What leverage is
Forex trading is considered one of the most beneficial businesses in the markets. The leverage offered by the forex brokers is very common to see in the forex market, which is playing a significant role in forex trading. When traders are going to choose a broker, the leverage ratio is one of the most important factors that many traders are concerned about. Leverage in the forex industry is imperative to many traders as they do not have to spend much of their money to make high profits by using leverage. By “borrowing” money from a broker, investors can trade larger positions in a currency. In other words, it can control a large amount of capital by using very little of your funds and “borrowing” the rest. High leverage can amplify benefits as well as losses. Therefore, investors need to carefully analyze the expected returns and possible risks of investment before choosing appropriate leverage.
WikiFX Rating: solid brokers that offer approprite leverage
If you are an experienced trader who expects to enhance your trading result. Brokers offering high leverage can be your options. On WikiFX, we choose some solid brokers that may meet your needs. They all have decent scores given by WikiFX.
IC Markets: Leverage of up to 1:500
IC Markets is an Australia-based global forex broker founded in 2007. It is regulated by Australia Securities & Investment Commission (ASIC) with license No.:3335692 and Cyprus Securities and Exchange Commission (CYSEC) with license NO.: 362/18. The company has several branches and is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Seychelles Financial Supervisory Authority (FSA), and the Australian Securities and Investments Commission (ASIC). 1:500 leverage means that for every $1 of brokers capital, traders get $500 to trade with. Leverage of up to 1:500 is considered high. IC Markets is the forex broker that offers leverage of up to 1:500.
Exness: Leverage of up to 1: unlimited
Exness is a regulated and reliable forex broker that offers unlimited leverage. It has a license issued by the Cyprus Securities and Exchange Commission (CySEC). Exness allows investors to operate with higher amounts and to increase their profit. High leverage presents wider trading opportunities, but it also presents a higher risk. Unlimited leverage means you dont have to pay anything for margins. Unlimited leverage allows traders to use very little margins to open many more positions. considering there is a lot of inexperienced trader in the market, As a responsible broker, Exness provides the services only to those who are professional in forex trading. In order to do so, the traders need to meet some conditions to use this leverage.
FXTM: Leverage Lever differs depending on different accounts
FXTM is founded in 2011, FXTM is an abbreviation of ‘Forex Time Limited’, FXTM is regulated by CySEC with license number 185/12 and FCA with license number 777911. Leverage Lever also differs depending on different accounts. Standard accounts with floating leverage of 1:2000, FX Cent accounts with the leverage of 1:1000 to 1:25 (FX), the Equity CFD account with fixed leverage of 1:10 for US equities, 1:3 for European equities, the ECN accounts with floating leverage of 1:2000, the ECN Zero commission account 1:2000, and FXTM Pro account with flexible leverage: 1:200 to 1:25. If you tend to know more about this broker, you can see the full review through this link. https://www.wikifx.com/en/newsdetail/202206287474553923.html
High leverage vs Low leverage
High leverage is essentially a personal perspective, however, higher leverage is generally considered to fall between a ratio of 1:400 to 1:1000 and higher. In the forex market, leverage is commonly as high as 100:1. This means that for every $1,000 in your account, you can trade up to $100,000 in value. Leverage of up to 1:10, and 1:50 can be considered low leverage. Low leverage may not be very profitable, but it is less risky.
The Advantages of Trading with High Leverage in Forex
Without leverage, people have no choice but to offer large amounts of capital in order to make huge returns. Leverage gives traders an opportunity to make huge returns even if traders only offer very little capital. With leverages help, it is possible for one person who has $100 to trade with up to $100,000.
The Disadvantages of Trading with High Leverage in Forex
Although it seems tempting, there are some important disadvantages you should take into consideration.
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Leverage is a two-edged sword. As it may maximize gains, it can also increase losses.
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High leverage requires experienced traders in order to reduce the risk. Leverage can amplify gains as well as losses. Trading with high leverage is relatively risky. It requires a trader to be very experienced and attentive. Otherwise, big returns may turn out to be smaller returns and a small loss can turn out to be a bigger loss.
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Leverage is a constant liability. Whether you have to pay additional costs or not, you must pay the leverage initially. The principal amount of leverage must be met in order to let you keep trading.
How to Choose an Appropriate Leverage for Beginners
Leverage is the primary concern for traders in the forex market. Many traders, including inexperienced traders and newbies, intend to choose the leverage ratio as high as possible. These traders expect that higher leverage can deliver faster and more significant results. However, the higher leverage can also cause traders a heavy financial loss if something goes wrong. Therefore, newbies and inexperienced traders should choose the level of leverage that they feel comfortable with. Low leverage, such as 1:50, is more suitable for beginners. After all, experience is more important than making money eagerly.
WikiFX advises you to find the brokers offering lower leverage, which has smaller risks.
Besides, for your money safe, please note that whatever broker you choose should have a legitimate license.
WikiFX contains details of more than 36,000 global forex brokers, which gives you a huge advantage while seeking the best forex brokers. If you want to know more information about the reliability of certain brokers, you can open our website (https://www.WikiFX.com/en). Or you can download the WikiFX APP for free through this link below (https://www.wikifx.com/en/download.html). Running well in both the Android system and the IOS system, the WikiFX APP offers you the easiest and most convenient way to seek the brokers you are curious about.
