Free Demo Account

Open a Free Forex Trading Account with Capital Grow Solutions Today!

The Capital Grow Solutions forex demo account is the ideal practice environment for clients to perfect trading strategies, check real trading conditions and for EA users and developers to test the performance and efficiency of automated trading tools.

Start testing or practising forex trading with a $100,000 balance using real market conditions on your new Capital Grow Solutions demo account.

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Demo Advantages:

  • Get $100,000 and practice real trading
  • Real time indicators and Forex charts
  • No Dealing Desk - No Re-quotes
  • Forex, CFD, Commodities, Oil & Gold
  • Tight spreads & flexible leverage
  • Hedging & Scalping friendly
  • Expert Advisor compatible
  • Cash Rebates - up to 10/lot
  • 40% welcome bonus up to $10,000
  • iPad, Galaxy & Nexsus welcome gift

Leverage & Margin

Capital Grow offers a flexible leverage philosophy where clients can choose to trade using 1:1 through to 1:500 leverage. The use of leverage should be carefully considered as it can be both beneficial and also risky for clients. The correct use of leverage can help clients maximise the profitability of successful trading positions but if misused, higher leverage can result in stop-outs on unsuccessful positions or if a trade goes against you.

As an STP forex broker, we highly recommend that the leverage choice should be set to a maximum of 1:200, this level still allows significant increase of account margin but also protects you against losing positions. Generally when trading forex with a dealing desk, the broker encourages the use of higher leverage as they know that statistically when trading with higher leverage, most positions end up being stopped out due to lack of account equity to ride a negative position.

Leverage & Margin

In the forex markets, leverage can be used to reduce the collateral needed to enter the market that is referred to as margin in the MT4 trading platform. Capital Grow offers flexible leverage to allow clients to choose the level of risk. Should you choose leverage of 1:500, this means that with a $1,000 balance you can purchase $400,000 of a chosen currency. As the market moves for or against your order, the account equity either grows or reduces at the same rate according to the leverage level. Traders must remember that in forex, leverage is a double-edged sword. While it can multiply your profits, it can equally increase your potential losses. Capital Grow highly recommends that all traders use a lower level of leverage, or at least to understand the full risk of misusing leverage.

Leverage Ratio & Minimum Margin Requirements

Leverage is always used as a ratio and is always reliant on the margin requirements set. At Capital Grow, margin is calculated as follows:Position Size/Leverage * Currency Pair Current Exchange Rate. As a trader, it’s important to understand both risks and benefits of trading forex using leverage. By using leverage of 1:100, the client can enter the market with 100 dollars for every dollar in the account. With a balance of $1,000 in the account, you can trade up to $100,000. Your trade has the earning potential of a $100,000 order, but, you also face the risk of losing the equivalent of a $100,000 trade if the position goes against you. Leverage is the most common cause of significant trading losses.

Margin Calls & Stop Outs

When trading using leverage, you are loaning funds from your broker to be able to trade at higher levels. The funds deposited to your account are used as collateral on which the loan is based. This is why margin calls and stop outs are implemented, to avoid the risk of your account going into a negative balance. Margin call is the first warning to notify traders that the margin of the account is reaching the minimum level. A stop out occurs when the account has too little equity to continue the trade and is used as a tool to protect accounts from going into negative equity.

What Leverage does Capital Grow Offer?

Deposit Amount

Leverage

100 - 10,000

Up to 1:500

10,001 - 50,000 Up to 1:300

50,001 - 100,000

Up to 1:100

Capital Grow recommends that all traders consider the choice of leverage carefully and suggest a maximum of 1:200. Trading with higher leverage is a common error and can increase the risk of trading forex.

 

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The capitalgrow.info brand is a Financial Services Company, authorised and regulated by the FSC under the Securities and Investment Business Act, 2010 License#: SIBA/L/11/0964. Forex commodities and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. The information provided can under no circumstances be considered as a recommendation to engage in any trade.