BDSwiss Leverage – How much is it?
Many traders have signed up to BDSwiss, which is a respected and regulated forex broker as you can read on our review. Besides forex, they also a large range of CFD assets including cryptocurrencies and stocks.
However, if you’re new to trading or new to the broker, it’s good to know what the BDSwiss leverage is.
That’s because leverage is a vital part of trading which can have a big effect on your profits.
How Much is the BDSwiss Leverage?
The leverage offered all depends on your country of residence.
For instance, if you live in the United Kingdom or EEA (European Economic Area), the max leverage available is 1:30 at BDSwiss.
This is because of a ruling put in place by ESMA (European Securities and Markets Authority) which put a cap on it.
So the max allowed that any European forex broker can offer is 1:30. The regulation was put in place to keep trading less risky for traders in general.
However, if you live outside of Europe and the UK, the max BDSwiss leverage allowed is 1:500.
1:500 means that if you deposit $1,000 to your account, then you’ll be able to trade with a value of $500,000. Of course a higher leverage also means a higher risk too.
No matter which country you reside in though, you need to remember that the leverage amounts will change according to the traded asset.
For example, forex pairs will have a different leverage limit than share or crypto assets.
Let’s take a closer look by asset type now
BDSwiss Leverage by Asset
Here is a complete list of the BDSwiss leverage amounts for the forex & CFD assets.
We have put together 2 lists, 1 for EEA and UK residents, and 1 for international residents (e.g. Australia & South Africa).
Please check the list that is valid for you:
EU & UK Traders
- Forex – up to 1:30
- Shares – up to 1:5
- Cryptocurrencies – up to 1:2
- Indices – up to 1:20
- Commodities – up to 1:20
- Forex – up to 1:500
- Shares – up to 1:5
- Cryptocurrencies – up to 1:5
- Indices – up to 1:100
- Commodities – up to 1:200
What is Leverage?
Leverage allows you to trade with larger amounts than you may actually own, which gives you the opportunity to multiply your profits. It helps to increase your selling & buying capacity as it acts as a multiplier.
For instance, the process is quite similar to the process of buying a property.
When purchasing a house, you’ll need to have enough money to place a deposit on it, but you may need to borrow the rest of the funds.
The amount which you’ve borrowed is known as ‘leverage‘. This process can also be applied to forex trading.
People can make more profits by using a higher leverage, because if the market moves in favour for your positions, then your profits will be multiplied by your selected ratio.
However, it’s important that you remember that if your positions do not work out, your losses will also be higher.
That’s the gamble of using higher leverage, which is why it’s vital to understand how it works.
BDSwiss Leverage Risk Management
BDSwiss aims to prevent clients from using too much leverage than they can manage. To do this they ask all of their users to answer an appropriateness test as part of the account creation set up.
From the answers they can see if someone has enough experience with leverage to use a higher ratio. If they don’t they’ll be limited to a lower ratio.
That’s why we’d recommend the free BDSwiss educational tools which have lessons on risk management and margins. They cover in detail how leverage works and how to create risk management strategies.
It’s also worth pointing out that the broker has a negative balance protection policy. This means that you cannot lose more than the amount you’ve invested- your account cannot fall below zero into minus figures.
BDSwiss Leverage Education
If you want to learn more about trading and how to develop risk management strategies, then BDSwiss has a great educational offering.
They have detailed video tutorials that cover a wide range of Forex and CFD topics.
There are 3 education levels available: beginner, intermediate and advanced.
You can work your way through the levels and take the free quiz at the end to see how you’re doing.
Of course the beginner levels cover the more basic aspects of trading, whereas the advanced levels cover leverage, strategies and margins.
Besides the video tutorials there are regular live webinars with professional speakers and live market news updates.
Author of this article and founder of Tradingonlineguide.com
My aim is to help you increase your trading knowledge with helpful content. I come from an economic background and have a strong passion for forex trading. With more than 6 years in the online trading world, I want to share my financial knowledge so that anyone can develop their investment skills.
In my spare time I enjoy cooking and travelling.
Here you can learn more about our review methodology.