High Leverage Forex Brokers 2021

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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 Brokers 

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.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
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.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
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.
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage
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.
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives
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.
Best all around broker
High floating leverage + fast execution

AvaTrade, Highly regulated, choice of fixed or floating spreads.
Pepperstone, Great ECN execution on MT4 platform.
Markets.com, Excellent educational offerings.
Eightcap, Competitive pricing + excellent daily videos.
FXTM, Best all-around: high floating leverage + fast execution.

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade 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.

Pepperstone

4.5/5 in this category
In Summary
Great ECN execution on MT4 platform

Pepperstone provides traders with a maximum leverage of 1:500 and one of the most competitive trading environments for Forex traders. The 27 custom indicators and add-ons for the MT4/MT5 trading platforms are market leading. Traders may also opt for the ECN trading platform cTrader, and all three fully support automated trading solutions. Myfxbook Autotrade, MetaTrader Signals and DupliTrade provide social traders with excellent choices.

Other trading tools include Autochartist, VPS hosting, and its API for third-party trading systems to connect to Pepperstone. Granting another edge is the ECN pricing environment together with the Pepperstone Active Trader program. The execution speed makes it a primary choice for scalpers and high-frequency traders. It also delivers quality research and education but requires a minimum deposit of $200. Pepperstone also maintains a quality in-house research team and generates valuable educational content.

Markets.com

4.5/5 in this category
In Summary
Excellent educational offerings

Markets.com is another well-regulated and trusted multi-asset CFD broker, where traders get maximum leverage of 1:300 but must commit a minimum of $250. With an asset selection of more than 3,600, it offers an outstanding choice. The UK publicly listed corporate owner Playtech PLC, a constituent of the FTSE 250 index, adds a layer of security and trust. Markets.com treats all traders to the same trading conditions, irrelevant of portfolio size. New traders will benefit from an outstanding educational section at Markets.com.

The out-of-the-box MT4/MT5 trading platforms cater to automated traders, and Markets.com presents eleven competitive trading tools. It also developed its proprietary trading platforms. The personalized financial live-stream service XRay is another excellent tool, and traders enjoy one of the best commission-free cost structures, but CFD pricing remains average. 86% of all placed orders faced zero or positive slippage, confirming access to deep liquidity.

Eightcap

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

Eightcap 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.

FXTM

4.5/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

FXTM provides traders with one of the best all-around offers. For a minimum deposit of just $10, Forex traders can get maximum leverage up to 1:2000, making FXTM one of the leaders in both categories. 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, while FXTM Invest offers retail account management.

What Are Leverage and Margin in Forex Trading?

Forex trading offers several advantages over equity trading, making it an excellent addition to a well-diversified portfolio. The Forex market is open 24/5, allowing traders more flexibility to trade on their time. 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 it to 1:30 for retail traders, and the US and Canada cap it at 1:50, making it the three least competitive Forex trading environments.

The incorrect assessment of confusing leverage with high risk, results in unfavorable and 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 will offer traders an edge, and when used with risk management, it also increases the profitability of trading strategies.

Trading with high leverage brokers will not impact potential trading losses but using it without risk management will. It also lowers the capital required to open trades, but inexperienced traders take larger positions, often in underfunded accounts, which leads to losses. For example, if a trader has a $5,000 portfolio and sets a maximum loss tolerance of 2.5% per trade, it will result in a $125 loss. Leverage will not change the $125 loss, but over-trading and over-positioning will. In a standard account with the US as the account currency, a 1. pip move in a 1.0 lot EUR/USD position equals $10. Taking a 0.10 lots position, where one pip is $1, in a 1:1 leveraged account allows the trader to place the stop loss 125 pips away before reaching a $125 loss. Using 1:100 or 1:500 leverage will not alter the $125, but most traders increase the lot size or fail to adjust the stop loss, both aspects of risk management, and instead of a tolerable $125 loss, they may face a $1,250 loss or significantly more. 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.

The EU, US, and Canada maintain the least competitive leverage regimes. International brokers operate from trader-friendly jurisdictions and grant clients between 1:100 and 1:500, depending on the portfolio size. Leverage in Forex trading refers to the amount a trader borrows from the broker to increase their position size. Brokers offer risk-free loans to traders and charge an overnight fee known as a swap rate. It is the interest traders pay to their broker for borrowing funds. Negative balance protection and stop-out levels ensure that the broker cannot lose the capital it extended to clients. 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.

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.

What Are the Pros and Cons of Using a Broker’s Leverage?

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

The choice of a high leverage Forex broker is not available to all traders. Those in the EU, the US, and Canada have no access to them. Most international traders 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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

Criteria Used to Rank the Best High Leverage Brokers

We reviewed over 100 brokers in-depth based on eleven criteria from the perspective of a trader. Each research consisted of over 2,000 words and lasted more than ten hours. We ensured the most comprehensive approach to identify the best high leverage brokers.

The eleven criteria used in our research consist of:

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.

FAQs

Which broker has the highest leverage?

Offshore brokers and those in Australia usually offer the highest leverage, at or above 1:500.

What is the highest leverage in Forex?

The highest leverage advertised in Forex is 1:3000.

Is higher leverage better in Forex?

In the toolbox of skilled traders, higher leverage is better in Forex. It offers more flexibility, increased profit potential, and lower capital requirements to achieve trading goals. Unskilled traders must learn how to use leverage or risk total loss.

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.