I personally don’t think that using high leverage is a wrong decision. It doesn’t alter the potential profit or loss that a trade can make. In fact, professional traders look at leverage as a way of releasing trading capital for other trades.
I have seen many traders struggling to find the right broker. By this, I understand that the traders are not clear enough about their trading requirements. If they were, they would have found suitable brokers for sure. I know it takes time but when you know what you are looking for, finding the right thing gets easier. As I am more into easy trading platforms and reasonable account fees, CMC markets and fxview are the brokers that go well with my requirements. They are transparent and put no restrictions on my trades.
Thanks for sharing the broker names. I am looking for a broker that negotiates in my best interest.
Though I am not against using leverage, I fear that a highly-leveraged trade can quickly deplete your trading account if it goes against you. With a great amount of leverage you are applying on your capital, you are taking a high risk for yourself. What you can do is track your positions, apply stop loss, and use market orders to avoid large-scale losses.
One must not forget that by using leverage, you may affect the free margin of your trading balance. Your account can decrease in size by the amount you lose.
I am not sure why everyone is only talking about leverage here when the OP has clearly mentioned a lot of other things also including deposits, withdrawals, and executions.
I am not very sure about FXTM as a broker but have heard some great reviews about it. But if you still want to try out some other broker, I think pepperstone can be a good choice. It offers a great trading platform and high leverage. But of course, using leverage is your personal choice and if you don’t want to use more than 1:50, no one is asking you to.
You may not get everything you want from just one broker. It would be better if you can look for multiple brokers that fit your requirements. Try using different strategies with different brokers instead of sticking to one option. Like I use a wide range of brokers, most actively out of which I am using etoro, axitrader, fxview, fxcm, particularly because of lower spreads. Even with trading platforms I use a range - acttrader, MT4, most.
You’re right to point that out. I think every little aspect is important when a trader is looking for a broker to trade. Leverage is just another piece in the puzzle and the focus should be on getting better spreads, commissions, platforms and even withdrawals.
Choosing a broker is fine but how do you identify they are not a scam? I mean is there some sign or rule for that kind of thing or people just go by leverage?
These are exactly my thoughts because I could never find one broker that offers everything. For now I’m looking at Avatrade, Fxview, XM, XTB etc. This will also give me access to different platforms and accounts which I would not get at with a particular broker. Actrader is something I’m looking at, think both avatrade and fxview are providing that besides the metatraders that all the ones I’m looking at are offering.
“Leverage” is something you use while trading. No, there is no rule for identifying a broker. You can just read reviews and stuff. How about you take some courses first? There are plenty here!
whats the point to take leverage only 50;1… Its much better to take higher leverage for ex; 500;1,that would give u a oportunity to make the same amount of profit ,BUT with lower deposit. For those who can trade in profit each day,higher leverage its a NICE possibility to earn more with less money. BUT if u cannot trade in profit,there is no point in 50;1 leverage,you can take even 2;1 leverage but if u cant trade in profit you will lose anyway,
So whats the point//
I don’t really mind using a high or a low leverage as long as I don’t have to risk my money lol. Still trading on demos and learning for a while.