Best leverage for $30

A big advantage of leverage is that you can make larger investments with a low amount of money.

No deposit forex bonuses

Leverage: trading with leverage explained, best leverage for $30.

You do not need to have the full value of your trade on your trading account.

With an increase of $1 you get a profit of $1.
If the stock drops $1, you will achieve a loss of $1.

Leverage: trading with leverage explained

When you invest you can apply leverage. But what is leverage? Simply put, leverage makes it possible to make a larger investment with the same amount of money. This allows you to take greater advantage of price fluctuations. But how does leverage work and what are the risks of trading with leverage?

What is leverage?

When you invest, you can use leverage whenever you want. Leverage is always displayed as a ratio, for example 1:30. When the leverage is 1:30, this means that you can trade with $30.000 by investing only $1,000. Leverage makes it possible to open larger trades.

Where can you trade with leverage?

Many brokers offer the possibility of applying leverage. Usually CFD's are used for trading with leverage. You can easily apply leverage by trading with a larger amount than you deposited in your account. Do you want to know which brokers offer trading with leverage? We've listed the best parties for you:

The effect of leverage: some examples

When you apply leverage, your potential gains and losses increase significantly. When you buy a stock for $10 you can achieve the following results:

With an increase of $1 you get a profit of $1.

If the stock drops $1, you will achieve a loss of $1.

When you apply a 1:10 leverage, you get other results:

With an increase of $1 you get a profit of $10.

If the stock drops $1, you will achieve a loss of $10.

Later in this article we will show how leverage works by using a more comprehensive example.

How does leverage work?

You can use leverage with an online broker. Here you see an overview of online brokers where you can trade in stocks with leverage. After opening an account you can directly use leverage. You apply leverage by investing more money than you deposited on your account. But how is the leverage handled within your investment account?

Leverage can be compared to a loan. The broker finances a large portion of the purchasing price and the difference between the opening and closing price will eventually be settled in your account balance. You are never the owner of a stock; the broker will take care of both buying and selling. When trading CFD's, you don’t have any other responsibilities because you’re never the owner of the stock.

Example of trading with leverage

In this example, we assume that you have $1000 in your trading account. You decide to buy shares for this amount at a price of $10. The price increases during the day, and when the price hits $12 you close the position again. What would be the results of these investments with and without leverage?

Without leverage: the price has risen $2 and for $1000 you could buy 100 shares. These 100 shares have increased in value by $2. Your total profit in this case is $200 or 20%.

With leverage: you decide to apply a leverage of 1:10 to your investment. You can now buy shares for $10,000. You can open a trade on 1000 shares. These shares have increased in value by $2. Your total profit in this case is $2000 or 200%.

As you can see, in this case you would make a larger profit by using leverage. Remember, however, that the same could have happened in the opposite direction. If the price had decreases your loss would have been larger when you would apply leverage!

Benefits of high leverage

A big advantage of leverage is that you can make larger investments with a low amount of money. You do not need to have the full value of your trade on your trading account.

A second advantage of a leverage is that it is easier to speculate on small price changes. By using leverage you can earn more money from a small price increase. This makes active trading more interesting.

Leverage financing costs

You always pay fees to use leverage. These costs are calculated in the form of financing costs. The broker finances a large part of the investment when you apply leverage. You have to pay interest on this amount. The amount of interest you have to pay on your leverage may vary by broker and by investment product.

Investing with leverage is therefore only attractive for investments in the shorter term. Do you want to make a long-term investment? Then it's smarter to buy shares and to hold on to them for a longer period of time.

Be careful when using leverage!

Higher leverage also brings higher risks. With leverage your loses increase faster than without leverage. Remember that the leverage effect works in both ways. You should therefore use leverage responsibly.

When you just start trading it is wise to avoid using high leverage. Only when you understand how you can make money with trading it is wise to start applying leverage. When you use this powerful tool correctly you can increase your profits enormously!

