The leverage you use on any forex trade will depend on the restrictions your broker allows you to apply and the level of risk versus reward you want to take on. Starting with customer data and money protection and up to customer support service. All I would say is that it’s one of the most credible brokers on the market right now.

And on top of https://worldtradex.blog/ that it doesn’t charge additional commissions for that. It’s cool that I can manage other accounts using this broker with the multi-account managing feature. It has very flexible settings so that I’m not bothered about the deposit amounts of my clients. Since I have several of them, and each one has his own funding capabilities. Set up with offices in Cyprus and Vanuatu, worldtradex is a forex broker founded all the way back in 2010.

Is worldtradex regulated?

As most retail-oriented forex brokers, worldtradex operates on a ‘no dealing desk’ ECN/STP model where orders are passed on to larger liquidity pools rather than being matched internally. This trading method can also exacerbate losses and involve additional risks. Thus, we conclude that it is quite hard to enter the real market without knowing the features of Forex. Free margin is calculated as subtracting the used margin from total margin. Compare worldtradex with the top 3 similar brokers that accept traders from your location. We have not experienced any security concerns during our many hours using the trading platform.

Trading instruments

Wire transfers incur a $30-$45 flat fee (minimum limit of $500), many times more than the $5 withdrawal fee at eToro. Importantly, all deposits are fee-free, and e-wallets like Skrill and Neteller process within an hour, compared to 5-7 working days for wire transfers. On the surface, this is an ideal offering that provides the best of both worlds, though in practice we found some instruments pricier than others, so you shouldn’t expect superior pricing across the board. Once you take the leverage on offer from your broker, you must meet the obligation of this liability.

• The sign-up process is also pleasingly simple and there is a swap-free solution for Muslim traders available upon request.
• You must ensure a level of margin is available in your account for every trade you execute.
• worldtradex operates in a regulated environment, which ensures a safe and supportive trading experience.
• It also provides negative balance protection in case of insolvency.

Leverage can also mitigate forex trading volatility, which is another crucial advantage. Because volatile markets move in broader cycles than more stable ones, volatile trades often deliver tremendous profits. Moreover, since forex markets are deregulated, and the parties dealing in currency are cautious, few external factors can affect the exchange rate, and volatility tends towards the lower end.

In terms of trading instruments offered, worldtradex has a selection of about 70 forex pairs, in addition to a handful of cryptocurrencies, stock indices and commodities, all of which are traded as CFDs. The broker does not offer any single stocks or bonds, which is something we believe some traders will miss. Yes, worldtradex is regulated by the Cyprus Securities and Exchange Commission (CySEC) and is considered a low-risk trading broker. While St. Vincent & the Grenadines is an offshore zone with less strict financial regulations, worldtradex is still considered safe to trade with due to its authorization by the European regulator.

worldtradex has earned a good score for its fees due to the tight ECN spreads combined with no commissions, an unusual pricing model that places this brand among the cheapest forex brokers we have reviewed. worldtradex’s investment offering is excellent for forex traders but weak in other departments. worldtradex offers a decent selection of payment methods including standard card and wire transfers as well as crypto and e-wallet solutions. This is a convenient range and I was especially happy with the inclusion of crypto payments as these are highly flexible and should work for traders based almost anywhere. If the underlying currency in one of your trades moves against you, the leverage in the forex trade will magnify your losses. Losses can end up massive, and profits can shrink with forex leverage.

Looking at the negatives, the coverage outside Europe, while fairly industry standard is disappointing, with the global entity registered in Nevis as an International Business Corporation (license number C55272). For example, 10 pip move of a micro lot will amount to $1 and 50 pip move of a micro lot will amount to $5. For example, 10 pip move of a mini lot will amount to $10 and 50 pip move of a mini lot will amount to $50.

The Weird and Wonderful World of Forex

However, some FX specialists like Forex.com offer thousands of additional instruments, so it’s disappointing to find just 27 non-forex assets on the worldtradex platform. Recall that price movements are measured in pips and each pip move in a standard lot represents https://worldtradex.site/ 10 units per trade. Take, for instance, Trader A in our earlier example is an aggressive trader. He purchased 5 standard lot of EurUsd with his $10,000 account size. The same token goes if the broker offers its traders a lesser leverage size.

What is leverage in forex trading?

One of this platform’s biggest advantages is its support for automated trading via Expert Advisors (EAs), which have long been favored by algorithmic traders and which we feel are yet to be surpassed. This long-time industry favorite is starting to show its age after decades since its release, and we prefer for brokers to offer a selection of platforms with newer and slicker options, especially for beginners. On the downside, worldtradex supports accounts in just a few currencies (USD, EUR, GBP), with USD only for wire transfers.

ECN Forex Trading

In summary, a situation where a margin call might occur is due to use of excessive use of leverage, with inadequate capital, whilst holding on to losing trades for too long, when they should be closed. Leverage can help you to squeeze profits out of FX trading when volatility is low. Even minor price differences and small movements can result in gains if you apply leverage power with care and skill. Your broker will then instruct you to increase the capital in your account and recommend what the leverage limits are on the transaction you want to make. You can apply different leverage levels up to your broker’s limits by selecting from a typical drop-down menu on a platform. The broker will have automatically programmed their platform to help you in this process.