THE MOST INTERESTING ARTICLE THAN EVER – HIGH LEVERAGE FOREX BROKERS
23 October, 2019
If you are still confused about how to choose the best brokers offering high leverage, this article is absolutely for you. Or if you are an EU trader who wants to look for reliable high leverage forex brokers, this article is also suitable for you.
The pros of high leverage brokers
There are many advantages which a high forex leverage broker can bring to traders, but the most highlighted one is providing its rookie trader with the tempting conditions, which means no minimum deposit is required when trading.
As a result, such broker is really attractive to traders. Additionally, traders also love its simple and easy way of accessing the internet market, as it ignores the rule of thumb in terms of risk.
The cons of high leverage brokers
Besides the above-mentioned advantages, such traders also have several disadvantages.
When they provide you with higher leverage, it means your trading may get more risk. You can multiform your profit or loss exposure against your original trading fund. In addition, high forex leverage brokers can allow the leverage up to 200:1 depending on the country you are living, which means you only need $1 to take a trading position worth $200. While you can get high profit through leverage, your risks of loss-making are also maximized.
Besides, some trading accounts cannot be applied to all countries around the world.
Even though high leverage brokers have such weaknesses, it does not mean that they are riskier than others. In fact, they have many different account types which are appropriate for every traders. Moreover, there still exist some incredible trading accounts as well as trading conditions.
More details about high leverage brokers
The higher the leverage is, the riskier the traders may take. That is because they may lose all their funds if something goes wrong when trading. Thus, I advice that traders should pay more attention and consider carefully all the risks when using high leverage.
To give you a clear understanding on the influence of high leverage trading, I will show you an example from Mr. Fanara Filippo of BRKV Forex. Imagine that you set up a standard lot position using EUR/USD currency, then you will have to invest $100,000. For a low leverage broker platform, you will be required to provide 3.33% margin, which means you need to spend at least %3,333 to set up such position.
Nevertheless, in case you trade with the traders offering high leverage like 1:500, you will only need $200 to get the similar trade. So you can see that similar position, and similar size of profit and lot, but high and low leverage brokers are so different.
In a nutshell, high leverage forex brokers have their own advantages and disadvantages. No matter which brokers you choose to trade with, you should carefully consider the risks, and take your time to search more information about it. If you do that, I believe you will get success in the forex trading market.