High leverage brokers

[chen2020]

hello all
what do you think of those brokers who offer high leverage?
i came to tis question while I was checking a topic about these kind of brokers, some were against of this brokers I wanna know why?

[flamingoproxy]

@chen2020

what do you think of those brokers who offer high leverage?

i think (in fact i know) that they’re “brokers” who have chosen either to be unregulated, or to be “pretend-regulated” by “soft” regulators unable and/or unwilling to protect the customers of the broker

there are good and valid reasons why brokers regulated by the regulators in Europe, Australia and America aren’t allowed to offer very high leverage

personally, i wouldn’t touch a “broker” not regulated by FCA or ASIC, and i’d strongly advise you to do the same

even brokers regulated by the comparatively soft regulators in Cyprus aren’t allowed to offer more than 1:30 leverage

anyone and everyone with any experience of working in the industry will tell you that brokerages offering 1:200 or 1:300 or 1:500 leverage have NO long-term-profitable customers at all

don’t be fooled by those figures you occasionally see, saying that only 80%-85% of their customers are losing money: those are measured over 3-month periods; the reality is that when measured over a year or more, they have NO profitable customers at all

there are, of course, reasons for that (and they’re not very difficult to understand, to put it mildly!)

legislation in the parts of the world where governments believe in protecting the public is gradually but persistently catching up with these horrible, scammy outfits and effectively kicking them out … but there will always be “brokers” choosing to be “regulated” in countries like the Seychelles, Vanuatu, St. Vincent and the Grenadines, and so on, where the regulator will never rule against them, at least for as long as there are customers gullible enough to try to “trade” with high leverage

[maya95]

Promotions are interesting to me, but they often depend on the broker you choose. Whether you desire high leverage or not, you should always make sure the broker is legal and reputable before making a deposit and starting to trade.

[flamingoproxy]

@maya95

Promotions are interesting to me

to me also, in the sense that for me they’re a big red flag, warning me off a broker, for all the reasons explained here:-

The bonus of the broker is good or bad?

they’re almost universally bad most new traders will never manage to complete the number of lots traded to claim all the ‘bonus’ without blowing their accounts, and even those that do manage will have likely paid several times the ‘bonus’ in brokers fees/spreads ethical, real brokers don’t use gimmicks of this kind, and don’t need to the ones making such offers are counterparty market-makers relying on attracting a particular type of customer whose inexperience they know will make such offers…

[maya95]

I couldn’t agree more with you in some parts, some how your statements they make sense. but after so much research on brokers im fine with a broker that offers a promotion something like a leverage.i think there is no need to be strict about that.

[Lee-me]

Offering promotion is part of the business. Of course they need more users and that’s why they offer these promotions. part of it is due competition, but some of it is scam.

[Oli_jackson]

@chen2020

what do you think of those brokers who offer high leverage?

As far as I’m aware, leverage on FX trading is capped at 30:1 for regular clients by FCA-regulated brokers. As a result, brokers who offer large leverage are frequently unregulated and unreliable.

[Lee-me]

@Oli_jackson

brokers who offer large leverage are frequently unregulated and unreliable.

Agreed. It make sense actually. Since they’re not regulated they try to offer some promotions and so-called advantages so they can attract traders.

[Margaretwantstotrade]

Hello Chen!
Good question.
First, let me tell you something: Do not choose a broker because of its leverages and bonuses!
If you do so, you’ll be scammed!
Then, Be careful about the leverage that you use! I know that you heard it 1000 times but it is a double edge sword! If you are sure about your strategies go on high leverage.
Finally, Find a reliable and regulated broker and if it is offering you high leverages and you are confident enough to use those leverages, use it!
So, I’ll repeat that again, do not choose your broker for bonuses and leverages! If you find a good one that offers these facilities enjoy it! That’s all!
Best Luck/

[chen2020]

Thanks for sharing your thoughts on brokers and regulation in the trading industry. It’s true that some brokers choose to be unregulated or go for “soft” regulators who may not prioritize customer protection.but you know the leverage is greedy.

[chen2020]

Thanks for sharing your thoughts on promotions and broker selection Maya.
totally agree that it’s important to consider the legality and reputation of the broker before depositing and starting to trade,Stay smart and trade wisely!

[chen2020]

@Lee-me

Offering promotion is part of the business. Of course they need more users and that’s why they offer these promotions. part of it is due competition, but some of it is scam.

Hey, thanks for sharing your thoughts on promotions and scams in the broker industry. It’s true that offering promotions is a way for brokers to attract more users and stay competitive. Unfortunately, there are some shady players out there who engage in scammy practices. I’d love to hear more about your experiences or insights on how scams typically work in the broker industry. Your input would be valuable in helping others stay informed and avoid falling into such traps.

[chen2020]

@Margaretwantstotrade

Hello Chen!
Good question.
First, let me tell you something: Do not choose a broker because of its leverages and bonuses!
If you do so, you’ll be scammed!
Then, Be careful about the leverage that you use! I know that you heard it 1000 times but it is a double edge sword! If you are sure about your strategies go on high leverage.
Finally, Find a reliable and regulated broker and if it is offering you high leverages and you are confident enough to use those leverages, use it!
So, I’ll repeat that again, do not choose your broker for bonuses and leverages! If you find a good one that offers these facilities enjoy it! That’s all!
Best Luck/

I completely agree with you that choosing a broker solely based on leverages and bonuses is not a wise approach. I appreciate your emphasis on being cautious with leverage and understanding its risks.Thank you for sharing your thoughts. Just out of curiosity, do you have any specific strategies or tips you follow to ensure you’re using leverage effectively and responsibly?

[chen2020]

@Oli_jackson

As far as I’m aware, leverage on FX trading is capped at 30:1 for regular clients by FCA-regulated brokers. As a result, brokers who offer large leverage are frequently unregulated and unreliable.

Thanks for sharing that! It’s true that FCA-regulated brokers typically limit leverage to 30:1 for regular clients. Brokers offering higher leverage often tend to be unregulated and unreliable.

[Lee-me]

Well, if by players you mean traders, there are various known and probably unknown ways of scam out there. You can search them on google.

[Oli_jackson]

Imagine having a topic on BP with this title “how to scam brokers”

[Pauley1]

Leverage is leverage. I’m not sure the amount of leverage you get makes too much difference if you’re a well trained traders. This is because you’ll be risking a small percentage of your account balance based on stop loss position. So leverage actually become irrelevant.

Some regions limit the amount of leverage a broker can offer, such as the UK. But other regions don’t, such as Singapore. At the end of the day, just choose a broker that’s regulated in their country of origin regardless of leverage.

[Lee-me]

@Pauley1

So leverage actually become irrelevant.

Could you please elaborate more on this? I think I’m a bit confused.

[Pauley1]

If you set your stop loss and are only risking say 1% of your account each trade your opening position size would be dictated by your risk to stop loss.

For example, if you open a trade on a 100:1 leverage account and set stop loss at say 50 pips and are only risking 1% you’ll calculate your opening position size based on stop loss. So if you hit your stop loss you only lost 1%. If you opened the exact same trade on a 200:1 leveraged account your opening position size would calculate at half the size of the one on the 100:1 account. As your risk takes into account the leverage is double so to hit the stop loss and only pops 1% your opening position would be half.

[PeterBorren]

Maintaining 1% risk in each trade is really a difficult thing, needs a most powerful analyzing trade knowledge including perfect money management.