Leverage is the best trading tool and the most misunderstood. Many market participants, including professional ones and regulators, mistakenly associate it with high risk. We have researched hundreds of brokers to find the best high leverage Forex brokers, which offer clients a competitive edge.
Top High Leverage Forex Brokers
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- Eightcap, Competitive pricing + excellent daily videos.
- FP Markets, ECN trading with leverage up to 1:500.
Best High Leverage Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | CMA, CySEC, FCA, FSC Mauritius, FSCA | FMA, FSA | ASIC, CySEC, FCA, SCB | ASIC, CySEC, FSCA |
Year Established | 2006 | 2011 | 2014 | 2009 | 2005 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 0.1 pips | 1.3 pips | 1.0 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 0.2 pips | 2.0 pips | 1.2 pips | 1.4 pips |
Average Trading Cost Gold | $0.29 | $0.18 | $0.90 | $0.12 | $0.21 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | |||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is one of the most regulated brokers and offers low leverage in several jurisdictions. The ASIC-regulated entity offers traders up to 1:400, still below the 1:500 most Australian brokers provide, but a very competitive one for traders to consider. AvaTrade presents new traders with a market-leading educational, SharpTrader, where more than 40 lessons and 200 videos await. It also maintains 24/7 customer support in 14 languages.
With more than 1,250 CFDs in a commission-free trading environment, traders can achieve cross-asset diversification with a slightly overpriced cost structure. AvaTrade offers its traders the core MT4/MT5 trading platforms and deploys its proprietary WebTrader, AvaOptions, and AvaTradeGO. Social traders can diversify their portfolios through DupliTrade, ZuluTrade, and MQL5 Signal Service.
Pros & Cons
- 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
- Trading costs competitive but nothing special
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM provides traders with one of the best all-around offers. Forex traders can get maximum leverage up to 1:2000. The well-regulated trading environment, by three regulators, has its excellent execution statistics confirmed by Big Four accountancy PricewaterhouseCoopers Limited (PwC). It scores well in transparency and security. The 30% deposit bonus to $250 and the Loyalty Program, limited to $10,000, complement the trader-friendly cost structure in its ECN account. FXTM upgrades the MT4/MT5 trading platforms with six add-ons and fully supports automated trading solutions. It also developed a proprietary trading platform, FXTM Trader. Manual traders benefit from the FXTM Pivot Points Strategy and FXTM Trading Signals.
Pros & Cons
- 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
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull 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.
Pros & Cons
- 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
- Limited deposit options
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap is another competitive Australian broker with leverage of 1:500 and outstanding technology infrastructure that ensures high-speed execution. It only offers a limited asset selection and fails to upgrade the out-of-the-box MT4/MT5 trading platforms. Traders with existing trading solutions and a focused trading strategy will benefit from the competitive ECN cost structure. Eightcap is ideal for scalpers and high-frequency traders, providing deep liquidity to traders. New traders have access to quality educational content, including a dedicated section on trading strategies. Eightcap additionally provides daily in-house research, its primary trading tool. Multilingual customer service and a transparent trading environment offer traders security, as Eightcap established a trustworthy relationship. While advanced trading features are non-existent, Eightcap focuses on the core trading environment and executes well in that category.
Pros & Cons
- 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
- Limited leverage in some areas
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- 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
- Availability of Iress geographically restricted
Best High Leverage Forex Brokers Trading Platform Comparison
| | | | | |
Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | CMA, CySEC, FCA, FSC Mauritius, FSCA | FMA, FSA | ASIC, CySEC, FCA, SCB | ASIC, CySEC, FSCA |
Year Established | 2006 | 2011 | 2014 | 2009 | 2005 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 0.1 pips | 1.3 pips | 1.0 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 0.2 pips | 2.0 pips | 1.2 pips | 1.4 pips |
Average Trading Cost Gold | $0.29 | $0.18 | $0.90 | $0.12 | $0.21 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | |||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
What are Leverage and Margin in Forex Trading?
One of the most notable benefits of Forex trading is high leverage. The most competitive regulatory environments permit brokers to provide up to 1:500, with some boosting it to 1:2000. The EU limits leverageto 1:30 for retail traders, and the US and Canada cap it at 1:50.
Leverage in Forex trading refers to the amount a trader borrows from the broker to increase their position size. Margin is the amount of money a trader needs to pay to open a leveraged position. For example, if the margin requirement is 1%, and the trader wants to take a $10,000 trade, then the margin requirement for that trade is $100. A 1% margin requirement is equal to 1:100 leverage.
The incorrect assessment of confusing leverage with high risk, results in counterproductive limitations, ignoring the fact that the absence of risk management cause losses, not leveraged trading accounts. Trading with well-regulated Forex brokers with high leverage can offer traders an edge, and when used with effective risk management, it can also increase the profitability of trading strategies.
