Newbie trader in Spain (EU) – low leverage

[Anonymous]

Hello all!

I’m really keen to trade crypto CFDs, however the highest leverage I can get on crypto currency USD pairs is 2:1.  I’ve bought two of Petko’s courses on crypto trading which I’m working through.

I don’t have a finance professional background or half a million in assets, and I haven’t traded 10 or more times trades worth 10k or above so I don’t qualify for higher leverage than 2:1.

I checked out other brokers outside the EU, but it’s a minefield with scam brokers , or brokers that won’t allow EU residents to open accounts with higher leverage than 2:1.

From what I have read, and please correct me if I’m wrong, but a minimum leverage ratio is needed to make forex trading profitable if starting with a small cash balance, say $2000.

Can anyone suggest what options I may have? Or should I stick to trading fiat currency pairs instead? Or is leverage of 2:1 BTCUSD realistically profitable due to its extreme volatility?

If anyone can help that would be great.

Thanks!

Andrew

 

[Anonymous]

Hey Andrew,

Welcome to the Forum! Yes, the new regulations are a bit tide and especially when we were used to trading last year with bigger leverage, now it seems a bit more difficult but it is not. These restrictions were placed to limit the losses in the traders. Also, the brokers started to benefit less, not as they used to be.

Now trading with lower leverage is really not an issue. You will have a smaller risk indeed and profit can always be achieved.

Give it a try on a Demo account and see how much you would fit trading from let’s say 2k account.

As a beginner trader try not to think so much about the leverage and the potential profits you can do but about the strategies you will use. Try to learn and master the system you plan to use. Once you are good at it, the leverage won’t be really an issue. But if you do not have a profitable system that you can apply, everything will be an issue :)

[Anonymous]

Hi Petko!

Many thanks for the reply. So if I’ve understood correctly, you’re stating that the most important first step is to learn and practice to perfect your trading technique.

Makes sense. Walk before you run.

Cheers

[Anonymous]

Hey Andrew,

Petko gave you the best piece of advice in trading :)

I was also warring a lot at the beginning about the leverage, the type of account, what currency it will be….unfortunately I understood that this is not the most important, the hard way. I zeroed 2 live accounts.

So yes, you need to learn and master the strategies or the trading system you are going to use and the rest will just come as you go. When you practice the strategies, the EAs, or whatever you trade, just switch from a broker to broker, and fit your trading so when you feel ready for the live push, you will know how to do it.

Cheers,

[Author]

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