How risky is 500:1 leverage at Vantage?

I’m considering copy-trading forex in the UK. I was told to use a broker called “Vantage”. They recommended to use 500:1 leverage. However, I’m unsure if I would be protected if I use this high leverage, e.g., negative balance protection is available. Any tips here?

First of all, if you register under an FCA-regulated (UK regulator) company (or regulated by any EU financial authority) then

  • negative balance protection is automatically guaranteed for retail clients, but professional clients do not have this protection
  • BUT leverage is maximized up to 30:1 for retail clients

When you register to off-shore entities (e.g. Vantage would likely onboard you under its Vanuatu-based entity), then you can use higher leverage but the protection is not the same. Usually, negative balance protection is not available (or available only in certain cases). Also, FCA- regulated entities provide GBP 85k investor protection, while off-shore entities don’t provide this protection.
I would recommend choosing a broker that is regulated by the FCA (or any EU regulator) if negative balance protection is important for you. A couple of names that provide social trading and would provide negative balance protection if you onboard under an FCA or EU-regulated entity:


Thx, Chris.

How do I know if Vantage onboards me to its Vanuatu based entity? Do they give info about that during registration? Can I choose this, or it’s based on my nationality?

@Chris Can you help me with my question?

Heey @muellah, let me jump here! The brokers usually register to entities based on the users’ tax residence.

In the case of Vantage, this is how it works:

So if you’re a non-AU and non-UK client, then you’ll be onboarded under the Vanuatu-based entity.

Let me know if you have any questions.


Okey, it’s clear. thx @nadam

1 Like