Which leverage to choose

I have being trading demo for quite some time now and want to start real trading with $100 - $200 as a beginner with this broker; ifcmarkets.com and their leverages is in descending form e.g 1:100, 1:50 … 1:1. Which leverage will be best for my trading since i haven’t trade and manage live account before.

Before you start trading real money you need to have a firm grasp of proper money management techniques.

I suggest you risk a set percentage of your account per trade (I use 2%).

If you do this then your leverage settings are irrelevant, because you will never overleverage yourself.

Also, that broker looks shady. I’d go with one of the larger regulated brokers such as IBFX, Alpari, FXCM, Oanda, etc…

I mean no offense, but if you’ve been on demo for some time and feel ready to go live, you shouldn’t have to ask about something like this. You should know the answer already.

Are you really ready?

That being said, Phil is right, but still it’s safer to choose a low leverage since that helps to reduce the cost of bad behavior should such occur when you go live. It did for me, so I talk from experience. Live and demo aren’t even from the same planet so to speak.

Hello ,
I think so you should go for 1:50.Because More Leverage means more Risk , and can be more risky and harmfull for your trading a/ ,Portfolio.

Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up - and control - a huge amount of money ,and High Leverage means High risk. Actually Leverage is a Double Edged Sword.When you are right on your trade this leverage turbocharges your gains. When you are wrong, however, this same leverage exacerbates your losses. Far too many traders and investors fall prey to the temptation that leverage brings about. Greed takes over when you lose the healthy respect for the market that is critical to success.
Desperation to quickly win back losses that were created by excess leverage in the first place can ultimately wipe out an account. When one gets complacent and makes that first wrong move the chances to spiral out of control are set in motion. It is crucial to stick to your plan, strategy and realistic goals. Leverage should be used with extreme caution.

have a happy trading

Demo and real accounts are not the same, let me write that again, not the same so go with the 1:100 and know that any money you have made is = to less then (0) so get into the game and start building babypip’s into your real account.

If you are ready to go then I suggest 1:100

It is as I understand, the most popular.
It works well for me. :slight_smile:

It is very middle of the road. :slight_smile:

With $100 - $200 to trade, [B]I take it you will be using a micro account!![/B]


Are you saying there is much differences in demo and real? if there is please can you point some out for me to know better. Thank you all contributing in this my post, i really want to know better.

What do you mean when you say “demo and real accounts are not the same”?

Other than the psychological issues, and the slippage factor, demo accounts are identical to real accounts in every way.

As far as leverage is concerned there are no differences between demo and real accounts.

100% wrong if you mean the leverage ratio, which is the OP asked about. If you mean actual leverage used yes.

However, you can have a 1000:1 leverage ratio on your account and still only risk .5 % of your account if you want. Actual leverage ratio has no bearing on this.

I’m so sick of people parroting that, “leverage is a double edged sword and makes trading risky.” It is only so if you use it. Repeating this over and over gives noobs the impression that it’s the leverage ratio and not the use of their own account margin and lot size and per pip value and Sl, that dictate the risk to the account.

If it’s one thing babypips needs to fix it is their section on leverage and why it is actually dangerous.

I agree with 100:1, not because it’s the “right” answer but because it’s perfectly good for your situation, and every minute you waste trying to figure out what leverage is best is a minute you could’ve been learning something far more useful to your trading.

Demo accounts are for fun they let have fun and make your babypips.

Real accounts, let the GAMES begin, they manipulate the prices, you do not have access to the real’ prices. If you are successful, they ‘spike’ the price to stop you out and lets not forget the platform shut down trick, (lol) I love that one the best.

The brokers that offer high leverage and recommend that you place stops close to the entry, bad move your dead and out of the trade fast. Spreads to ridiculous levels when economic news is announced, which will also stop you out

You cannot trace this price movement and some brokers will have a series of price feeds that differ according to the client’s trading patterns. know need for them to do this on a demo account but I think some Brokers will look at Demo accounts to see how you will trade with them and then take you out of the GAME by steeling all of your babypips.

Can you beat them at their own games yes because they are in business and they do need clients but not all clients so be the one they need and you will be ok with your babypips in your bank account.

I’ve been trading live for over a year now and I’ve never experienced any of that, other than spread increases at news time, but those happen on demo accounts as well…

If you have open trades during news and get stopped out by a spread increase that’s not the brokers fault, it’s yours. News is usually not a surprise, there are forex calendars all over the web.

I’ve never been stopped out by a price spike on a live account that did not also show on a demo account.

I have had my platform lock up before, but my SL and TP levels are executed whether I’m connected or not, so even that is not too big of an issue. Also, these lockups happen on live [I]and [/I]demo accounts.

That’s just not true if you choose a big broker like Alpari, Oanda, FXCM, GFT IBFX or GAIN or one of the other major players.
And there’s no reason whatsoever not to choose one of those.

This is blatantly incorrect!! :frowning: :frowning: :frowning:

There is no reason why the demo and real price feeds should be different.

I know from my GFT account that they are exactly the same.

Really now? hmmm, they manipulate the prices, its their business - you do not have access to the real’ prices and with a MM broker anything can happen.

Give it time and try many FX brokers and you will see how they really work, I love the business but its good to know how their system works on all ends - they have a admin-platform as well. and its not like your platform.

Why in the world would I try “many brokers” until I find one that screws me over??

I’ve been trading live with Oanda for a while now and have never seen the problems you mentioned, so you’re suggesting I go find another broker that has them!

I understand how market makers work, and I know I’m not seeing the “real” forex prices, but the “fake” prices on their live servers are the same as the “fake” prices on their demo servers.

If you have a screenshot showing a major price discrepancy between live/demo accounts I’d love to see it, otherwise I suggest any new traders that read this take the word of Tymen and I since we’ve both been trading real money on live servers for quite a while now.

With Oanda, ok we end ite here, lol they must really like you there been with them for a year?

I’m making lots of money, so they probably don’t like me. :slight_smile:

You seem to know little of what you’re talking about here. If you’d take the time to compare charts between an ECN and a MM you’d find that they are virtually the same.

Maybe you’ve had bad experiences with shady non-regulated brokers, but that doesn’t mean that your view is correct. Cause it’s not. Period.