When you use leverage you must have enough money available on your account. Brokers apply a maintenance margin which indicates the amount you need on your account to keep your trading positions open. When the amount in your account is no longer sufficient to keep your positions open, you will receive a margin call. This can result in losing your full investment!

Useful links: start trading directly!

Free ebook 'earn your first 500 pounds trading '
learn everything you need to know:: download the ebook for free >> >>

Want to try trading for free without any risk?
Receive a free demo: click here and receive your free unlimited demo!

Compare the best brokers & begin immediately
try trading with a demo account?Compare brokers >> >>

1" :pagination=pagination :callback=loaddata :options=paginationoptions >

Best high leverage forex brokers for 2020

Last updated: 29 july 2020

The forex market, with its $5 trillion trading volumes isn’t just the largest investment industry in the world but is also the most liquid. The huge market size, liquidity and added perks like the availability of high leverages make it the most attractive market for most individuals and institutional investors.

Several regulatory bumps that have emerged in the past decade have threatened to disrupt trade by attacking its most attractive feature – leverage. It started in 2010 when america’s CFTC set a 1:50 cap on the leverage afforded to forex brokers. Eight years later, europe’s ESMA followed suit and introduced a 1:30 leverage cap in august 2018. You, however, don’t need to panic as there still exist numerous reputable international brokers with leverages as high as 1:3000.

We have scoured the internet vetting the different high leverage brokers currently available and came with a list of 10 best brokers so you don’t have to. But first, we share with you the criteria we used in separating the wheat from the chaff.

Best high leverage brokers for 2020

Cryptorocket: beginner-friendly platform with 1:500 leverage

XM global : leverage up to 1:500 and 60 currency pairs to choose from

Instaforex : extra fast trade processing and high security

Octafx: 1:500 leverage, no deposit or withdrawal fees

Forex.Com : best for U.S. Customers and heavily regulated

Criteria used to rate high leverage forex brokers

While we have our focus set on finding the different high leverage traders, our tests aren’t blind to every other factor that makes a reputable forex broker. Complimentary factors that helped inform our decision to settle on the best brokers included:

Cost of trading (spreads, fees, and commissions)

Account options (lost size, spreads and payment options)

Customer support

Regulation and compliance

Number of currency pairs offered

Data security

Risk management (stop loss and guaranteed stop loss)

Research, news, and tools (webinars, live streams, ebooks and videos)

Trading platform interface (user-friendliness and indicators)

Good trade execution

Top 10 high leverage brokers

1. Cryptorocket

Over the years one of the most controversial topics of the retail trading market has been leverage, and the reason for this was the fact that many brokers used to offer high levels of leverage to individuals that were not sophisticated enough to understand the risk of it. After a stronger regulation in both european and american markets, the amount of leveraged offer to retail investors have decreased dramatically.

Cryptorocket is a fully CFD dedicated firm that has become known for offering a vast range of asset classes and also high leverage to modern standards. A leverage of 1:500 used to be considered something completely norm just a couple of years ago, but today is almost unknown in most regions.

If you are planning on utilizing a strategy that requires high leverage or if you are simply interested in trading with a reliable and also strong platform we recommend you look at cryptorocket as your go-to option.

2. XM global

While XM UK and XM global are subsidiaries of the larger XM global limited, you will only ENJOY the benefits of high leverage, up to 1:888, from XM global. The former is FCA-UK regulated and thus operates within the 1:30 leverage cap. We were particularly attracted to XM global’s comprehensive approach to forex trade with different accounts catering for both beginners and advanced traders. It gives you access to all the seven major currency pairs with tight spreads from as low as 0.6 pips.

More about XM broker

After opening a trading account with XM, you become eligible for their different types of bonuses. These include the no-deposit bonus, $30, for every new account and a 100% matching bonus for the first deposit.

If you are new, you will probably want to sign up to their free introduction to forex trading course. It is availed in the form of articles, ebooks, videos and regular webinars- hosted several times a week.

Both beginners and advanced forex traders can also opt to have one of XM’s personal account managers handle their accounts, at a fee. And should you chose to manage your account, XM avails daily signal updates and market outlook for more informed trade execution.

