Why You Keep Getting Liquidated with CFD Brokers

 Hi, this is Chartinfo. Today, we’re going to look into why so many of you keep getting liquidated while using offshore brokers.

The most common mistake traders make with offshore brokers is leverage. Most of these brokers have a default leverage set at 1:1000. Many traders fail to lower this setting and end up getting liquidated.

If your leverage is 1:10, you get liquidated with a 10% price fluctuation. At 1:100, it’s 1%, and at 1:1000, just a 0.1% move will wipe you out.

While the ability to trade with a small equity is an advantage of offshore brokers, you must never use high leverage. To keep your account alive in the long run, using leverage below 1:20 is essential.

When you use high leverage, even the commissions become a heavy burden.

For example, if you trade 1 lot of Gold (100 oz) with a $1,000 account balance, about $20 to $50 will go toward commissions at most brokers. That means 2% to 5% of your equity is gone just from fees alone.

You shouldn't just look at a broker's reliability; you must also check if they charge reasonable commissions.

Currently, Chart Info is partnered with several major brokers, but there is one specifically I’d like to recommend: Axi. They are a well-known broker that sponsors Manchester City in the Premier League.

Here is the spread and commission table.

ticker	spread	Commission per lot
EURUSD	0	$4.5
USDJPY	1pip	$4.5
XAUUSD (GOLD)	0.09	$4.5
USTECH (NASDAQ)	0.8	N/A
US500 (S&P500)	0.3	N/A
HK50	4	N/A
BTCUSD	12	N/A
ETHUSD	1.25	N/A

As you can see, it is likely the lowest you’ve seen among offshore brokers. Since they are large enough to sponsor Man City and have a solid client base in the UK and Australia, you don't need to worry about their credibility.

If you sign up through the Chart Info link, you can receive a cashback of about 25% of the spread, so please feel free to join.

[Link]

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Another crucial factor is slippage.

Many brokers profit from slippage, which is a very predatory practice. For example, if you try to buy Gold at $4,200, but due to delayed execution or widening spreads, your order fills at $4,200.2. Those losses add up significantly over time. However, Axi maintains a consistent spread. I have personally monitored the spreads through screenshots, and they remained stable.

I checked about 10 times, and the spreads never widened.

Lastly, some brokers play games with the exchange rates during deposits and withdrawals. If you use crypto, it might not matter, but if you use local currency transfers, make sure to check the rates. Axi does not take a cut from exchange rate fees.

When using offshore brokers, please! do not use high leverage, and always verify the commissions and spreads. Thank you.