- Leverage: 1:30
- Regulation: FCA, CySEC, And ASIC
- Min. Deposit: $10
- HQ: United Kingdom
- Platforms: MT4, MT5 And TickTrader
- Found in: 2003
FXOpen EU Is Authorized And Regulated By The Cyprus Securities And Exchange Commission (CySEC) And Holds A Cross Border License, Authorizing The Company To Provide Services To All European Union Member States.
FXOpen Started As An Educational Center Offering Courses Within Financial Markets. In 2005, A Group Of Traders Turned The Company Into A Global Brokerage With Offices In The UK, Russia, New Zealand, And Australia.
Today, The Broker Offers Services To Over 1 Million Traders Worldwide Including Canada, Germany, Vietnam And Nigeria. It Is Now One Of The World’s Leading And Fastest-growing Forex Brokers Providing Attractive Trading Conditions, Fast Order Execution Plus Access To The Industry’s Most Advanced And Innovative Technological Solutions, Including Four Leading Trading Platforms.
Regulation Varies By Trading Entity. UK Investors, For Example, Will Trade Under The FXOpen UK Subsidiary, With Oversight From The Financial Conduct Authority (FCA). European Traders Will Be Registered Under The FXOpen EU Entity With Regulation From The Cyprus Securities And Exchange Commission (CySEC)
Top 3 Brokers
What Is Leverage In Forex?
To Understand What Is Forex Leverage, Imagine A Situation When A Trade Is Made For Money Borrowed From A Third Party. In The Forex Market, A Broker Can “lend” Money To A Trader, Which Allows The Latter To Open Significantly Larger Positions As If He Has More Funds In His Trading Account. However, It Also Means That The Trader Will Incur Losses In The Same Proportion. Leverage Shows The Ratio Of Borrowed Funds To The Trader’s Own Deposits.
Let’s Have Leverage In Trading Explained By A Simple Example. Imagine You Need $100,000 To Make A Trade, But You Have Only $50,000. So You Borrow The Missing Money Against Your Deposit. This Ratio Of Your Own Money To The Value Of The Loan Is Called Leverage. In Your Case, It’s 2:1. But It May Also Be 10:1, 50:1, 100:1, Etc.
The Higher The Leverage, The Less Your Own Money You Put Into The Deal. For Example, When Opening A Deal For $100,000 With Leverage Of 1:1, You Need To Invest The Whole $100,000 Of Your Own Money. But When Trading With Leverage Of 1:20, The Amount Of Deposit Will Be Reduced To $5000!
So Does Leverage Increase Profit? This Question Does Not Have A Simple “Yes” Or “No” Answer. Leverage Allows You To Open Trades For Large Amounts. If The Market Goes In The Right Direction For The Trader, Their Profits May Be Several Times Higher Than If They Were Trading With No Leverage. But The Risk Also Increases Proportionally. When Used Wisely, The Lever May Quickly Increase Your Capital.
When A Position Is Opened In The Forex Market, The Market Moves Either Towards The Trader’s Position Or Against It. Each Pip In The Price Movement Corresponds To A Fixed Amount Of Capital That Is Added To Or Deducted From The Trading Account Balance. If The Market Moves In The Direction Of A Trader’s Position, The Trader Earns Money; If Not, The Trader Suffers A Loss.
Currency Trading Is Performed As “contracts” For A Certain Number Of So-called Standard Lots. Each Lot Is Equivalent To 100,000 Currency Units. If The US Dollar Is Used As A Quote Currency And Trader Opens A Position For One Standard Lot, He Buys Or Sells 100,000 Units Of This Currency.
Since The Currency Price Movement Is Measured In Pips (each Pip Corresponds To A Share Of 0.0001) When Trading A Standard Lot, Each Point Costs $10 (0.0001 X $100.000 = $10). If A Trade Brings 10 Pips Of Profit, The Trader Earns $100. If The Price Goes 10 Pips Opposite The Position, Then The Trader Loses $100.
Few People Have Such Funds That Allow Trading Currencies Amounting To $100,000, Therefore You Can Use Currency Trading Leverage, I.e. Borrow Money From A Broker To Make A Trade Of $100,000 In The Absence Of $100,000 On Your Trading Account.
✅ Heavily Regulated Broker With A Strong Establishment
✅ Wide Range Of Trading Platforms And Competitive Trading Conditions
✅ Global Expands Over 100 Countries
✅ Excellent Support And Technical Analysis Tools
❌ High Fees
❌ No 24/7 Customer Support
❌ Insufficient Amount Of Training Materials
❌ There Is No Way To Order A Call Back
❌ No Comprehensive Educational Materials
FXOpen Broker Gives Its Clients The Ability To Use As Much As 500:1 Leverage With Some Of The Best Forex Account Options Available.
Aspiring Traders Can Open A Micro Account At FXOpen Broker With As Little As $1, And Immediately Gain Access To Leverage As High As 500:1. It Also Has Great Account Options For More Experienced Traders. An ECN Account With FXOpen Broker Can Be Opened With $100, And Gives Traders Access To Stocks And More Than 50 Currency Pairs, In Addition To CFD Trading. Our Crypto Account Also Offers Leverage Up To 10:1.
