Broker to Trading

The brokers in the table below are all regulated brokers which offer high leverage. As leverage in the EEA and other jurisdictions has been restricted, then they are in what are termed offshore locations. The trader might want to consider that increasing leverage increases risk. With high leverage the trader can increase their account exposure to adverse moves.

When trading Forex and other leveraged markets, adverse moves are to be expected, as markets trace out patterns on the chart. Markets move in complex patterns composed of up and down moves, as the trader is typically attempting to find a directional move this can result in moves against the traded position.

With increasing leverage, the trader can potentially take position sizes with a larger value per each move. While this can create grater gains, it also can produce greater losses. If market moves in the direction traded, then the value of each move with be added to the account and if it moves against the traded position the value of each move will be subtracted from the account. These losses or gains are only realised when the position is closed, but they are still depleted from the account value and can trigger a stop-out. The trader can reduce their position sizes as a way of reducing the value of each move. A judicious use of leverage and position size may help alleviate some of the problems with using leverage.

What leverage and smaller position sizes can enable is the capacity to take positions with smaller account sizes. If leverage is lower, then the trader may need to use smaller position sizes with a smaller account size. However many brokers do not offer Forex sizes lower than micro lots, but some do, and these are what are termed cent account brokers.

In the table above, most of the brokers offer trade sizes down to micro lots, however since they have higher leverage then the trader may be able to open positions with smaller account sizes (e.g. using an account size around the minimum deposit), if they wish to do this. When trading the trader needs to consider the ability to withstand adverse moves, as well as the possibility of encountering them.