Top Hedging Forex Brokers

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Forex brokers allowing hedging are plentiful, as almost all non-US regulated brokers allow this risk management strategy. Since there are many choices for traders to consider, we have extensively researched the field for you, the results of which we set out in the list of the best Forex hedging brokers below.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Trade 1,000+ financial instruments
Experience low, competitive spreads
Multiple funding and swift withdrawal options

Hedging Brokers At A Glance

  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • FP Markets, ECN trading with leverage up to 1:500..
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.
  • BlackBull Markets, Best ECN trading environment, with scalping and hedging.
  • Eightcap, Competitive pricing + excellent daily videos.

Best Hedging Forex Brokers Comparison

Brokers Features Comparison

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Overall Rating
9.8 9.7 9.5 9.3 9.1
Full Review
FXTM Review FP Markets Review AvaTrade Review BlackBull Markets Review Eightcap Review
Regulated
Yes
CySEC, FCA, FSC Mauritius, CMA
Yes
CySEC, ASIC
Yes
MiFID, Central Bank of Ireland, ASIC, BVI, KNF, FFAJ, FSCA
Yes
FSA, FMA
Yes
CySEC, FCA, ASIC, SCB
Lowest Avr Eur Usd Spread
N/A N/A N/A N/A N/A
Minimum Commision For Forex
$0-$2 $6.00 per Round Lot Commission-free $6.00 per round lot N/A
Commision For CFDs DMA
0.4cent-2usd 0.10% with $10 minimum Commission-free Not applicable N/A
Minimum Deposit
$50 $100 $100 $0 $100
Demo Account
Managed Account
Islamic Account
Inactivity Fee
N/A N/A N/A N/A N/A
Withdrawal Fee
"$3 for credit card $20-$40 for bank transfer $0 for Neteller" Third-Party Third-party Third-Party N/A
Funding Methods
5 +
Credit Cards, Wire Transfer, Neteller, Skrill, Webmoney, Other
5 +
Credit Cards, Wire Transfer, Debit Cards, Neteller, Skrill, Other
5 +
Credit Cards, MoneyBookers, Wire Transfer, Neteller, Skrill, Other
5 +
Credit Cards, Wire Transfer, Debit Cards, Neteller, Skrill, Other
5 +
Credit Cards, Wire Transfer, Debit Cards, Neteller, Skrill, Other
Visit Website Visit Website Visit Website Visit Website Visit Website

Asset List and Leverage Overview

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Currency Pairs
N/A N/A N/A N/A N/A
Cryptocurrency Pairs
N/A N/A N/A N/A N/A
Commodities and Metals
N/A N/A N/A N/A N/A
Index CFDs
N/A N/A N/A N/A N/A
Equity CFDs
N/A N/A N/A N/A N/A
Bonds
N/A N/A N/A N/A N/A
ETFs
Options
N/A N/A N/A N/A N/A
Maximum Retail Leverage
N/A N/A N/A N/A N/A
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Overview of Trading Platforms

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MT4
MT5
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading
N/A N/A N/A N/A N/A
MT4/MT5 Add-Ons
N/A N/A N/A N/A N/A
Guaranteed Stop Loss
Negative Balance Protection
N/A N/A N/A N/A N/A
Unique Feature One
N/A N/A N/A N/A N/A
Unique Feature Two
N/A N/A N/A N/A N/A
Visit Website Visit Website Visit Website Visit Website Visit Website

FXTM

5.0/5 in this category
In Summary
Best all-around broker with high floating leverage and fast execution

FXTM, or ForexTime, is one of the world's greatest all-around brokers. This trustworthy broker, who has a decade of expertise, is currently open to traders in Cyprus, the United Kingdom, and Mauritius. FXTM allows you to trade a variety of currencies, as well as gold, silver, and other precious metals. Traders who purchase stocks through ForexTime assume full legal ownership of the shares. Whether you're looking to invest in commodities, CDFs, stocks, metals, indices, or oil, FXTM is the right broker for you.

Pros
  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • Proprietary copy trading platform, low minimum deposit, and high leverage

Cons
  • Limited choice of cryptocurrencies and commodities

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500.

