Sometimes traders wonder if ever there was a list of brokers offering high leverage with the low spread? Well, that’s what we are going to talk about in this guide.
Let’s start with the basic first. Leverage in Forex means you have large trading volumes with low investment. It is represented as a ratio in Forex trading like 1:100.
Now the higher the leverage, the higher the returns. If the trading leverage is 1:500, then you have $100,000 of trading volume, and your investment is $200 (1/500 of amount).
Trading with this much leverage can give you massive returns, but this can also be another way around. So, we advise you to trade with great care.
Every trader needs to familiarize him/her with Forex spreads. It is the difference between the asking price and the bid price.
Low range means that there is a small difference between the asking and the bidding price. This cuts the risks of higher financial loss. Also, low spread indicates that liquidity is high while volatility is low.
A major currency pair like EUR/USD has low spread while an emerging currency pair like USD/MXN has a higher range.
Now that we have covered Low Spread and High Leverage, it is time for us to give you a list of brokers with high leverage and low spreads. Choose the one that fits your need and keep trading.
More interesting articles:
• High Leverage Brokers in South Africa
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Risk Warning: Trading in the forex market using Contracts For Difference, Options, Spread Betting and any other derivative trading instruments implies the risk of losing your entire investment. Derivative instruments are complex financial instruments that may not be adequate for everyone. Anyone who decides to trade using derivative instruments does so at his/her own risk and has full responsibility for the potential losses. The general advice is to never trade with money you cannot afford to lose.