If you have realized anything about forex trading or forex brokers, its that most offer an extreme amount of leverage. It is very common to see leverage of 50:1 to 500:1 or even more.
Brokers that offer its clients 500:1 or more leverage can be dangerous to unexperienced traders.
Leverage is a double edged sword, where profits are multiplied but losses are also proportionally magnified.
Some brokers prey on potential traders that can easily drain their accounts while trading with high leverage.
Doing our research on Forex brokers that offer 500:1 leverage, not all can be trusted and treated equally.
500:1 Leverage Broker List
Recommened Brokers With 500:1 Leverage
|Regulations||ASIC, FSA, CySEC|
|Account Base Currency||USD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD|
|Trading Platforms||Metatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM|
|Regulations||FSCL and FSPR|
|Account Base Currency||USD EUR GBP AUD NZD SGD CAD JYP ZAR|
|Trading Platforms||Metatrader 4/5|
Is Trading 500:1 Leverage Safe?
Trading with high leverage is a double edged sword.
Most beginners underestimate the potentially high likelihood of how fast high leverage can eat away at your account balance.
Trading leverage of 500:1 can be safe if you know what you are doing. Experienced traders use high leverage only when the time is right.
Experienced traders also understand the risks involved trading with leverage.
Trading with 500:1 leverage can be safe when keeping your trade positions small (small trading lot size), using proper stop-loss triggers and not letting greed take over.
It is always advisable for beginner to test there trading skills on a demo account first.
Can I Trust Forex Brokers that Offer 500:1 Leverage?
Lets be blunt. There are many scammer forex brokers that only look for traders to blow through their account balance.
Mainly, these are unexperienced forex traders.
At the same time there are dozens of trust worthy and legitimate Forex brokers that offer 500:1 leverage.
The most trust worthy brokers will include:
- Offer some kind of trading education or programs that are free.
- Recommend lower leverage for less experienced traders.
- Will be regulated in their region and will be in good standing.
- Highly rated and ranked.
Example of 500:1 Leverage Trading
Trading on a \$5000.00 account with 500:1 leverage.
EUR/USD 1 lot at 500:1 leverage = $242 margin used, or the cost of the position. 1 pip of fluctuation in the price = $10.00
EUR/USD 0.10 lot at 500:1 leverage = $24 margin used, or the cost of the position. 1 pip of fluctuation in the price = $1.00
Its clear from our examples above that trading with high leverage of 500:1 can quickly put you in the red.
Ideally you should keep your lot positions as small as possible, that is proportional to your account balance and risk tolerance.
Higher account balance + Smaller lot sizes = Less risk.
Lower account balance + Bigger lot sizes = Higher risk.
About This Article
Author: Mark Prosz
Sources of information and credits for this post include: https://www.investopedia.com/articles/forex/092115/how-much-leverage-right-you-forex-trades.asp