The former. Obviously, using a profitable strategy, risk management and high leverage the profit is higher. Or the allocated balance for the same profit can be lower, which means using less balance to get more profits. Anyhow, I think the thread's question is clear: for the addressed conflict, Brokers are responsible, not the traders. Thanks, British Petroleum John Boston USA
Brokers are responsible ... that is why you will only find an irresponsible broker who will allow a U.S. citizen to open an overseas account. Good luck with pulling funds out after they get their hands on it. Having said that traders are responsible too. Forex can only be traded with brokers who are CFTC regulated - here or abroad.
Exactly this. You put your funds in an overseas bucket shop and you have absolutely zero, zilch, no recourse when they simply decide to keep your money in the vanishingly rare case you're profitable. Who are you going to complain to? There are literally hundreds of stories of this happening, there are few ways you could better guarantee losing your money than going to an overseas broker who accepts Americans.
1:30 leverage is rather lousy. I prefer higher leverage. the higher the better. ADVANTAGES : - you can earn tons of $$$$ with small amount of capital - you only need to put a small amount in the account. If the brokerage firm collapse / disappear or whatever, you only lose a small amount which is in the brokerage firm. It happened before and trying to recover your $$$ could be a nightmare.
Talking out of both sides of your mouth " ..... earn tons of $$$$ with small amount of capital" "..... brokerage firm collapse / disappear or whatever, you only lose a small amount" Also you list advantages. Amateurs look at advantages first, disadvantages last. "I am more concerned with the return of my money than the return on my money." - Will Rogers