BluFX Leverage

The BluFX Project is for Traders who are the best at profiting in an environment of low 1:3 leverage, low drawdowns and consistent account growth.

BluFX offer 1: 3 Leverage.

Can leverage be changed?

Our trading parameters are all set in line with our analysis of vast amounts of trader data. We have set the leverage at the level that allows traders who have developed strategies that do not rely on luck and are suitable for low risk and consistent returns when applied to large amounts of trading capital. Therefore our leverage level is fixed to achieve our objectives for the BluFX Project.

Why is leverage 1-10 on the platform but 1-3 elsewhere?

We have had to implement some changes to the way leverage and margin requirements are calculated due to ESMA regulations that came into effect on 08/2018. Hence lower leverage/higher margin requirements. The effective leverage remains 1-3.

Can not make money with the leverage?

Our trading account parameters are designed to promote good swing trading and to discourage ‘lucky’ and risky over-leveraged trading, which is the cause for the high failure rate of retail traders.
We have a higher than broker average percentage of traders with positive balances due to the parameters.

Why not use my own money 5K with 30-1 leverage?

In our experience traders follow one of around 4 typical trajectories in their career;
1. Start trading, lose a lot and never recover to profitability
2. Start trading, lose a lot and then gradually recover to become profitable
3. Start trading, lose a small amount then become and stay profitable
4. Make money from start and never look back
Money available is normally a factor in which trajectory. So many potentially good traders need longer than others to ‘click’ but if they run out of money then its over.
We realised this when backing Futures traders for years.
In your case, if you expect to make money constantly from the start then you are better off at a broker with no fees.
If however you run into trouble and have a drawdown with your own money then you come under pressure and may have to quit before the turnaround happens.
Therefore, in return for the fee, instead of you using your own 5K with 1-30 leverage, and potentially running out of money due to a bad run, you can take more time to turn the corner with us. And once you start profiting we will double your account size each time you make 10%. On your own account to double your size, you would need to make 100%.

About our low leverage

Forex Trading Without Leverage
The main downside of trading Forex without leverage is that it is simply not accessible for most traders. Forex trading without leverage means that changes in the price of an asset directly influence the trader's bottom line. The average monthly return a trader can generate is 10%. But in reality, the return is around 3 to 5% a month.
 
However, this figure already includes marginal trading. With no leverage Forex trading you would probably only make between 0.3 to 0.5% a month. It may be enough for some Forex traders – but perhaps not for the majority. The need for substantial trading capital is the biggest drawback of trading without leverage. On the other hand, currency trading without leverage gives you less risk exposure.
 
However, this doesn't mean that there are no risks involved in trading without leverage. Let's proceed with an example of 'No-leverage trading'. Let's say you deposit 10,000 USD and make a monthly return of 5%. You would only get 500 USD each month, and that's before any taxation. You could probably make the same money with a 9-to-5 job, without risking your own capital in the process.
 
Institutional trading
What is institutional trading? As we've already mentioned, a lot of institutions choose Forex trading without leverage. Yet these organisations are still able to achieve large profits. How is this possible? Large banks have access to billions in capital. They can afford to trade large amounts on attractive entry signals. Institutions also often trade long term, so unlike the average trader, institutions can have their position open for months or even years.