FP Markets, an Australian forex broker, was launched in 2005, more than 15 years ago. Over 60 currencies, 10 crypto choices, over 20 commodities, several CFDs, and a variety of other assets such as precious metals and oil are among the trading possibilities offered by the financial services provider. FP Markets is available in more than 80 countries around the world and is regulated and authorized by CySEC and ASIC. This multi-award-winning forex broker offers Euro, US Dollar, British Pound, and Australian Dollar as currency alternatives. They also provide training resources for new traders in order to improve their chances of making a profit from their new business.

Pros
  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Cons
  • Availability of Iress geographically restricted

AvaTrade

5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

If you are new to the trading game and looking for a forex trading app to assist you, AvaTrade may just be the answer. This highly regulated broker goes the extra mile to assist new traders and traders looking for hedging trading, in making a success out of their new journey. AvaTrade provides users with extensive training resources. These trading training resources consist of over 200 informative videos and 40 different courses that are available to all users via SharpTrader. These consist of valuable lessons that will guide new traders in making the right decisions. AvaTrade is licensed and regulated in Japan, Israel, the United Arab Emirates, South Africa, Australia, the British Virgin Islands, and Ireland where their headquarters are based.

Pros
  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons
  • Trading costs competitive but nothing special

BlackBull Markets

4.5/5 in this category
In Summary
Best ECN trading environment, with scalping and hedging

BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.

BlackBull Markets Pros & Cons

Pros
  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons
  •  Limited deposit options

Eightcap

4.5/5 in this category
In Summary
Competitive pricing + excellent daily videos

Eightcap Pros & Cons

Pros
  • Low minimum deposit and high leverage of up to 1:500

  • Competitive cost structure

  • Excellent technology infrastructure and seasoned management team

  • Daily research and quality educational content

Cons
  • Limited leverage in some areas

Hedging can be a useful part of a trading strategy if it is executed properly. It can also be a risk management technique in the hands of skilled traders. When the online brokerage industry launched, some brokers restricted hedging, and traders with US regulated brokers cannot hedge. The initial launch version of the MT5 trading platform, which is widely considered to be a failed successor to MT4, only allowed netting and had hedging features disabled. MetaQuotes, which developed the MT4 and MT5 trading platforms, listened to the negative feedback and realized its error, correcting it with an update that now supports both modes for the benefit of non-US traders. Today, most brokers allow hedging, but most retail traders do not fully understand hedging. Many throw the term hedge fund around lightly. Working for a hedge fund used to be the number one career ambition among US teenagers. Following the 2008 global financial crisis, and the largely counter-productive regulatory changes which quickly followed, many hedge funds converted into family offices, while most of the remainder delivered subpar investment returns. While hedge funds and hedging received plenty of negative coverage, traders should understand what “hedging” means and learn the benefits of trading with one of the many hedging Forex brokers.

Dumb vs Smart Hedging

The most definitive difference within hedging is between a “dumb hedge”, which professional traders do not use, and a “smart hedge”. A dumb hedge means taking a buy and a sell position of equal size simultaneously in the same asset. This locks in any floating profit or loss, but commits to a day-to-day capital bleed, as swap rates on leveraged overnight positions will have to be paid on both positions. A dumb hedge serves no beneficial purpose, and traders benefit more by closing a trade rather than taking an opposing one of equal size in the same asset for the same net result. A “smart hedge”, where the trader takes a second position in a correlated asset, can however be an intelligent risk management strategy but will also increase overall risk. Therefore, it is best suited as a strategy for skilled traders who understand financial markets. An example of a smart hedge in Forex might be buying EUR/USD and selling GBP/USD due to the strong correlation between the two currency pairs. Stock traders might hedge by buying individual equities while selling the index of which they are a component. Options contracts are also heavily used in hedging portfolios.

Restrictions on Hedging

Traders should avoid brokers that place restrictions on hedging regardless of whether they want to use hedging or not. The best Forex brokers do not impose needless restrictions upon their clients. The hedging Forex brokers we reviewed above in detail ensure their traders have the tools to build an edge in the market. Before deciding on hedging as a strategy, traders should learn how to create smart hedges and forget about dumb hedges.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.