If you’re new to forex trading, you may be wondering what the term forex trading leverage is all about?

Well it’s actually one of the big advantages that forex trading has over trading in say stocks and shares for example.  And here’s why…

Leverage basically means you can trade as though you have a lot more in your account than you actually have.  Sound good?  Well read on …

For example, some brokers offer leverage of up to 400-1, which means if you place up to $1,000 in your trading account, your broker will allow you to trade as though you really have $400.000!  Yet in reality the maximum you can lose is your $1,000 investment that’s actually in your account … so leverage is pretty cool!

Whilst the leverage offered by your broker is important, it’s not your only consideration.  

You should also look for the following in the trading platform provider you choose:

• the personal training offered

• the trading tools offered including charts, outlooks, news, financial calendars

• ease of platform – can you do everything online or do you need to download software

• how quickly can you can start trading

• the level of personal service offered

• easy deposit methods – such as PayPal, credit cards, Wire Transfers

• 24 hour access to your account

• leverage offered

• tailor-made accounts and spreads

• real-time exchange rates

• no hidden costs – commissions on deposits or withdrawals

• no maintenance margins

• cost of renewal/rolling fees for Day Trades

• guaranteed rates and stop loss limits

• security and safety of the site and your information

• a company that has a regulatory license for your region

• genuine company with real people in real offices around the world.