Introduction – The Dangers of Excessive Leverage
Leverage is a tool that can magnify both profits and losses in trading[2]. While it offers the potential for substantial gains, it also carries significant risk, especially for inexperienced traders[4]. Understanding risk management is crucial when using leverage; without it, traders can quickly deplete their accounts[2]. Prop firms like Sure Leverage Funding offer high leverage, attracting novice traders with the promise of quick returns, but this can lead to overbetting and substantial losses[4].
The Funding Model – Who Really Wins Here?
Sure Leverage Funding, legally known as Prop Trade Tech Pty Ltd, presents a proprietary trading experience designed to minimize risk while maximizing benefits for traders[1]. They allow traders to retain up to 100% of profits and offer a free reset during the funded stage, providing a fresh start without risking additional capital[1]. However, the firm’s funding model, like many prop firms, involves challenges that traders must pass to access funded accounts[1]. These challenges come with specific rules and profit targets, and traders bear the cost of these evaluations[1]. While Sure Leverage Funding offers potential benefits such as access to capital and industry-leading spreads and commissions via Eightcap, the structure may be more advantageous for the firm than the traders[1]. The firm profits from challenge fees, while only a small percentage of traders may successfully navigate the challenges and receive payouts[1].
Trader Reviews & Complaints – The Biggest Concerns
Some traders have lauded Sure Leverage Funding for its low spreads, challenge pricing, and support[7]. However, there are also notable complaints and concerns[7]. One trader reported an unexpected breach of their funded account after five months, following small trades made to comply with the firm’s inactivity rule[7]. This trader claimed their account was terminated shortly after qualifying for a growth plan and requesting a balance increase, with no response from support regarding the termination reason[7]. Such experiences raise concerns about the firm’s financial stability and reliability[7].
Why This Firm is Risky – Understanding the Hidden Dangers
Several factors contribute to the risk associated with Sure Leverage Funding:
- High Leverage: While offering substantial profit potential, high leverage can lead to rapid and significant losses, especially for those without robust risk management strategies[2].
- Challenge Requirements: Traders must meet specific profit targets and adhere to drawdown limits, adding pressure and increasing the likelihood of failure[1].
- Restricted Strategies: EA or ALGOS usage is restricted to evaluation phases, limiting the flexibility of live funded accounts[1].
- Account Termination Issues: Reports of unexpected account terminations and poor customer support raise concerns about the firm’s reliability and transparency[7].
- Banned Countries: Sure Leverage Funding does not allow traders from Cuba, Iran, North Korea, Myanmar, Russia, Somalia, Syria, Ukraine, and the United States[1].
Better Alternatives – Where Leverage Actually Works in Your Favor
While Sure Leverage Funding has potential drawbacks, there are alternative prop firms and trading strategies that may offer a more balanced approach to leverage[3].
- Vault Funder: Vault Funder provides access to Forex, Indices, Metals, and Energies, whereas Sure Leverage Funding provides access to Crypto and Forex. The maximum capital allocation is $400,000, which is lower than Sure Leverage Funding’s $800,000[3].
- Risk Management: Effective risk management is crucial for any leveraged trading strategy[2]. Implementing stop-loss orders, managing position sizes, and understanding market volatility can help protect capital[2].
- Education and Experience: Building a solid foundation of trading knowledge and gaining experience in the markets are essential before using high leverage[2]. Novice traders should start with lower leverage ratios and gradually increase as their skills and confidence grow[2].
- Systematic Trading: Developing a systematic trading approach can help avoid emotional decision-making and overtrading[4]. A well-defined system includes clear entry and exit rules, risk parameters, and position sizing strategies[4].
- Cost Control: Keeping trading costs low is essential for profitability[4]. High commissions and overnight funding charges can erode profits, especially for frequent traders[4].
