Why high leverage will make you fail 

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Funded Trading Plus designed their leverage with you in mind 

Funded Trading Plus offers 10:1 leverage. This raises the question as to why. 

We spoke to James Frangleton, the Director Of Operations at Funded Trading Plus to ask why 1/10 leverage was chosen. Here’s what he had to say when Forex Prop Reviews spoke to him: 

“We know people think that high leverage in funded trading is better for them, but when you look at the evidence the opposite is true. Our trading records and when we look at the data published by the big funded trading firm, all point to the fact that using high leverage is more likely to result in a lost funded trading account.

The European Securities and Markets Authority (ESMA) regulates all brokers across Europe. In 2018, they carried out a massive, comprehensive data-driven review into leverage and trader success by analysing millions of trades across dozens of brokers. 

To quote a line from their summary: 

As studies by NCAs have shown – consistent with academic research and as also acknowledged by some CFD providers – high leverage causes poor outcomes for investors. 

Read that again; High leverage causes poor outcomes for investors. 

Basically, the more leverage you have, the more likely you are to fail. This is clear statistical evidence from millions of trades. A clear cause and effect between higher leverage and client losses. 

This is the basis as to why we offered 10:1 leverage. Yes, it may sound low, but it isn’t. It’s only limiting for small accounts. Say, a $1000 account. 

When you have anything from $10,000 then you have the buying power (10 x $10,000 = $100,000 of buying power) so leverage isn’t a problem. We have people making thousands of dollars per day. We could offer 50:1, 100:1 or even more, but this wouldn’t be in the trader’s best interests. Every aspect of our program has been designed for a reason and this is why we have a high pass rate. We designed our programs from a trader’s point of view, which is why we spent 6 months designing our program. We based programs on experience, research and feedback from what traders’ wanted and what benefits traders.” 

You can learn more about Funded Trading Plus, their leverage and how it works here.

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