broker with 1:500 leverage

Its from a book.

Yes, having leverage of 500:1 will reduce your margin requirement, but it will more than likely give you more than you can handle.

Sure you can look at leverage as a tool, but you do not always need the biggest tool, sometimes it is too tempting. Having leverage of 500:1 or more is like have a Bazooka to take down a small wall instead of a sledge hammer.

Also, in the US brokers can not offer leverage over 200:1. So with this in mind you are probably trading either off shores or out of the US. Make sure your broker is regulated. I can not count the amount of traders I have know and seen trade at these rinky dink offshore account and never be able to pull out their money.

Just because a broker has low spreads, good execution and even customer service does not make them a legitimate broker. In my book until you have taken out a Profit from a broker, you can not trust them, but that is a post for another thread.

Yes. Leverage is Double Edged ! Good and Bad !
Good/Superb for those who really know how to use it.
Bad/Shirt-losing for those who want to turn 1k to 100k in a jiffy.

But reading from above i see few are not really getting upto the real thing.
Let me explain in a easy way...

See,
What leverage does :
is , it makes you get into a big position by paying up a small margin
Theoretically, In Account with 1:500 Leverage, one can open 5 times the position which can be opened with 1:100 Leverage with same Equity Capital

Why leverage is Required/ Say provided :
is to help trader to open a large position with small equity-

to earn Good Profit, proportional to traded size (no.of lots), IF one is right about market direction (Trade reaches T/P - GOOD OUTCOME)
or
to earn Good Loss, proportional to traded size (no. of lots), IF one is wrong about market direction (Trade reaches S/L - BAD OUTCOME)

ISSUE with Leverage:
is what's your trade size & how r u applying Money management based on Margin Left
& not really whether its Good or Bad.

Example
A) With Equity:1000$For trading 1 lot(100,000units) with 1:100 leverage, trader needs approx say 100$ margin. Margin left :900$
Theoretically, he can open 10 such trades and Margin left :0$,
which generally doesnt happen as you will get that dreaded Margin Call before.

B) With Same Equity:1000$
For trading 1 lot(100,000units) with 1:500 leverage, trader needs approx say 20$ margin. Margin Left : 980$
Theoretically, he can open 50 such trades and then Margin Left will be 0$


In Case A, No sane trader with above equity capital will open so many trades of full lot size whereas
In Case B with same equity as in case A, one can open quite a number of similar trades to an extend (Bringing in Money management) & still earning nicely.

Summary :
1) Always remember, more the leverage, more the chances that trader will open big positions ( of course, that y he/she opened a high leverage account), & if trade direction is wrong, More will the loss & INSTANT will be Margin Call
(Generally speaking, bcoz as its said some 80-90% traders always lose money)
2) One should always keep A Appropriate margin left for trade to breathe smoothly & to firewall a Margin call
3) High Leverage should be generally avoided if you have got quite amount of equity. Thats why u have read/heard about many classifying >25k$ & <25k$ accounts.
Literally, this is bcoz Average Amount of Profits required for a good living are same, both for a Small less-equity Trader & Big guns
(Except when someone is too Obsessed with crispy greenbacks)
4) Majority of professional traders ( as per point no 2) are satisfied with 1:50 leverage.
5) IG markets provides the highest amount of leverage (as per what i know) i.e. 1:700
6) US brokers are not allowed to provide leverage >1:200.
7) Oanda, a well known broker, only provides Maximum Leverage of 1:50

Personally, even with less capitalized traders, i feel anything more than 1:200 leverage is like making your broker rich, except if you have Winning% of 100%, in which case go and loot IG markets.

Hope that helps
Regards & Cheers.

Good post but in short...trade on basis of True leverage=(Trade size)/(account size).

yes high leverage can kill you beware!

i dun know why u need such high leverage

Bcoz
if few Trades go Good, they will have nice %age Equity up in their account
&
if even one goes wrong, they will curse the broker & luck

No hard feelings for newbies ...thats the two faces of LEVERAGE COIN
I suffered from same when i was new.( to an extend). Was no body to inform the real thing.
You dont do it At least.

Regards

High leverage is always good if you have a good money management strategy
liteforex has 1:500 and many others. you can find them here BrokerLeader.com

Hi all,
Could somebody here telling us MT4 brokers with over 1;500 leverage,1;700,1000 or more?
Thank you all

I would say that trading with high leverage should only be attempted by experienced traders because yes, you can make great profit, but you can just as easily crash and burn. With little to no experience it is usually the latter.

If high leverage was such a great thing then every broker would offer it, but they don't.

I have traded for some time now and I feel pretty confident. I have strategies in place for various situations and types of trading but I would never risk the high leverage. If you are learning or about to open, any seasoned trader will tell you that the most important thing to have is great execution. This will simplify your trading to no end, having confidence in your platform is very important. The guy trading 1:700 who has a platform that slips no end will soon rue the day he opened with them. My broker is ACM, they offer 1:100 leverage starting with 10k lots and up to 100k lots. This is enough for me because the execution is exceptional, and I mean under all market conditions. For the person who talked about receiving profit back, this too is very important - my guys do it within the usual 3-4 days.

try tadawulfx, it suits me, or fxopen, they all have 1:500, that includes instaforex, forexmetal, eglobal

don't know about 1:1000, and only one that I know with 1:700 is IG Markets

There should be somewhere a site with all brokers listed, I will look at it in my bookmarks, but don't know if I can post a link

Go Markets also offers 1:500, with tight spreads. Would like to know how they stand up to Pepperstone's Razor though. I've read the "MY BROKER COMPARISION" but wouldn't mind hear others opinions.

insta is a SCAM & russian shop bucket forget about it!!!

I don't understand how people can stand here & recommand such bucket shop.

13

Why would anyone need 1:500 leverage?
To lose your money faster?

Fxopen also offering 1:500 leverage

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No referral link inserted here. Pure info sharing post.
thnks

Because the IBs love their commission, and keep promoting it.

cheers

Reflexing about the leverage, guys, I would say that for me higher is leverage the better are brokers conditions. It doesnt mean that you should have a deal with a big lot you just at the same time got an opportunity to have a smaller margin and to open more positions.

ACFX, Tadawull, FxOpen, Accent forex, Gomarkets, hotforex and many others. There is also a big list of such brokers on forexbrokerz.

Big opportunity by the IB's. Just ignore those Insta forex promotion.

Insta is very agressive with his traders. I think it lives only because of its big promotion-hense many newcomers,and their training courses. They don't care what people say about them.