The forex regulations are made by some thieves for thieves
The percentage of loss is higher the lower the leverage
The essence of trading with leverage is precisely this, not to buy the unit, but only to support the transaction from the point of view of value
A small leverage should also displease the brokers ,if they were correct,
Leverage small number of units traded by trader ,smaller so profit made by
broker ,smaller
But what to see is not like that, now the broker throws in front of the trader the EU leverage 1:30 or USA 1:50 regulations made to the detriment of the trader and should have been to the detriment of the broker if they did not act like a casino
What needed to be regulated is not regulated, such as the level of spreads or swaps, the keeping of clients’ money in segregated accounts.
Every day between 22 and 24 London time spreads of up to 40 pip, spreads of 10-15 pip on the news, no, they are not normal, they are just moments when the money is stolen from the traders’ account
If you look and analyze all these forex broker companies based on customer feedback, you will realize that they act like a casino and not like a broker
Why ?
Because it is easier to deceive traders than to earn money from transactions
Yes, brokers are like casinos but only in reality that is because they offer the trader to open a private bet. The trick is to not behave like a casino punter.
What I want to say is not about trading itself, it’s about broker behavior.
The broker should not aim to limit the trader, from his point of view he is protected by margin calls and hedging made on the trader’s stop loss, then the high leverage is only the trader’s responsibility and it is up to him how he manages the situation
More broker behavior that limits the trader according to me indicates that he is not honest and his earnings are basically based on spread news and spread 22 -24 London time
Normally, the interests of an ECN broker should be the same as those of a trader, it’s simple, high leverage, large amounts traded, so higher income for the broker
Everything you said is somewhat correct. Although people are still losing money with the best brokers, it doesn’t necessarily mean the problem lies with the brokers. On the contrary, some traders are making a lot of money. In the end, I think it all depends on the trader themselves.
Dear Emi, what I want to say is that a leverage lower than 1:100 puts the trader at a disadvantage
Theoretically, for those who trade intraday and who make many transactions, it is a very big disadvantage because it reduces the number of transactions they could make: one is that you can trade 1000,000 eur with equity 10,000 eur at leverage 1:100 and at leverage 1 :50 only 500,000 eur
Yes, it is possible to trade for a longer period, but what do you do with silly swaps practiced by the same brokers who have nothing to do with reality
A few days ago I traded gbp/chf when I approached 22:00 London time to avoid the spread that could have deleted my stop loss, I hedged the position and paid at 0.35 (ie 35,000) swap of 18 usd for one day at Fusion Market, that is, a thief on the face
(18x26=468 usd per month 468x12=5,616 usd per year interest has nothing to do with reality) and Fusion Market is a regulated broker in Australia
What I wanted to highlight in the post is that if it is an ECN broker, it would have the same interest as the trader to be able to transact more units
Moreover, in my opinion, in order to be able to trade smart money, you cannot do it with low leverage
Hi Silviu,
I have three questions. I support your conclusions.
1 How would the rules need to change to stop these events damaging your trading plans?
2 What would you do differently if those rules changed in your favour as you describe in question 1
3 Would this move you closer to achieving your trading goals?
Yeah, I totally get that a skilled and experienced trader can handle high leverage, and I’m with you on that. But when it comes to regulated brokers, I kind of feel like anything that’s controlled by the government – any government, really – is more about them keeping us in check, you know? Like, they’re setting limits and not letting us do our thing. For example, I don’t want to deal with swap fees, so I go with a swap-free brokerage. I can’t stand it when spreads go crazy wide out of nowhere, so I stick with a broker that offers fixed spreads. And I definitely don’t want to be stuck with just a 1:50 leverage, so I choose a high-leverage broker. I know what I’m doing, and I think being under that kind of control might be okay for some people, those who don’t really aim high or chase their dreams, but it’s not for me. I’m all about being unique and chasing something extraordinary.
You understand the game. Play the game as best as you can. If you’re broker is cheating, find a new broker. If the entire game is rigged, find a new game.
Unfortunately while trying to regulate brokers and traders in the name of safety, the powers that be take away something that could really help those in the know.
Apologies for the delay.
I don’t ask for rules in my favor, but I don’t agree with those against me.
I don’t even know if there are rules because at most Brokers you will find a stipulation “if you join a professional trader, then you can benefit from leverage of up to 1:500”
1 week ago I did an experiment with IC market. They have an automatic tester designed to show you that in fact you only benefit from 1:30 leverage in my case for the EU country.
Take the test and I assure you that at the end, regardless of the checked answers, the answer will be the same leverage of the USA, EU area…the location where the trader is from
As I mentioned, in my opinion, if it is a correct ECN broker, then the interest for a high leverage for the trader should be a priority.
High leverage = many transactions, high income for the Broker.
In the same swap, we have the annual interest rate and it should be reported and quantified, don’t leave it to chance because then the abuses appear
About the spread at 10 p.m. London, watch the tricks carefully: you have an open short position, the move is favorable for you, bid drops 30 pips, ASK on the spot or increases in the first threshold if you take 1or2 pips is a lot, there is still 1 hour until 10 p.m. london spread increases to 3-4 pips every time a minimum or maximum is tried, which can mean not reaching your take profit or reaching your stop loss or pending orders executed at a price that has nothing to do with reality.
​What I want is to be able to make transactions as a trader, because the risk is assumed only by me, and reducing leverage reduces my chances of winning
You must trade futures, then, surely? There are no “transactions” at all with spot forex, or currency changes, only bets against counterparties on the prices of the counterparties’ own instruments?