HIGHEST LEVERAGE BROKERS

Trading forex can be exciting for beginners in the trading industry, but after a while, once they become experienced traders, they often find that they are ready to step things up a notch and try out something riskier. With increased risk, they typically also encounter higher rewards, which is a good mix to bring the excitement back into trading for them.

Trading with leverage is, therefore a perfect solution. However, in order to give yourself the best chance to earn higher rewards, you first need to find a proper broker. This is why we came up with a list of top 10 brokers that offer high leverage in a safe environment, and tick all, or at least most of the right boxes.

After extensive research, we have come up with a list of top 10 best high leverage forex brokers for your convenience, where you will, hopefully, find at least one that fits your needs. Without further ado, here are the ones we can recommend.

High Leverage Explained

While you may be excited about the idea of heading to one of these platforms and trading with leverage right away, always remember that gathering information is your top priority at all times. With that said, let’s first explain some details regarding high leverage.

What is Leverage in Forex Trading?

Simply put, leverage in currency trading refers to the money that the trader borrows from their broker in order to invest a greater amount than what they wish to use themselves. This is a good way for traders to preserve their own capital, by using only small amounts of their own money and borrowing the majority of it from the exchange.

Naturally, there is a cost to this privilege, as the broker will charge traders an interest rate on the funds that they have borrowed. This is called a swap fee, or sometimes the overnight fee.

What is Considered a Good Leverage Ratio in Forex Trading?

Generally speaking, there are multiple factors that decide whether or not a certain leverage ratio can be considered good. For example, the higher the leverage, the more money is at stake, which is more stressful, as well as more risky, as you have less room for error and greater chances of losing the money. Of course, risk-lovers would say that it is more exciting, but not everyone feels that way about it.

In other words, each trader needs to decide which leverage ratio are they comfortable with. In addition to that, traders also need to decide on a trading strategy and use a leverage ratio that they are comfortable with, and it fits their strategy. Lastly, there is a matter of the market trading conditions that traders want to trade-in. For example, trading crypto is extremely risky even without leverage, which is why most brokers do not offer particularly high leverage for this market. Forex has less volatility, and so less risky, so higher leverage can be used.

Why Leverage Trading is Beneficial?

Leverage trading is beneficial because traders get to use greater amounts of money without that being their own money. As a result, their rewards are much larger if they trade right, while the risk on their own, personal wealth is reduced. Leverage can be a great tool for traders, provided that they use it correctly. But, always remember that the risks grow alongside the reward, so the greater the leverage ratio you use, the smaller the room for mistakes.

Tip For Trading With High Leverage

• Use trailing-stop order
• Use other risk management tools that your broker of choice offers
• Understand the value of a pip before entering a position
• Use a risk-reward ratio
• The high-leverage ratio should only be used for short-term trading, while low leverage ratio can be used in long-term investments