5 Best High Leverage Forex Brokers 2021

5 Best High Leverage Forex Brokers 2021

The chief attraction for forex trading enthusiasts is the associated high leverage. A lack of knowledge with respect to how leveraging actually functions is the reason behind its less than full use. We will guide you through the nuances of leveraging. We will also recommend to you the brokers we believe are the 5 best high leverage forex brokers in 2021  internationally. These are Trade ATF, ROinvesting, T1Markets, TradedWell, and ETFinance. 

Top 5 High Leverage Forex Brokers:

Trade ATF 

Why is Trade ATF your money multiplier?

Like all the other brokers we recommend here, Global Trade ATF is fully above board when it comes to its regulatory and license status. Under the aegis of IFSC, this broker offers more than 250 tradable assets, across all conceivable asset classes. 

It has earned rave reviews, apart from awards, due to its stellar features. Its automated trading platforms are in full concordance with the internet. You have unique trade execution at 100 GB/s bandwidth. 

You can reach an overall leverage level of 1:500. Spreads are uniformly narrow, while margin call level at 100% puts your money (not to say risk) management concerns at rest. 

There’s value with stop out at 15%. Get your instant account in 3 simple steps – start trading with an execution speed of 0.04 seconds! 

Leverage 

The leverage available through Trade ATF (sponsor of the Argentine National Football team) depends on certain factors. This includes where you are trading, and assets being traded. 

On account of ESMA/MiFID 2 laws, European markets and UK have leverage downsized to 30:1 on all accounts. Within the UAE, the leverage limit is 50:1 across all accounts. 

In Australia, too, the limit has been defined as 30:1. In other jurisdictions, however, it is possible to use the 400:1 leverage ratio. For traders based in Poland, leverage up to 100:1 is available. 

ROinvesting 

Why ROinvesting is your best bet?

CySEC regulated, the broker makes commission-free trading available. Each account type carries relatively higher swap discounts. The trading platform has more than 30 technical indicators, making trading a truly enlightening experience. 

You can view trading history on your trading app. The ROinvesing customer service executives take up the initiative quite readily, in the rare event of any considerable issue. Even if any withdrawal arrives on time, you can rest easy for your money’s in safe hands!

Leverage 

The leverage available through ROinvesting (sponsor of the AC Milan Football team) depends on certain factors. This includes where you are trading and assets being traded. 

On account of ESMA/MiFID 2 laws, European markets and the UK have leverage downsized to 30:1 on all accounts. Within the UAE, the leverage limit is 50:1 across all accounts. 

In Australia as well the limit has been defined as 30:1. In other jurisdictions, we can assert positively, it is possible to use the 200:1 leverage ratio.

Among traders based in Poland, leverage up to 100:1 is quite popular. 

T1Markets

Why T1Makets make you a winner?

CySEC regulated, the broker offers segregated accounts as well as negative balance protection. There are more than 300 tradable assets. SSL protection, firewalls, and unique data encryption keep your money safe. A member of the Investor Compensation Fund, T1Markets is a superlative representative of CySEC regulated brokerages. 

Leverage 

Reflecting the trend in-laws across the globe, retail accounts with the broker offer 1:30 leverage ratio. However, provided you can give ready evidence of being a professional Forex trader, you can have a variety of high leverage offers. 

Across account types, leverage ascends from 1:200 in the silver account through 1:400 in the gold account. Finally, for the pros, the Platinum account offers 1:500 leverage. 

TradedWell

Why TradedWell is very reliable?

Also, CySEC regulated, TradedWell offers commission-free trading with more than 170 tradable assets. Silver and gold features in the respective account types ensure 50% swap discounts. 

The broker’s trading platform offers services across 9-time frames. The TradedWell trading app is equipped with more than 60 analytical tools. The Virtual Private Server or VPS ensures privacy as well as extremely swift trade execution. 

Leverage 

Reflecting the trend in laws across the globe, retail accounts with the broker offer 1:30 leverage ratio. However, provided you can give ready evidence of being a professional Forex trader, you can have a variety of high leverage offers. 

Across account types, uniformly, leverage ascends up to 1:500. 

ETFinance

Why should you trade with ETFinance?

Another CySEC giant, the broker, is eminently suited to beginner traders. In common with other brokers of this regulatory background, ETFinance is committed to keeping your investment safe from volatility. 

The broker holds client funds in segregated accounts, in collaboration with reputed EEA credit institutions. Also, it is a member of the Investor Compensation Fund. 

The liquidity provider to ETFinanace is also CySEC regulated. 

Leverage 

Reflecting the trend in laws across the globe, retail accounts with the broker offer 1:30 leverage ratio. However, provided you can give ready evidence of being a professional Forex trader, you can have a variety of high leverage offers. 

Across account types gold and platinum, uniformly, leverage ascends up to anywhere between 1:400 and 1:500. 

The right leverage level with 5 best high leverage forex brokers 

Trade ATF, ROinvesting, T1Markets, TradedWell, and ETFinance are all high leverage forex brokers and committed to your superlative trading experience. The following is replicable at any of these brokers. 

