About US Forex Brokers

Broker Discussion Forex Brokers
1

It’s widely known that US forex brokers generally only offer lower leverage when compared to international forex brokers, citing the reason is to lower overall risk for participants. Instead of placing a lower leverage cap for all participants why not incorporate tiers based on experience? No leverage or very low leverage for new accounts, and higher tiers with higher leverage for more seasoned/older accounts?

Criteria which can be used to determine experience of a participant can include:

  1. Length the account has been open for without blowing up an account
  2. Number of trades made while the account has been open
  3. Number of times a margin call has been made (the more the negative)

The better the stats for the various criteria the higher the tier and more leverage an account can access.

1 Like
2

I may be wrong here but it is my understanding that brokers do not choose their maximum leverage offered. This is mandated by the jurisdiction in which the broker operates, and the US (and Europe) legislation has changed over the years - mainly after the 2008 financial crisis, to limit the leverage offered for brokers who wish to operate in certain jurisdictions. And many members here will tell you - a trader needs nowhere near the maximum leverage available unless his or her objective is to actually blow the account out to zero. :money_mouth_face: