Forex margin being lowered

[cabletrader]

Quote from KrispyKreme50:

Let's assume that the spread on EUR/USD is 1 pip. 1% is 147 pips give or take a few so 1/147 = 0.0068% spread for someone with no leverage. 0.0068*400 means a 2.72% spread cost for someone with 400:1 leverage right off the bat. How is it even possible to trade with 400:1 leverage without blowing up at some point in the future?

I'm not sure how you guys are working out your numbers, you can never actually use the maximum leverage offered.

Hypothetically though, trading Eur/Usd @400:1 on a USD account, a 1 pip spread would be 4% wouldn't it?

It's all a bit of a non-issue anyway, a reckless gambler can still do a lot of damage with 10:1 let alone 100:1!