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Hello everyone!
I am trying to understand how you guys perceive high-leverage forex brokers. Does the amount of leverage an fx firm offers play any role in your perception of them?
Do you consider brokers offering high leverage (e.g., 1:500 - 1:1000-1:3000) scammers or more likely to scam you? For instance, let us say a broker has been offering 1:50 - 1:100 leverage for years, and suddenly, they introduce 1:500 or even more. What would you think of that? Does this raise any red flags at all?
The reason I am asking these questions is this. The only brokers who offer this type of leverage are based out of offshore jurisdictions with very light or absent regulatory regimes. When they introduce high-caliber leverage, I think they primarily target small account clients. Giving high leverage to someone with a relatively big account size would reduce the broker's ability to hedge their risk. So, my theory is that when a broker introduces high leverage, they start targeting smaller clients. Can this be a signal that there is something wrong with them and it is time to withdraw funds from them? What do you think?
I am trying to understand how you guys perceive high-leverage forex brokers. Does the amount of leverage an fx firm offers play any role in your perception of them?
Do you consider brokers offering high leverage (e.g., 1:500 - 1:1000-1:3000) scammers or more likely to scam you? For instance, let us say a broker has been offering 1:50 - 1:100 leverage for years, and suddenly, they introduce 1:500 or even more. What would you think of that? Does this raise any red flags at all?
The reason I am asking these questions is this. The only brokers who offer this type of leverage are based out of offshore jurisdictions with very light or absent regulatory regimes. When they introduce high-caliber leverage, I think they primarily target small account clients. Giving high leverage to someone with a relatively big account size would reduce the broker's ability to hedge their risk. So, my theory is that when a broker introduces high leverage, they start targeting smaller clients. Can this be a signal that there is something wrong with them and it is time to withdraw funds from them? What do you think?