LeverageFX Review

WHO IS LEVERAGEFX?

According to research in South Africa, LeverageFX  was founded in 2006 as a way to bring forex trading prospects and training in forex trading online together so as to reach a broad audience.

LeverageFX provides a range of software package options for users on its site, ranging from software designed for beginners to more advanced software for experienced traders and brokers.

LeverageFX analyses their own software options and allows users to compare packages to find which software would best suit their needs.

The software is so easy to use, that beginners can select software that offers easy to track trends that are green when the market is rising and red when the market is falling.  This shall indicate when to buy or sell.

More experienced traders  will gain from the more customizable software packages since they can select which options to display, as well as have access to charts, and market analyses to make their trading choices.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like LeverageFX is to establish which regulating authorities are watchdogs over its actions.

Since LeverageFX is not regulated, this entails a more risk area for their traders. On the other hand, the company is broadened to sell trading software and offers trading platforms.

This would then suggest that the company due to its duration in the industry could be at a medium risk level to traders.

Overall there is not enough information regarding LeverageFX to ascertain whether they are a legitimate broker or if they are a scam. Traders would have to use extreme caution before deciding to use LeverageFX.

PROS AND CONS

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

LeverageFX does not specify a maximum leverage.

ACCOUNTS

A forex account at LeverageFX is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

LeverageFX accounts are linked to the pricing for its software packages, which can range from $150 per month to lease use of the software to $2000 to buy the software.

The price comprises the forex software of choice, as well as an account, forex charts, and access to forex trading systems.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management.

Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

LeverageFX offers the following of the above: Forex, Commodities, Indices and Precious metals.

FEES

Cost depends on different factors, like spread and margins, and LeverageFX clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

LeverageFX does not specify what spreads or margins they offer.

DEPOSIT AND WITHDRAWAL

Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of LeverageFX the following methods and minimum deposits are required, namely the pricing for its software packages, which can range from $150 per month to lease use of the software to $2000 to buy the software.

The price comprises of the forex software of choice, as well as an account, forex charts, and access to forex trading systems.

TRADING PLATFORMS

The forex trading platform provided by LeverageFX to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

LeverageFX provides their own software packages for their traders, but do not specify which types.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with LeverageFX for the first time, you will be required to go through a basic “know your customer” process.

This will allow LeverageFX to ascertain that your submitted details and ensure the safety of your funds and account details.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of LeverageFX customers can reach the support team on their website. They do not show a telephone number, email address or any contact details for this company.

EDUCATION

Before starting to trade, potential clients of LeverageFX should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

LeverageFX provides software packages for beginners and experienced traders. There is only one tutorial video on YouTube but no other educational tools.

RESEARCH

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With LeverageFX they provide access to charts and graphs on their own software packages for their clients.

AWARDS

Although LeverageFX is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION

LeverageFX can be described as an online broker company that specializes in trading of forex online. Not much else could be found about this company except that it does offer its traders their own specific software packages that they can lease or buy upfront.

They do state that they offer platforms for traders to trade online. According to other reviews, they do have an interactive relationship with their clients online, but no email address, telephone number or other forms of contact with them could be found.

Plus the fact that they are not regulated under any regularity board makes them a high risk for traders.

DISCLAIMER

LeverageFX warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with LeverageFX, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

LeverageFX warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

LeverageFX cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with LeverageFX?

You can trade several different instruments with LeverageFX, which include the following:

• Forex
• Commodities
• Indices
• Precious metals

Which platforms are supported by LeverageFX?

LeverageFX provides the following popular trading platforms:

• Their own software packages

Does LeverageFX offer leverage?

No, LeverageFX does not specify any maximum leverage.

What spreads can I expect with LeverageFX?

LeverageFX does not specify how much or if they do have spreads for traders.

If details the on the website is not comprehensive, more information can be obtained from the customer support service.

Does LeverageFX charge commission?

LeverageFX does not specify about commission charges. More information on commissions can be obtained from the customer support service.

Is LeverageFX regulated?

No, LeverageFX is not regulated by any regularity body.

Is LeverageFX a recommended forex trading broker for experts and beginners?

LeverageFX offers a fair trading environment for all types of traders from beginners to experienced traders.

What is the overall rating out of 10 for LeverageFX?

2/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does LeverageFX offer a demo account?

No

How long is the demo account valid?

There is no demo account specified for LeverageFX

Which live trading accounts does LeverageFX offer?

• Their own software packages

What are the available deposit currencies for a live trading account?

USD and other currencies.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for LeverageFX?

$150 for their own software package

How do you make a deposit and withdrawal with LeverageFX?

LeverageFX offers the following deposit and withdrawal methods:

• Credit cards
• PayPal
• Wire Transfer
• Withdrawals can be done via:
• Credit Cards
• PayPal
• Wire Transfer

Does LeverageFX charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.