As a novice trader, you may follow the leverage rules given hereunder: 

  • Keep leverage levels low; 
  • Reduce downside with the use of trailing stops; 
  • On each of our positions, limit capital to 1-2% of total trading capital. 

While you are still learning, it is more than appropriate to work with a lower leverage level, say 5:1 or 10:1. 

Limit or trailing stops show traders how to reduce losses in the event of price movement in an unforeseeable direction. The use of limit stops ensures for investors that they can go on learning currency trading. They should also know how to limit possible losses in case a trade fails. 

These techniques help dealing with impending psychological mistakes. This they do by enabling traders to emotionally distance themselves from pressure points in trading.

What does leverage mean for you?

Leverage has to be important if you wish to make your bread in the market. You could almost say it is the lynchpin of your trading plan. 

Leverage denotes a credit that brokers give to their traders, enabling them to open big trades. These often turn out to be more profitable. 

Conversely, margin denotes the borrowing of funds by a trader to trade in financial instruments. 

Instances of leverage 

On a fundamental level, leverage is used by very large companies. Come to think of it – even countries use leverage!

Taking this at the smaller level – we have an entrepreneur starting a business with $5 m. He goes to a bank and takes out a $20m loan. With this money, he sets up a plant and stocks his company. 

Part of the revenues will be used to pay the lenders. When the business is not able to pay the lenders, the creditors can have the company liquidated. 

Countries use leverage to fund development projects. The US with a GDP of nearly $18.5 trillion dollars has total debt exceeding $21.2 trillion dollars. Considering its great overall credit rating, lenders are eager to provide credit in the shape of treasury bonds. 

CFD/Forex Trading Leverage 

This concept has applications in the forex markets. Companies wish their clients to enjoy profit. Therefore, they proffer various leverage ratios, assisting traders in trading more assets, maximising opportunities.

The leverage ratios offered can range anywhere between 5:1 and 500:1. 

Leverage size depends on the assets. For instance, the maximum amount for inherently volatile cryptocurrencies is generally much less than that of forex currencies. 

Expecting major market-impacting news, they reduce leverage for specific assets. 

This is a risk minimisation measure in the event of a major market shock. For instance, a few high leverage forex brokers were brought to the brink of bankruptcy when, in January 2015, the Swiss National Bank unpegged the Swiss Franc from the Euro. 

Broker-offered amount assists traders in trading more – even to trade in assets they could in normal circumstances never afford without leverage. 

For instance, a trader with a $1000 account would as a rule find trading gold futures challenging, trading as they do in the neighborhood of $1200. However, when the trader utilises a 100:1 leverage, he can readily buy up $100,000 gold futures. 

Why is leverage significant at all in forex trading?

Leverage reduces the amount of capital a trader requires in order to open a trade. Some folk erroneously perceive forex trading as a big-money investors’ thing. That’s not entirely correct.

 Leverage, in fact, is a democratising force. Your $100 can too get a piece of the pie. With a sound ratio, you can trade in amounts previously deemed inconceivable. 

Leverage and profits 

Leverage is a profit-enhancing tool. Upon the price of a financial instrument making a minor modification on the upside, the trader receives a fat profit. 

For example, when an asset’s price shifts by one pip, a 100:1 leverage denotes higher return vis a vis 50:1. 

Nevertheless, you should note that possible losses rise in direct proportion to the leverage ratio. 

Caveat 

All new traders must take the concept of leverage very seriously. Being over-leveraged can expose you to massive risks. You will have to know where to draw the line since you know our own trading plan best. 

A balanced implementation of leverage in your trading strategies will prevent an under leveraged position. After all, you do wish to become reasonably wealthy! 

Practical Trading Leverages 

Leverage practically is a loan that enhances your trading capital. A higher leverage ratio equates more returns, conditional upon favorable markets. It must not be forgotten, however, that the obverse is true as well. When a price moves against your position, a higher ratio denotes massive losses. 

Being a novice trader, you should be circumspect about prospects of sudden riches. Do not be too eager to take up very high leverage. In sub-seconds, your account can be taken to the cleaners in the event of an unforeseen price movement. 

To prevent such an eventuality, start with a low leverage ratio, steadily garner your returns, and be mindfully aware as you develop an understanding of how you work your own trading strategies. 

Is high leverage good? 

We will discuss if high leverage is fatal to your dreams. Leverage is only as good as the trader can make it. 

Once you reach the position that you have no grounds common with the Uninitiated, there is every reason to believe you can make high leverage ‘grist to your mill’. 

The High Leverage Bugbear 

There are actually leverages that give higher returns inversely proportional to risk. That is true for certain classes of trading. 

Leverage does not change the possible profit/loss that a trade can make. In fact, it cuts down the amount of trading capital that ought to be used, in the process releasing trading capital for more trades. 

For instance, a trader wishing to purchase a thousand shares of stock priced at $20 per share would likely need just $5000 trading capital. This would free up the remaining $15,000 for other trades. That’s the professional take on the value and use of leverage. 

Aside from being an efficient use of trading capital, leverage can massively reduce the risk for specific types of trades. For instance, a trader intending to invest in ten thousand shares of an individual stock priced at $10 per share would need $100,000, and all that money would be at risk. 

