What is the average leverage used by traders in foreign exchange (FX) markets?
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Depends on what country you’re in, but most regulated brokers offer 1:50 leverage (or 50:1…whatever). As for the average, you would need get those stats from every single brokerage in the world. Good luck, lol.
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Nobody knows.
This information isn’t available.
Most brokers are either completely unregulated or regulated only as a pretense by regulators who don’t limit permitted leverage at all.
There’s a huge turnover of traders and accounts with high leverage.
They’re mostly gamblers, not traders, so it doesn’t mean anything.
Among successful traders, a very small minority, the average might be between 30/1 (Europe and Australian regulators) and 50/1 (USA).
But that’s such a small minority of people that it can’t shift the balance much.
Many people try 1000+/1 leverage.
Those accounts don’t usually last long, but some people try repeatedly.
So the true average leverage figure wouldn’t mean anything, even if it could be found out.
Why do you ask?
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I use 100:1 and my order cost is micro - usually 0.08 maximum.
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Thanks for your reply! I understand that getting an average for all brokers worldwide might be challenging. I’m curious, though—why does the leverage offered depend on the country? Also, I’ve come across some brokers offering a leverage of 1:1000. How common is this, what do you think?
's interesting to learn about the variations in leverage and how it correlates with trader behavior. Regarding regulation, is it essential when it comes to leverage? I’m aware of reputable brokers offering high leverage, and they seem to operate without issues.
Thanks for sharing your personal experience!
With your 100:1 leverage and a micro order cost, have you found this to be a effective approach for your trading strategy?
Works fine with my c.$500 account size.
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High leverage is evidential of lack of good, effective regulation, because good, effective regulators who protect traders (rather than counterparty brokers) limit it as they’re in jurisdictions with laws about this,
Reputations can be mistaken.
Brokers offering high leverage have, by definition, chosen not to be well/properly regulated.
I don’t say they’re all terrible, but using one is a completely unnecessary risk and we are, after all, in the risk management business. 
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Accurate assessments of the average leverage in the trading industry may remain elusive unless brokers willingly choose to disclose such information to the public, or are mandated to do so. It’s important to note that the level of leverage a trader utilizes is closely tied to their risk tolerance and the size of their equity. Moreover, it’s worth recognizing that there exists a negative correlation between leverage and risk, as larger positions can be more challenging for the market to absorb, introducing additional risk.
In my perspective, for accounts with a balance ranging from 10,000 to 20,000, an ideal leverage ratio would be 1:50.
I think it’s pretty hard to give a concrete answer to this simple question.
After all, a lot depends on circumstances.
First of all, it is jurisdiction and other restrictions.
Country in which trader is located obviously affects the amount of leverage available to him.
Second is broker. Different companies can provide their clients with different amounts of leverage.
And finally, preferences of traders. Some traders prefer to trade with larger leverage, while others seek smaller leverage.
It’s clear that the lack of standardized reporting makes it difficult to pinpoint a specific average. I appreciate your perspective
Your points about the influence of jurisdiction, broker policies, and individual trader preferences are indeed crucial factors. This variation emphasizes how leverage is not a one-size-fits-all tool but rather a strategic decision tailored to each trader’s circumstances and risk appetite.
the sentence above is (by far) the single key fact in the whole thread, and ought to be (but may not turn out to be!) the thread’s major take-away, for anyone who wants to learn something important and valuable
using a broker offering higher leverage than any proper regulator allows isn’t in fact just a strategic decision - it’s a strategic mistake (typically arising from inexperience, ignorance and the widespread propagation of misinformation)
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