Many popular forex companies are providing less leverage for the beginners or for experience traders too there is a reason behind that move which is actually good for companies and traders lets take a look.
Every fx forex traders knew forex market is huge and has both profit side and loss side, when it comes to leverage as many websites said it is a double edge sword can cut your bad, for example if your leverage is 1:50 you can control limited amount of money in the market which is like if you have set your leverage 1:100 which maximum number of brokers are providing with 1000$ capital money you can control upto $100,000 in fx market.
And imagine higher rate of percentage 1:200, 1:500 will double these amount but wait the risk is also too high for this, not only your capital investment may affected and also loss beyond capital is possible, only some regulated forex brokers are offering negative balance protection which actually ended up company asking money back to you to fulfil loss made by you.
In 1:500 or above is leverage usually set by the big experienced traders who know a to z in the market even they also fail some times, it may test your emotion and loss some times so if you are less than 2 years old in fx market don’t try to participate in high leverage option
For this reason only many popular fx brokers are providing less leverage and may increased upon your request and your skills + experience, always test your skills with demo account which is widely provided by various brokers, some brokers also giving various leverage option to demo accounts too.
Many forex companies are testing your skills before they increase your leverage options, on first step you must have 2+ years experience in forex market, no 2 you must answer the question in online or over the phone plus income capablity whether you cane compensate any loss or not.
you may also like article earlier published buy stop limit vs sell stop on our site.