EXANTE is one of the top global brokers supporting advanced trading and catering not only to individual traders but also to asset managers and financial institutions. If you are interested in starting your trading journey with this broker, you may be wondering about the capabilities for margin trading it offers.
Margin trading provides customers with additional funds for investments, which can potentially lead to higher returns from successful transactions and offer greater buying power to diversify their portfolios.
Read this EXANTE broker review focused on margin trading to find detailed information about its support and requirements for this service.
EXANTE Margin Trading Account
Margin trading, which enables customers to buy assets with leverage or money borrowed from a broker, is provided by EXANTE by default. This means that once you set up your live EXANTE account, you will have access to margin trading without the need for additional customization.
Assets Available for Margin Trading
With EXANTE, you can benefit from leverage for selected financial instruments. Forex trading pairs are among the most popular products traded on margin with EXANTE. In addition to other instruments, the broker allows its customers to use this service for trading ETFs, CFDs, and stocks.
Managing Margin Trading on the EXANTE Platform
As mentioned earlier, margin trading is enabled by the broker for live accounts by default. To check the details on the leverage policies for a particular financial product, you can navigate to the “Instrument Info” module available in the trading application.
For changing the leverage rates for traded instruments, EXANTE asks its customers to directly contact their Account Manager.
How Much Does Margin Trading with EXANTE Cost?
EXANTE offers an attractive margin trading option for its customers. The broker does not charge any fees for margin trading as long as margin utilization remains below 100%. Margin utilization indicates the amount of margin collateral or the money in your account that backs up the borrowed funds.
Therefore, when margin utilization is below 100%, EXANTE does not impose any fees. However, if margin utilization exceeds 100%, EXANTE will notify you of surpassing your available margin. While many brokers automatically sell your positions to reduce borrowing and protect themselves, EXANTE first warns its customers, requesting additional collateral to maintain the current margin utilization. Only if this request is not met promptly, will the broker reduce your positions.
This action incurs a fee of 90 EUR/GBP.
Avoiding Margin Calls on the EXANTE Platform
To help its customers avoid margin calls, EXANTE has added the “Estimated Margin” feature, which allows you to determine whether you can afford to place orders with leverage. The broker also recommends prioritizing instruments with lower volatility for margin trading and maintaining the borrowed amount at the lower end of the allowed limit.
Also, ensure that email notifications used for your communication with the broker are enabled. This will make it possible for you to promptly check any warnings about upcoming margin calls and adjust your collateral accordingly.
Trading Without Leverage
While leverage offers great opportunities for trading optimization, it also comes with certain risks. Leverage can magnify both profits and losses, and there is a possibility of forced asset liquidation at a loss if a margin call is triggered by adverse market movements.
Additionally, leveraged positions are often subject to interest or financing charges.
If you prefer trading without leverage or are not confident about using this service but may change your mind in the future, as an EXANTE customer, you are not obligated to use margin trading. The broker respects the preferences of its customers and allows them to disable leverage on their accounts.
To disable margin trading, navigate to “Account Settings” under the general “Settings” in the Client’s Area. There, you can find the Margin Trading switch and toggle it off.
Note that, according to EXANTE’s current policy, short selling stocks, as well as futures and options trading, is only possible with margin trading enabled. For flexibility, EXANTE allows you to create a secondary sub-account with margin trading enabled, where you can trade options and futures and short sell stocks, while performing other trades without utilizing leverage.
Pay attention to the descriptions used by EXANTE for margin trading. When this feature is off, trading is executed with a 1:1 leverage rate.
Bottom Line: Trading with Leverage on the EXANTE Platform
If you are looking for a broker that allows you to trade with leverage, EXANTE is an excellent choice. It provides a wide range of instruments for margin trading and does not charge any fees for margin utilization below 100%. Furthermore, the broker does not automatically liquidate positions if margin utilization surpasses 100%. Instead, EXANTE contacts traders, requesting additional collateral funds before taking any action.
Additionally, you can trade without leverage on the EXANTE platform. While margin trading is provided by default, it can be easily switched off.