Trading with high leverage brokers will not impact potential trading losses but using it without risk management will. Leverage allows skilled traders to deploy sophisticated trading strategies, achieve asset diversification with smaller portfolios, and boost profitability, but only with well-executed risk management procedures.
Tips for Trading with Low Margin Rates
Trading with Forex brokers with low margin rates yields notable advantages but carries elevated risks unless traders take proper precautions. Low margin rates equal higher leverage, which magnifies the profit and loss potential, and traders must ensure that their broker offers negative balance protection.
Low-margin traders who follow the below tips can keep their risk equal to high margin trading while improving their profitability.
1. Risk management: Traders who accept a 3.0% loss per position on a $5,000 portfolio risk a maximum of $150. It does not matter if the margin rate is 0.5% or 100.0%. The number of pips a trade can move in a losing direction will become proportional to the applied margin rate. Lower margin trades will arrive at the stop loss level faster than higher margin trades. 2. Cash levels: Overtrading is a portfolio killer, and low-margin traders must ensure they maintain adequate cash levels. It also allows traders to take advantage of unexpected trading opportunities. 3. Diversification: Traders should avoid positions exposed to the same currency, as it increases risk and narrows profitability. A well-diversified and balanced portfolio is the primary advantage of trading with Forex brokers with lowest margin rates.
Using a Broker's Leverage - Pros & Cons:
Before deciding on a leveraged account, traders should consider the pros and cons of using Forex brokers with high leverage.
The Pros of Using High Leverage Forex Brokers
High leverage allows traders with smaller portfolios to diversify their trades.
It provides a boost to the profit, but also the loss potential of a trading account.
Traders can deploy advanced and sophisticated trading strategies with less capital.
High leverage provides more freedom and flexibility.
Skilled traders can achieve their trading goals from a lower capital base.
The Cons of Using High Leverage Forex Brokers
Unskilled traders can lose their entire deposits.
Swap rates eat into the cash balance if traders keep positions open for too long.
New traders fail to implement risk management and engage in reckless trading.
Leveraged trading requires skill, knowledge, discipline, and the execution of strict risk management.
Most traders use high leverage in underfunded trading accounts and spike their risk profile.
What to Look for in a High Leverage Forex Broker
Forex brokers regulated in the USA, the European Union, or Canada cannot offer high leverage to residents of these areas. Most traders resident in other countries have the freedom to select among dozens of excellent brokers with competitive trading environments. I recommend traders consider the below aspects when narrowing their choices:
Margin Requirements - Traders must focus on brokers with low margin requirements to take full advantage of leveraged trading accounts. Anything at or below 1% for liquid assets represents an excellent and competitive offer.
Fees & Commissions - High leverage should never remain the sole aspect of the trading environment. A trader-friendly cost structure is more defining for a quality broker. Active traders should look for an ECN account, raw spreads, and commission of no more than $7 per round lot. A volume-based cashback program will lower the final trading costs.
Support for Trading Software - Most profitable traders use sophisticated automated trading solutions developed on the MT4 or cTrader infrastructure. Some operate from within the trading platform, while others require an API to communicate with MT4 or cTrader. Brokers with proprietary trading platforms must offer an API to allow traders to connect their trading software to the order execution service.
Account & Trade Minimums - Capital requirements to open an account differ, and some brokers require no minimum. I recommend choosing a broker with a low minimum and access to all trading features. It will allow traders to implement a deposit strategy to grow their portfolio that suits their circumstances. Traders should also ensure that the minimum transaction size is 0.01 lots.
How to Open a High Leverage Brokerage Account?
- Draw up a shortlist of the best high leverage Forex brokers which will accept you as a client. Don’t forget that if you live in the EU, the USA, or Canada, most Forex brokers will not offer you higher leverage than 30 to 1 or 50 to 1 on major Forex pairs.
- Check the maximum leverage each broker will offer you, which will depend upon your country of residence, and remove any brokers which will not offer you the leverage amount you want.
- Compare the remaining brokers other attributes, with the two most important being regulation and fees. You can probably narrow down your shortlist much more after this step to just one or two potential brokers.
- Consider narrowing down your list even more by evaluating nice-to-have features such as trading platforms etc.
- Open demo accounts with your remaining shortlisted brokers, and after a few weeks of paper trading you will likely have seen enough to know whether you will feel comfortable opening an account there with real money.
- Finally, open a real money account by following the account opening instructions at the high leverage Forex broker(s) of your choice.
Bottom Line
Trading with one of the high leverage Forex brokers does not only make sense but remains a requirement for committed Forex traders seeking to trade for a living. It does require tremendous skill, knowledge, and experience. Traders must also understand the necessity of risk management. While between 70% to 85% of traders lose money, which has nothing to do with leveraged trading accounts, those who master this trading tool can join those who earn consistent profits. As always, education and patience remain paramount to use leverage effectively.
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