3. Instaforex

Established in 2007 and headquartered in kaliningrad, russia, instaforex comes up as one of the best eastern europe based forex brokers. Its high leverages of 1:1000 in a region that is dedicated to crippling leveraged traders makes it stand out. So does its multi-account feature that allows traders to host three accounts on their servers simultaneously and support for all major currency pairs.

How does it work?

Instaforex caters for both the beginners and expert traders. Either can start by opening a demo account or a real trading account that only calls for $1 in minimum deposits. In both cases, all instaforex traders have access to training resources and video tutorials. The broker will also grant their clients immediate access to their elaborate charts as well as a wide array of technical analysis tools to help execute trades.

While analyzing the broker, we particularly liked the level of instant support they provide their traders through multiple communication channels. We also liked the level of technology investment they have put towards ensuring their brokerage is available on different options like the web trader, MT4 and MT5.

Apart from its high leverage – 1:500 – octafx makes it to our list of best US forex brokers because of its ultra-low fees and even lower spreads that range from 0.4 to 0.6 pips. We also liked its copy trading option that allows beginners to make more informed trades by copying and learning from the more experienced traders.

More importantly, octafx runs regular promotions that grant a select group of traders access to higher leverages. Their last campaign targeted the asian market, allowing the MT4 traders from the region to manually raise their leverage from 1:500 to 1:1000 and the MT5 traders from the standard 1:200 to 1:500.

How does it work?

You start by opening a trading account and choosing a trading platform; you can opt for MT4, MT5, their web trader platform or the octafx trading app. Either of these is available in over 10 languages and require a minimum deposit of $5 with a 50% bonus on your first deposited amount.

Here, you can trade all the major currency pairs with a trader that executes trades fast through the one-click trading feature. Apart from the copy trading feature, we also liked their daily market outlook and constant trading signals.

5. Forex .Com – best option for US costumers

In a market that is speedily collapsing the leverage walls, it is impressive to see the 1:400 offered by forex.Com. We feature it on this list not just because of the competitive leverage and fixed spreads but also because of its longstanding reputation in the forex market. Having been established in 2001 and forex.Com is one of the most successful and reputable high leverage brokers.

More about forex.Com

We believe forex.Com has one of the largest collections of tradeable currency pairs, 80+. We also liked its clear and competitive pricing model that captures every transaction as well as its elaborate trading platforms. Apart from providing a trader with a wide resource of technical analyses tools, we also observed that the broker keeps tabs on the forex markets regularly and forwards tips on possible price action influencers.

6. Forextime (FXTM)

With a higher than average leverage provision of 1:1000, a strong brand reputation and a huge collection of trading currency pairs, FXTM, easily makes it to our list of best forex brokers. Such other factors as expansive trading platforms, from metatrader to webtrader and mobile apps, as well as its foolproof risk protection also informed our decision to include it in our top ten list.

More about FXTM

FXTM broker places a huge emphasis on forex education and constant trading strategy revaluation and is, therefore, sending regular materials and hosting webinars. We also liked the broker’s strong emphasis on data security, fast execution of trades, and a supportive customer service team.

We also noted that FXTM has adopted one of the fastest payment processing technologies, capable of processing a huge base of payment options. The number of forex trading pairs available here is however capped to 50 but features all the major trading pairs.

After two decades of active involvement in money markets and a leverage of 1:1000, alpari easily passes as one of the most reputable forex brokers. It also makes it to the list by virtue of being one of the most decentralized brokers, located in eight locations across the world and over 60 currency trading pairs.

More about alpari

One of the most unique features with alpari is that it maintains a special binary trader platform for clients alongside the already versatile trading platform that comprises of MT4, mt5, web and mobile application traders. We also liked the level of differentiation they have put in place for different accounts as well as the different bonuses availed to clients upon registration, making the first deposit.

Additionally, the broker keeps tabs on their traders account activity, rewarding active and loyal traders with a premium membership. Perks here include free deposits and withdrawals.

