247mm posted: How can smaller leverage cause more losses for traders? Makes no sense. Big leverage is good for shady brokers...it only takes 10 pips to blow up an account at 1:1000 leverage or 20 pips at 1:500 leverage, when using it all, and such brokers have no problem to increase the spread to even 50 pips for a second, to do exactly that.
Exactly like this: retail traders goes to offshore forex brokers with high leverage - which usually a bucket shop. So traders loses their money.
I wish usual leverage 1:500 for FCA UK brokers could be restored for retail traders as soon as possible. But it will unlikely to happen in 2020 as I see from the FCA response in the other comment here 😞
UK is in Brexit transaction period right now. It will end in 2020. After that, hope we will see some change.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.