Hi, I’m just having some trouble finding a broker that offers high leverage in Australia.
I’ve been dealing with this issue for a bit.
currently, I’m using Peperstone which offers a 1:30 leverage ratio in aust.
only issue is that I have an acct balance of $2000 so if I’m risking 2% that’s $20 per trade with the leverage applied its around $600 which is not enough to even open up a mini lot of 0.01 ($1000)
if anyone has any brokers in mind that offer high leverage that would be amazing
You need to dig your own research on them. Earnforex listed a dozen of them, check them all out and see their reviews, their website, their support, etc etc.
Here is the link: High Leverage Forex Brokers
By having 2k account with 1:30 leverage, you can open max 2 000 x 30 = 60 000. So you have ability to open up to 0.6 lot for currency pair. By using single setup, 2%, you have no problem at all. Unless you do averaging.
Risking 2% per trade, you need to clarify. The 2% is run by pips or volume.
For example you count 2% base on balance vs volume or balance vs pips distance.
I don’t see any problem with both.
TD365.com offers leverage of up to 1:200 with segregated client funds held at Barclays in London.
It doesn’t seem to have a bad reputation, overall, as these things go.
Obviously the branch offering the 1:200 leverage isn’t the regulated one, but one knows this just from the fact that it’s offering leverage far in excess of what real regulators allow.
Tom Houggard uses and recommends them, and I think not just an affiliate. Might be worth a look?
Hi @tomo22, perhaps our money management (MM) are different.
First at all, leverage for me just a limit that broker gives.
For example:
I have 1000 account, by having 1:30, the max limit will be 30 000 which is 0.3 lot.
I have 1000 account, by having 1:100, the max limit broker gives will be 100 000 = 1 lot.
Regarding to risk. For example you are trading with EURUSD 1 pips = 10 USD / lot.
If you are for example only risk 2% for each position. The thing you need to consider is your balance. For example you have 1000 USD 2% means 20 USD.
20 USD can be
2 pips from 1 lot
20 pips from 0.1 lot
200 pips from 0.01 lot.
Calculation above has no relation with your leverage. Unless you have different formula to get the 2% risk.
Neither 1:30 or 1:500 leverage have relation to define your risk. Unless you are doing averaging. In this case, you need to consider leverage.
By using single setup, leverage almost has no relation as long as you don’t trade with full margin.
I manage few institution accounts with very low leverage. I never consider leverage into my risk calculation at all. I only use leverage to calculate my max volume base on my balance.
Of course there is margin requirement from an opened position. At this point, you need to provide sufficient balance for it. The same reason I won’t advice trading with balance lower than 1000 USD. I will always recommend trading with min 2k USD.
I cannot understand why members think that they need to put ALL of their trading funds into an account, then apply the 1% or 2% rule. Eg. if I had a trading account of £20K, I would maintain £15K in an interest bearing account, and only transfer £5K to the broker’s account. What is the downside to NOT putting all your bank in the broker account?
Hi @tomo22, I don’t catch your question. But I assume you are asking how to ensure we put 2% risk or $20 to our balance ($2000). If I get it wrong you can always ask.
The answer is simple, put stop loss for every single trade. When you trade cfd, you need 2 skills at least:
Technical Analysis skills. You know where strategic price to start your position. Strategic means will give more TP than SL. Risk Reward will be more or at least equal to 1.
Once you identify a potential trading moment, you then calculate MM base on your trading plan. There are many styles in money management, but I only explain you 2 basic styles:
Fix Volume, that means you will use the same volume for each trade. SL will be calculated base on your volume x pip value. Example, you have $1000, you are risking 2% which means $20. So you plan to trade EURUSD 0,01 lot each. So you will have to put SL 200 pips away everytime.
Dynamic Volume, that means you know exactly where to put SL from chart. In this case, you are an advance trader. Let say you are using Price Action, you know market is heading up. In EURUSD market price is 1.11150, it’s a correction with strong support at 1.11100. You have conviction price won’t break 1.11100. So you plan your SL at 1.11050, which is 5 pips away.
The risk is $20 (2% of $2000), EURUSD pip’s value 10 / 1 lot. So $20 on 5 pips will need 0.4 lot. So every time before you open a position, you need to calculate every thing properly.
There are many methods to manage your trading risk. Don’t get too excited to learn all. Start from the simplest methods (above).
Hi @tomo22, It seems you are not familiar with CFD yet. I advice you to go through BabyPips tutorial once more.
Let says your trading balance is $1000. You are using Fix Volume and love to trade with 2% risk. Your account leverage is 1:30.
Leverage
From here your maximum trading lot will be 1000 x 30 = 30 000 USD. 30 000 USD equivalent to 0.3 Lot. So you can only trade to max 0.3 Lot in total.
If you open a position with 0.31 lot … your order will be rejected.
The same thing you have open a position with EURUSD 0.2 lot. Then you want to open another position with GBPUSD 0.11 lot. Your GBPUSD order will get rejection, because the total of them exceeded the max lot. If you open GBPUSD 0.1 lot, it will have no problem.
Risk Management
Fix Volume with 2% Risk has another story.
Having 2% risk from your capital, which is $1000, will be $20.
Let says you are trading EURUSD. 1 Pip equal to 10 USD / Lot.
As describe above, your maximum volume will be 0.3 Lot. So you can trade from 0.01 up to 0.3 lot max.
If you define 0.01 as your trading volume. So to reach 2% risk, you will limit your losss up to 20 USD only. 20 USD is the amount of loss you can afford in every single trade. Base on this 20 USD, you calculate the distance of SL from your current position.
Max SL ( in USD )
Max SL in Pips = --------------------------
( Pip Value x Lot Size )
As mention above EURUSD’s Pip Value is 10 USD / Lot
For 0.01, you will calculate by 20 USD / (10 x 0.01) = 200 pips
For 0.02, you will calculate by 20 USD / (10 x 0.02) = 100 pips
For 0.05, you will calculate by 20 USD / (10 x 0.05) = 40 pips
For 0.3, you will calculate by 20 USD / (10 x 0.3) = 6.7 pips
“They” do, but the subsidiary companies under which the higher leverage accounts you’re talking about are opened are of course neither FCA-regulated nor ASIC-regulated.
The higher leverage customers are therefore not protected by a real regulator at all.
Many of them are inexperienced enough not to understand why that matters so much, and some even imagine that the fact that HFM and Exness also run other, separate brokerages which are FCA-regulated or ASIC-regulated will somehow, magically, vicariously help them in the event of a dispute about their account.
It won’t.
And that, of course, is why HFM and Exness have deliberately set things up that way: in order to mislead and deceive people.
If that’s the kind of broker with whom you choose to deposit your money, then good luck to you: you may need quite a lot of that, later, as so many people have eventually found out the hard way, often to their cost!
Meanwhile, the world is full of aspiring traders who continue to imagine that “lack of availability of high leverage” is somehow what’s holding them back from becoming steadily profitable traders. It’s exactly the same kind of philosophy as the “I’ve never actually traded a $10,000 account steadily profitably, for any length of time, but if I had a $100,000 account instead, that won’t matter any more and I’ll be able to make a living from that one anyway.” It’s a very widespread philosophy, among gamblers.