AAFX Trading 1:2000 leverage. Does it really work? Reviews?

#22
They've got 1:2000 for currencies trading only. Stocks have got a 10% margin requirement, so the max leverage is 1:10. There is no point investing with only $250 on account this way. It's like buying $2500 worth of stocks and that's the max, so you can't sit out any major drawdowns using the max leverage.
 
#23
Well, that's about one share of google that you can hold using $250 account :)
Sounds too little, yet if the info that they charge no overnight fees and actually nothing but spread - if that's 100% true this makes it not a bad investment opportunity in general.
 
#24
you forget guys that the leverage can be used in dozens of different ways. I'm a fan of a leverage, but I guess its the matter of taste. LIke some people don't like mortgages and debts overall, but others use it as a money-making tool, yet another opportunity they see.
And I also don't understand since when owning at least one stock of Google Inc is not worth even bothering :/
 
#25
Correct. The tuth is that very few people can treat debts/leverage as opportunities. For most of them this is the cage that doesn't let them make more money, limits the way they think and puts under high psychological pressure.
Only people that know how money makes money are ok with huge leverage and borrowing money.
 
#26
I don't know... myself I feel awkward when I borrow money, and I prefer not to at all costs. But I never considered leverage to give the same feeling or be the same thing
And yeah, one share of google is DEFINITELY better than ZERO
 
#27
trading is full of illusions :)
so you plan to invest a couple hundred bucks and buy one or two google shares? Personally I think forex doesn't suit investments, its a daytrading thing. Or even better -- algotrading kind of a thing.
 
#28
I don't know... myself I feel awkward when I borrow money, and I prefer not to at all costs. But I never considered leverage to give the same feeling or be the same thing
And yeah, one share of google is DEFINITELY better than ZERO
Sure enough leverage is not equal to mortgage. You can't get a load to buy the house and aviod interest being charged.
In FOREX this is possible. Some brokers (actually most of them) will have some interest chaged for all the leveraged positions that you hold overnight. So when the leverage is significant enough, which I think is exactly the case with AAFX, this interest is going to be rather unpleasant and result in increased trading costs.
 
#29
if you trade intraday, interest is not charged. At least I think this is how it works in trading. If you hold your positions overnight - then only the leverage interest can be charged. But you are right, if there is a significant leverage, like it happens with AAFX, where the ration reaches 1:2000, you won't be able to profit much from your open positions as interest might be too big.
That will be true in case they charge some interest though.
 

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