Blog

How forex leverage and margin work, with a worked margin-call example and regional leverage limits.

What a forex broker is, how it makes money, and how to verify it's regulated before you deposit.

To choose a forex broker, verify regulation first (FCA, ASIC, or CySEC), then compare total trading costs including spread, commission, and overnight swap fees. Check the platform on a demo account before depositing. Prioritise brokers with segregated client funds, negative balance protection, and a clean regulatory record.

Leverage in forex trading lets you control a large position with a small deposit. A 30:1 leverage ratio means $1,000 of your money controls a $30,000 trade. Profits and losses are both calculated on the full position, not just your deposit. Regulated brokers in the UK, EU, and Australia cap retail leverage at 30:1.

The minimum deposit in forex trading is the smallest amount a broker requires to open a live trading account. It ranges from $0 to $500 depending on the broker and account type. Most regulated brokers set minimums between $50 and $200. The minimum deposit is not the same as the recommended starting capital.