CySEC Regulated Forex Brokers with the Highest Leverage
Forex brokers in Cyprus are regulated by the well-known Cyprus Securities and Exchange Commission (CySEC). However, since a new regulation (which is ESMA or European Securities and Markets Commission) is introduced, there are no high leverage forex brokers left in Cyprus.
According to the ESMA rules, forex brokers can offer a maximum leverage of 1:30 on major forex pairs to clients categorized as “non-professional” traders. This restriction is aimed to check the broker’s requirements for being a “professional,” but this usually requires a trading account of significant size. Nevertheless, some CySEC regulated brokers who are registered under other offshore jurisdictions can still offer the flexibility of trading with high leverage.
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How does high leverage affect trader's psychology?
Leverage disguises the real amount of funds in our account and any changes on it. In return, it might dilute the trader's perception regarding how much money they have. Using high leverage is not forbidden, but it is not advised when the trader has lack of self discipline.
Continue Reading at Traps Hidden Under Forex Leverage And Margin
Why don't professionals use high leverage?
Most professional traders don't use much leverage in their trades because with their account balance, they can already size their positions without having to use a stop loss.
Continue Reading at Do Professional Traders Use Stop Loss?
What is the structure of CySEC?
CySEC is run by a board of five people, along with two full-time staff members, a chairman, and a vice chairman. On the highest part of that, the Central Bank of Cyprus is represented by a board member who does not have a vote. The government is also attached to CySEC, in which the Minister of Finance makes suggestions to the Ministerial Council about who should be on the boards of directors.
Continue Reading at A Guide to Cyprus Securities and Exchange Commission (CySEC)
Should scalpers use high leverage?
Yes, they may need to. Scalpers often feel dissatisfied with the profit they got as they collect only small profits. They think it is not worth all the efforts they make. To overcome this, a scalper can use leverage for their advantage. The higher their leverage, the lower their margins need to be. It means they can use the bigger lot sizes to increase their profit targets.
However, many experienced scalpers recommend beginners to use small leverage in the first three months of trading until they find a suitable and tested trading method.
Continue Reading at The Secrets of Successful Scalping Strategy