8. Nordfx

Started in 2008 and headquartered in mauritius, nordfx makes it to our list of best forex brokers because of its high leverage, 1:1000. The broker’s services have also received a node from numerous global organizations and currently operated under the regulations of such global bodies as cysec. It also stands out because of its versatility in trading platforms that include MT4, MT5, android and ios app and a webtrader.

More about nordfx

Nordfx maintains three manual trading accounts whose minimum deposit amounts range from $10 to $500 and spreads from 0.0 pips to 2 pips. We, however, noted that while it supports all the major currency trading pairs, its collection of currency trading pairs is limited to 33. Nonetheless, nord’s appreciation for technology extends far beyond their platform versatility to touch on its speedy payment processing system.

9. Vantagefx

Vantage FX allows you to trade with leverages of up to 1:500. This and fact that that it has built a strong reputation since its establishment in 2009 plus its regulation by the leverage-friendly australian ASIC played key roles in ensuring it made it to our list of best forex brokers. Apart from the usual versatility in metatrader and web trader platforms, vantagefx has also partnered with zulutrade, the social trading network, to facilitate social trading.

More about vantage FX

Vantagefx stands out from most other equally reputable australian and south east asia brokers because of their 15% welcome bonus for initial deposits above $1000. The broker will also reward a trader who successfully refers another with $100 deposit to a live account.

The broker, however, demands $100 as a minimum deposit amount that can be used to trade over 40 currency pairs. Equally interesting to us was the free VPS service offered by the broker as well as a binary options trading feature.

10. IC markets

Australian based IC markets makes it to the list of best forex traders available today because it is one of a handful offering such a high leverage 1:500 to robots, scalpers and high volume traders. While most brokers may offer higher leverages than this, we noticed that they only target manual traders and have implemented a graduated leverage allocation schedule that decreases in relation to an increase in trading volume.

More about IC markets

Apart from the leverage, fact that it targets scalpers, and automated trading market, we liked IC market’s spreads and order execution speeds. Note that while most brokers adopt floating spreads that keep fluctuating, IC markets embrace a fixed spread for their base trading currency pair EURUSD that averages 0.1 pips.

The broker is also alive to the technological demands of the industry, particularly when dealing with automated traders and has in effect fine-tuned its system to post some of the fastest trade executions speeds in the industry.

11. Financial business services (FBS)

FBS forms the crème of the industry with its ultra-high leverage extending to 1:3000. You will also like it if you are looking for a forex broker with differentiated types of accounts catering every type of trader, from CENT account for beginners to ECN accounts for high volume traders, scalpers, and automated traders.

More about FBS

One of our most unique observations about FBS includes the fact that the broker covers the commissions and therefore has no deposit or withdrawal fees. The spreads here range from 0.0 pips for the zero spreads account to 3 pips for the micro trading account.

We were also intrigued by the fact that FBS versatility doesn’t just start and stop with the establishment of multiple types of accounts and superior technologies. It also covers global reach where the trader is available for most global citizens, safe for US traders, and also supports most major international languages.

Bottom line

The american and european jurisdictions may have placed a cap on leverage, but this hasn’t deterred international brokers. The forex market isn’t short of high leverage brokers willing to help further your trades and extend your bottom line while shielding your accounts from heavy losses and negative balances.

We have taken the liberty to explore the market and come up with a list of the best ten high –leverage brokers operating within reputable regulatory frameworks, offer such operational merits as fast payment processing and order execution, data security, and customer support.

If you are actively looking for a good high leverage forex broker, we advise that you go through this list carefully, and only settle with a broker that best suits your needs. For instance, if you are relatively new to the trade, we recommend that you consider a broker that is genuinely committed to advancing forex education.

Faqs

Can I incur negative account balance due to leverage trading?

This is entirely dependent on the high leverage broker you chose. A majority of the brokers we have listed here have implemented safeguards like guaranteed stop loss and low fixed spreads that guard against huge losses and negative trading account balances.

