fix that error.
Why Does my MT4 Say Not Enough Money?
MT4 says not enough money because you did not fulfill one of possible four conditions. Conditions you need to fulfill to avoid not enough money error are:
- have money on trading account
- use proper leverage
- use proper lot size
- have enough free margin to open a trade
Money in a trading account is important and the first condition you need to fulfil. Without money, real or virtual, you cannot open a trade.
Then you need leverage that will allow you to control more money than you have invested. If you do not have enough money on trading account leverage can help you overcome that problem.
The lot size defines how much each pip will be equal to so it is important to calculate proper lot size on each trade you want to open.
And free margin which defines how money is available for trading after the broker takes some margin for safety reasons.
Now, all these conditions must be fulfilled in order to avoid not enough money error. I will show you how each of these errors are causing the problem and how to solve each.
How to Fix MT4 Saying Not Enough Money
Before trying to fix errors you need to understand how the error is caused. What is the reason MT4 would not allow you to open a new trade.
Luckily the cause is well known and the solution is also easy to implement. The main reason behind all causes of this error is not having enough money to open a trade.
Trading With Money on Trading Account
When you start trading you need to have money on your trading account. If you do not have money on a trading account you will get an error.
There are two ways you can get money on your trading account.
How to get money on trading account:
- Invest your own money and put it on live trading account
- Open demo account with virtual money
First option is to take your money from your bank account and put it into your trading live account with a broker you select to trade with. That money broker puts on your trading account and you can start trading.
Second way is to open a demo account and use virtual money to trade. Virtual money on demo accounts is available with all brokers so this is the best option to start trading and learn trading.
With money in the trading account it is time to open a trade. And you have fixed the first possible cause of the not enough money problem.
But, there is one thing you need to have in mind and that is you need to have enough money. Enough money means at least $1000 so you can trade and see some results.
You can have less money, but it will not be fun to trade with small amounts. And you will be limited much more than with a higher amount.
For this test I have opened two demo accounts with $1000 on them. One is with leverage 1:1 and the second one is with leverage 1:100.
With money on trading accounts I have solved the first problem that is causing MT4 not enough money error.
MT4 Lot Size
With money on your account you can open a trade. To open a trade you need to define which lot size you will use.
Lot size defines how much each Pip will be equal to. That means one 1 Pip can be equal 0.1$, 1$ or 10$ or any other amount.
If you want to open a lot size that is larger than your account size then you will get an error. You need to lower the lot size to the level that is acceptable.
And that means you need to open a lot size that is less than $1000 you have on your trading account.
Here is a short explanation of different lot sizes and pip values.
With $1000 on your account you can open a maximum few nano lots which is less than $1000. And that is if you are using trading without leverage.
If you are using leverage 1:100 then you will control $100 000 and you can open something less than 1 standard lot which is equal to 100 000 units of base currency.
So, pay attention to the size that is possible to use on your account size. Always compare how much money you control on a trading account, with leverage or without leverage, and then which lot size and that means units of base currency you want to control.
Now, as explained above, to fix the problem with leverage you need to control more money on your trading account than you have invested.
In this case I have put $1000 on a trading account and with two different leverages. One is leverage 1:1 meaning no leverage. Second one is leverage 1:100.
Leverage tells you how much money you have in control in trading based on your investment.
Leverage 1:100 with $1000 invested allows you to control $100 000. Which means you can open almost one standard lot which is equal to 100 000 units of base currency.
That means you can open a trade where 1 Pip = $10 which allows you to make more money with less pips.
But, if you want to open a higher lot size, like 2.0 standard lot size where 1 Pip = $20, you will get an error not enough money. Because you are trying to control $200 000 which is not possible with leverage 1:100 and $1000 on your account.
To solve that problem you need to lower the lot size that is less than 1 lot, or you need to increase account size. For example you can invest $9000 more so you have $10 000 on your account.
That way you will increase the money you will control with leverage 1:100 from $100 000 to $1000 000 which allows you to open higher lot sizes like 8 lots where 1 Pip = $80.
The final possible cause of error not having enough money is free margin that is available for new orders.
Free Margin = Equity (Balance) – Margin
Margin requirement = (Contract size * lots) /Leverage * (Conversion from base currency to USD)
When you do not have open trades you will have free margin available equally to starting capital on your trading account.
Each time you open an order you will take some of that free margin. If you open trade you will take some free margin. And if that trade starts to lose money you will decrease the free margin even more.
If you turn that losing trade into a profitable one you will increase free margin.
After you open one trade you can use the rest of the free margin to open more trades. But if you start losing free margin and you lose free margin then you will not be able to open new trades and you will get not enough money error.
To fix the margin error you need to pay attention to having free margin. And to make that you need to have profitable trades and not to open too many trades that will eat your free margin.
Free Margin Examples
Free margin = $250
Open 1 lot EUR/USD at 1.3 and the account leverage is 100
1 lot EUR/USD margin = (1 * 100,000) / 100 * 1.3 )
1000 EUR * 1.3 (EUR/USD conversion rate) = $1300
Free margin ($250) < required margin ($1300) which will not allow the order to be opened and you will receive “not enough money” error.
Margin During News
Sometimes during news you can expect that you cannot open a trade even you could before with the same lot size, same account size and same leverage.
The reason is behind news that can affect broker margin requirements. Brokers sometimes increase margin requirements to protect themself from large losses.
When that happens you can expect to get error not enough money because your margin requirement is increased so you need to lower lot size or increase account balance.
Read more: What is MT4 Negative Balance
Have in mind that the main reason behind error not having enough money is not having enough margin to open a trade. And behind the margin is always account balance.
To fix the error have in mind to have margin level in green meaning having enough money and using proper lot size.