Obversely, a trader wishing to invest in exactly the same stock with point-for-point the same possible profit or loss (denoting a tick value of $100 per 0.01 price change) with highly leveraged markets would require a tiny piece of the $100,000 (in all likelihood, just $5000). Only the $5000 would be exposed to risk. 

High leverage and prudent trading make a good couple 

For those in the know of things – true Pros – high leverage translates to ‘profits’. The novice trader need not expose his capital to risk. He can take his time learning and observing. However, there’s no call for him to label high leverage as a ‘rogue’ instrument. 

When he’s a Pro, he will be especially proficient in options and warrants trading, using judicious judgment to steer clear of trouble. Also, he will be adept at turning apparent risks into obvious opportunities. 

The market helps, especially if you have a clear head and have had a technically sound grounding. 

High leverage – the forex trading tool calibrated for Success 

With high leverage, you have two scenarios. Either you can have multiple earnings, or an accelerated price movement incorrectly handled will leave you a pauper. A very high caliber proficiency in risk management is called for here. Only an experienced Pro can pull this off. 

Leverage ought to be used once you secure your position against considerable losses. You have to be ready to trade large price cycles and swing moves. 

There’s just one way to make leverage work for you – by starting at zero leverage and, provided the price moves in your favour, you may pile up the weight onto your positions. 

Suppose your trading risk policy decides that you take just 0.5% risk per trade and suppose your account has a magnitude to the tune of $10,000. This implies a $50 risk. 

Suppose your pip value position is  $1 per pip. Now, 50 pips are at risk. Post your trade, giving you 25 pips, you can pull stop loss to break even, adding another position of the same size. 

The new position can have a stop loss at 50 pips. You would be putting $50 at risk even as the trade has two times the leverage. 

Compound your position 

You have just seen how you may incrementally compound your position by taking more leverage (conditional upon the trade moving your way). You will be awash in cash – by this time, the market will not retrace to your stop levels. 

A small oversight can ruin the entire chain. 

Trading high leverages with a small account 

Strict money and risk management trade a small account. Those are the only buffer against losses.

For instance, if a trending account only takes account of its required margin by $500, upon taking a $600 loss, the trader’s account will become inoperational. This will be corrected only with the addition of more money. 

As a rule, small accounts can only be used for trading markets with small tick values and low margin requirements. Small accounts are also restricted with respect to the trade management strategies they can use. 

The pressure to make profitable trade with a small account is so much more. There’s a lot more at stake here than would be in the case of a large account. 

The good news is that Pros trade small accounts too – and that with success! 

Trade your small account with leverage 

Trading using leverage permits small account traders to trade markets in the markets that are inaccessible to them through cash. 

For instance, straight trading individual stocks are contingent upon your supplying up to 30% of the trade’s value in cash(in case margin requirements are normal). 

However, trading the same underlying stock using the warrants/options markets only asks for 15% of the trade’s value in cash. 

Here, investors ought not to use leverage to increase the trade’s size. Rather, they should only seek to reduce the trade’s margin requirements. 

Keep to the one percent risk rule 

Trading with the one percent risk rule provides a small account with the safe magnitude of a buffer as a large account. This being a very dependable risk management technique, Pros also keep adherence to it. 

With luck -and insightful perseverance – your small account may turn one day into a big one. 

What does a high leverage forex brokers look like? 

You will have to pay attention to the following pointers if you wish to be able to select the right high leverage forex brokers – 

  • Margin Requirements – Despite the fact that margins have a statutory limit restricting them to 2% or 50:1 leverage, there are brokers operating elsewhere that offer 500:1 leverages on the major currencies; 
  • Trading software support – Many brokers come equipped with their own proprietary software while also offering well-known platforms such as the cTrader and the MetaTrader4; 
  • Commissions and fees – Forex brokers have a two-pronged strategy for making money – from spreads or commissions. With many brokers, there are only commissions and spread-only accounts available. Reduced spreads characterise commission accounts. Peruse fee charts on brokers’ websites carefully before deciding; 
  • Trade and account minimum – Capital needed to open an account differs across brokers. The same holds true for the amount required to complete a trade. All brokers have trade minimums, though some brokers may have no account minimum. 

High Leverage Forex brokers: Conclusion

These were the best high leverage forex brokers. Choosing the right forex leveraging level is contingent upon your trading experience, comfort level with various global markets, and your plan’s risk tolerance. 

Beginner- traders ought to get used to associated terminology. While learning, they ought to remain conservative. Only once they feel they can hold their own against a volatile market, technically highly competent as well as financially solvent, should they go Pro. Managing leverages also made easier with trusted forex partners like Trade ATF, ROinvesting, T1Markets, TradedWell, and ETFinance. 

FAQs

Are high leverages good for a Forex Trading Plan?

Leverages enhance your purchasing power, permitting you to avail of smaller moves in the market. However, if the position goes against you, you get margin calls. 

Is Overleveraging Harmful?

Going beyond the authorised margin equity you have overleveraging. This leads to a negative balance in your account, with the straightforward implication that overleveraging is harmful. 

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