Hi Babypipsonians.
Silly question here (I am known for asking them).
If two brokers are the same in every respect except that one is offering 500:1 leverage for EUR/JPY and the other is offering 100:1 for the same currency pair which would be better to go with?
Assuming that you’re a beginner for asking this, I would say that at your stage even 100:1 is high. Checkout if he offers 50:1.
Unfortunately your response was rather vague and not much help at all. I doubt I am the only one who would love to have a proper answer to this question. What difference does it make if I am a beginner or a seasoned trader and how would that affect 500:1 or 100:1 leverage? I deliberately used those leverages for a reason. The issue is not my competency here. Seasoned trader or not which would be better if the aim is to make money?
When it is about choosing the best leverage, it certainly depends on the capital which the trader owns. But still, talking about the effective leverage, I have found that 1:100 to 1:200 can be considered to be the most preferred leverage. I think that 1:100 leverage is neither too high nor too low which makes it appropriate to be used for the trading purposes. What do you guys think?