Leverage and spreads

[unclegober]

Spread and leverage are two important factors for traders to choose brokers. It's very important to choose only the best forex broker which would have attractive leverage (:100 or 1:200, 1:500 ), because such sites can be scam). We need to invest our money only into most trusted Forex brokers. otherwise, you can loose all your investments. Every new forex trader should choose one of the best and most attractive brokers and he should work only with one broker at first.

How about you?

[orni308]

No doubt a broker should be genuine, but many brokers lure traders by giving them high spreads , spreads are good only if you can utilize them otherwise they are very risky as you have to pay in equal ratios.

[unclegober]

There are so many tips to choose best broker, Firstly we check trading conditions including spreads, platforms and system which was important for us. i think the best options is find the broker who give you the lowest spread and fast execution. this really help you in long term trading.

[wuxiami]

I think we need to select best suitable and reliable broker, not lowest spread because broker will get it back from other places. As for leverage, always keep it below safe line set by you.

[dangtrader]

I wouldn't recommend you to trade with leverage more than 1:100 as it expose your account to a very high level of risk. Regarding spreads I can say that for scalpers zero spread account is best I found one in Hotforex, they offer zero spread for EUR/USD when market is in flat and in volatile conditions spreads are mostly waves around 0.1.0.3 pips.

[unclegober]

I usually have high leverage and always looking for the smallest spread as possible in the forex brokers and in the pairs. Leverage for me is to use 1:500 on TICKMILL.

Leverage is a good factor to the traders can make more profit. But leverage is also a double-edged sword for anyone to use it. if you do not use the leverage effect will cause a large debt and you can not pay it. it will affect our mentality and you do not know how to overcome it. The best we should use the leverage in line with our abilities.

[dangtrader]

Spread is much more important than leverage because you can change trade risk by using different lot size but you can't change spreads. What you can change is charging scheme for example in case of Zero spread account in Hotforex there is raw spread+commission scheme, in case of fixed spread its a bit bigger than usual but its fixed and doesn't widen during volatility.

[unclegober]

Money that does not belong to be is available to me only at a cost. such money carry huge risks too if one does not know how to manage it well. traders must learn all lessons relating to right leveraging, lot sizing and proper money managements etc. its important to know when to trade and when to abstain from trading. now I use tickmill. this broker provide me EUR/USD pair with average raw spread 0.1-0.3 pips

[BubbleGum]

Leverage is the amount of money you can spend as a result of borrowing investment capital. Basically, the more leveraged you are, the riskier your position—a decrease of a few pips could mean losing all of the money in your account. Most forex calculations are displayed in pips.

[dangtrader]

Spread is much more important than leverage because you can change trade risk by using different lot size but you can't change spreads. What you can change is charging scheme for example in case of Zero spread account in Hotforex there is raw spread+commission scheme, in case of fixed spread its a bit bigger than usual but its fixed and doesn't widen during volatility.

[mlawson71]

Many jurisdictions, including the entirety of the EU, the UK and Australia have banned leverage above 1:30 due to the risks involved with high leverage, so brokers registered in those jurisdictions cannot offer leverage any higher than that.

[BubbleGum]

Spread betting is considered to be a leveraged product. This means that you would only require to deposit for a small fraction of the overall value of any trade, known as margin. For instance, if the margin requirement for a trade would be about 20% then you would require about 20% of the full value of the trade in your account for opening the position.

[chin100]

As I have witnessed in the Forex market, leverage can be tempting, but what causes our losses is usually our own greediness that makes us trade high lot sizes that are much higher than our account balances, which, in most cases, causes us to lose our gains and then blame the market.

trading platform

[dangtrader]

I wouldn't recommend you to trade with leverage more than 1:100 as it expose your account to a very high level of risk. Regarding spreads I can say that for scalpers zero spread account is best I found one in Hotforex, they offer zero spread for EUR/USD when market is in flat and in volatile conditions spreads are mostly waves around 0.1.0.3 pips.

[BubbleGum]

Most forex currency pairs are traded without commission, but the spread is considered to be one cost that would be applied to any trade that you place. Rather than charging a commission, all leveraged trading providers would be incorporated a spread into the cost of placing a trade, as they factor in a higher ask price relative to the bid price.

[PapiaKhatunAsha]

Both are important in Forex trading but choosing a reliable is more important than previously mentioned so in this sense FreshForex might be very reliable since they are in this area for more than 17 years.

[BubbleGum]

The forex spread is considered to be the difference between a forex broker's sell rate as well as buy rate when exchanging or trading currencies.

[mlawson71]

Keep in mind that some countries are pretty strict about their leverage caps - for example, Singapore lowered its cap further from 1:50 to 1:20.

[BubbleGum]

Leverage is considered to be of use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.