What leverage should be good for a newbie to use?

Is it not? I have been demo trading since a few weeks on fxview and they offer different leverage for different assets. Like it’s more for major currency pairs. I am in the process of finalising between xtb and pepperstone too, leverage is one of the deciding factors.

 

If a new trader has a tested out risk management plan then there is no harm in using high leverage.

 

Pepperstone is a good broker, been with them for a while now.

 

Beginners should start with low leverage. Risk is high with leverage trading and so under-experienced traders shouldn't begin with a high level.

 

I agree, I was using pepperstone before fxview, only switched because of lower spreads on my new broker. And the taxes!

 

I'm pretty new to forex and would like to know what leverage is suitable for beginners and also is it risky to trade using high leverages (1:500)?

 

Leverage should be tied to volatility/standard deviation of your portfolio. Maintain a cap and you should be safe unless its some crazy negative skew assets - which means it shouldnt be levered at all.

 

If the margin is already low and the leverage is high then it is just like a gamble...being a newbie

 

I believe new traders MUST trade in cash only, no leverage period until you've doubled your cash account.

Leverage blows traders out faster. Ive heard tales of woe from hundreds of traders since 1999... leverage and margin is quick death, until you're consistent.

 

The leverage choice is up to the traders, and as per my experience, it is not much of a problem trading with lower leverage for beginners.