Broker to Trading

A feature of CFD brokers is that they can offer high leverage. Brokers may not offer high leverage for a range of reasons including that leverage is restricted in the region they operate. The reason leverage may be restricted is that as leverage increases, so does risk. With high leverage the trader can trade a market with higher pip or point values. This means that losses can accelerate in the trader's account.

Markets move in complex ways and can move against the traded position. With higher leverage these adverse moves can eat into the capital in the trader's account, perhaps triggering a stop-out. To counter the effect of higher pip values the trader can trade with smaller trade sizes, for example using micro lots.

If the trader wants to trade with higher pip values, then they can increase the size of their account. If the account size is too small relative to the pip value traded then risk can increase as adverse moves decrease the capital in the account. However with higher leverage the trader can potentially trade with smaller account sizes, but noting that increasing trade sizes (and therefore pip values) increases risk.

There are other reasons for trading with smaller trade sizes even if the trader has an increased amount of capital in their account as this can be a way to manage risk in general, no matter what the size of the account. To trade risk free the trader may use a demo account, which provides virtual funds which cannot be withdrawn. A demo account is a way to practice trading, test out ideas and to become familiar with a trading platform.

Best Broker With High Leverage

The pick of best broker with high leverage is Dukascopy Bank. Dukascopy Bank is regulated by the FINMA in Switzerland. It offers MetaTrader 4 (MT4) on which it provides Forex and Metals. However it additionally provides JForex, which is a relatively user friendly platform with a relatively wide range of technical indicators and supports automated trading with robots. The trader can also build and run automated trading strategies on MT4 (known as EAs).

Dukascopy Bank operates the FX Marketplace ECN, thus providing an infrastructure suited to a wide range of trading styles, from automated to non-automated. It allows styles such as scalping. Dukascopy Bank offers a relatively wide range and large number of markets to trade for an ECN broker, with 500+ available including Stocks, Cryptocurrencies and Soft Commodities as well as Forex, Indices and Metals (on JForex). The minimum deposit is $1000 for a live account, but the trader may sign up on the following links for a demo account and test out the broker and its platforms for free.