Using Leverage Is Always Going To Carry Risk, So FXOpen Broker Gives Its Clients The Industry-standard MT4 And MT5 Trading Platforms To Manage Buy And Sell Levels With Some Of The Best Trading Platforms Ever Created. FXOpen Has Also Re-launched The ECN TickTrader, A Comprehensive Trading Platform With More Than 1200 Trading Tools And 1:500 Leverage.
FXOpen Broker Was Founded As An Educational Platform For Traders, And It Maintains Its Dedication To Helping Clients Become The Best Traders Possible. If You Want To Learn More About The Educational Resources That FXOpen Broker Offers.
In Order To Provide Leverage To Their Clients, Forex Brokers Require A Certain Amount Of Funds To Be Deposited In The Trading Account As Collateral To Cover The Risk Associated With Taking Leverage. This Deposit Is Called Margin And Leveraged Trading Is Sometimes Referred To As Trading On Margin. Each Broker Has A Different Margin Requirement, Based On The Type Of Account (standard, Mini, Professional, Etc.), The Funds Deposited By The Trader, And The Type Of Financial Instrument That Will Be Traded.
The Initial Margin Requirement Is Usually Displayed As A Percentage Of The Total Transaction Value And It Could Be 0.5%, 1%, 2%, Etc. There Are Various Formulas For Margin And Leverage That Could Clearly Show How These Two Fundamental Concepts Are Linked. For Instance, We Can Calculate The Margin By Dividing The Value Of The Transaction By The Leverage. If We Use The Same Example From Above And Have $1,000 As Balance In Our Account, The Broker Offers Us Quite High Leverage Of 1:500 (or 500:1 More Precisely).
We Want To Buy 1 Standard Lot Of The EUR/USD Pair On A USD-denominated Account. To Get The Margin For This Specific Position, We Need The Value Of The Transaction, Which Is €100,000, And The Leverage, Which Is 500 (500:1). When We Divide €100,000 By 500, We Get €200, Which Is 0.2% Of The Transaction Value. This Means That While Our Position Is Open, Our Balance May Remain $1,000 But Our Equity Will Be Less – €200×1.10 (the EUR/USD Exchange Rate)= $219,52. This Is The Margin That Needs To Remain “locked” As Collateral So Our Equity Will Be $780.48.
In ECN Accounts, The Margin Call Is Triggered When The Margin Level (Equity To Margin Ratio) Is Less Than 100% (i. E. The Equity Of Your Trading Account Is Equal To The Margin Used To Open The Positions).
A Position Is Stopped Out (closed By Broker Automatically) When The Margin Level Of An Account Is Less Than 50% (i. E. The Equity Is Less Than 50% Of The Margin Used To Open A Trade).
Recommended for forex and CFD traders who prefer MetaTrader platforms and seek great account opening
74.89% of retail CFD accounts lose money
Explanation For How To Change The Leverage
The European Securities And Markets Authority (ESMA) Has Officially Announced The New Leverage Limits For Retail Clients Will Come Into Effect On 1st August 2018. The New Limits Apply To Every Broker Regulated In The European Union And Have A Direct Impact On The Amount Of Money You Need To Place A Trade. The New Leverage Limits Will Apply To Both Open Positions As Well As New Positions Once Implemented.What Are The Changes?The Full ESMA Document Can Be Read Here But Below Is A Summary Of The Main Changes To Your Account.Maximum Leverage:· 30:1 For Major Currency Pairs;20:1 For Non-major Currency Pairs, Gold And Major Indices;10:1 For Commodities Other Than Gold And Non-major Equity Indices; · 5:1 For Individual Equities And Other Reference Values;2:1 For Cryptocurrencies;Negative Balance Protection: Your Account As A Whole Will No Longer Be Able To Lose More Than The Funds On Deposit.50% Margin Stop Out: This Is Currently Already In Place For ECN Accounts But It Will Now Also Apply To STP And Crypto Accounts Which Are Currently 30% And 15% Respectively.Who Is Affected By The Changes?The New Leverage Limits And Negative Balance Protection Rules Only Apply To Retail Clients. Professional Clients Are Not Affected By The New Changes.If You Are Classified As A Retail Client, And You Meet 2 Of The Following 3 Criteria, You May Be Eligible To Opt Up To Become A Professional Client.
FXOpen Broker Features
|Withdrawal fee amount:||None|
|Inactivity fee charged (Y/N):||Yes|
|Spread from:||0.0 pips|
|Number of instruments:||500+|
|Time to open account:||1 business day|
|Demo account provided (Y/N):||Yes|
|Countries of regulation:||England|
|Products offered:||Forex, Indices, Commodities, And Crypto CFDs|
- Leverage Represents The Borrowing Of Capital To Increase Profits.
- In Order To Use The Leverage From A Broker, A Trader Must Keep A Minimum Capital In His Account. It Is Called The Margin.
- When Traders Use Leverage But Neglect The Principles Of Asset Management, They Risk Losing All Their Trading Assets.
- Leverage Increases Operational Costs For Each Trade. This May Mean More Profit, But It Also Entails The Risk Of Greater Losses If The Market Does Not Perform In Your Favor.