What is the difference between 1:30 and 1:3000 leverages?

Leverage ratios denote the range within which you can use the forex broker’s loan capital in executing your trades. A higher ratio, therefore, implies access to a higher trading loan capital.

Which is the best high leverage forex broker?

In an ideal situation, the best high leverage broker would be one that offers the highest leverage ratios. But you have to look beyond this and evaluate such other factors as reliability, regulation, and the level of customer support advanced to the traders. We have taken time to evaluate them all using these reliability metrics, so you don’t have to, and we believe that any of the above-mentioned brokers fulfill this criterion.

What is the best leverage to use in forex?

Note that the higher the leverage ratio, the higher the risk. The best leverage ratio, therefore, depends on your risk tolerance.

Which is best between manual and automated forex trading?

We believe that there is a reason more than 70% of all forex market trades today are executed by automated trading robots. The forex market is highly volatile and it takes seconds, or even milliseconds, for prices to change making it difficult to analyze and execute meaningful trades manually.

Best high leverage forex brokers

Dan schmidt

Contributor, benzinga

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.Com

Currency traders have a few advantages over traders of other types of securities. The market stays open 24 hours a day during the work week and the best forex broker commissions are often a fraction of what online stock brokers charge. But the biggest edge is margin requirements and leverage. You don’t need a big infusion of capital to begin a career as a forex trader, just the right tools and the right broker.

Best high leverage forex brokers:

Best overall: FOREX.Com – open an account

HYCM

Avatrade

IC markets

Pepperstone

Best for

Overall rating

Best for

1 minute review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.

Best for

New forex traders who are still learning the ropes

Traders who prefer a simple, clean interface

Forex traders who trade primarily on a tablet

Easy-to-navigate platform is easy for beginners to master

Mobile and tablet platforms offer full functionality of the desktop version

Margin rates are easy to understand and affordable

Access to over 80 currency pairs

U.S. Traders can currently only trade forex

Customer service options are lacking

No 2-factor authentication on mobile

Account minimum

Pairs offered

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

FOREX.Com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.Com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.Com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.Com is impressive, remember that it isn’t a standard broker.

Best for

Impressive, easy-to-navigate platform

Wide range of education and research tools

Access to over 80 currencies to buy and sell

Leverage available up to 50:1

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

Though australian and british traders might know etoro for its easy stock and mobile trading, the broker is now expanding into the united states with cryptocurrency trading. U.S. Traders can begin buying and selling both major cryptocurrencies (like bitcoin and ethereum) as well as smaller names (like tron coin and stellar lumens).

Etoro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though etoro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best for

International forex/CFD traders

New cryptocurrency traders looking for an easy-to-use platform

Traders who want to buy and sell cryptocurrencies on-the-go

Simple platform that is easy to master

Copytrader feature that allows new traders to copy the same strategies used by professionals

Virtual dummy account that gives you $100,000 to practice trades

U.S. Traders currently limited to cryptocurrencies

Only 15 major coins available to trade

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the united states, it can be a great choice for residents of the other 140 countries where it offers service.

Best for

Investors who want a customizable fee schedule

Traders comfortable using the metatrader platform

Islamic traders who need swap-free accounts that don’t build interest

Wide range of currency pairs available

Excellent selection of educational tools

$0 deposit and withdrawal fees

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

A fully regulated broker with a presence in europe, south africa, the middle east, british virgin islands, australia and japan, avatrade deals with mainly forex and cfds on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in dublin, ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best for

Beginners

Advanced traders

Traders looking for a well-diversified portfolio

Controlled by regulatory agencies of multiple countries

Choice offered in terms of trading platforms

Support available in 14 languages and trading platforms in 20 languages

Practice/demo account available for trying out

Breadth of trading assets

Does not accept customers from the U.S. As it isn’t regulated in the U.S.

Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

What’s leverage and margin in forex trading?

Traditional stock brokers in the united states often offer margin trading to their clients. The broker will lend money to the client for additional stock purchases and then make money in interest when the loan is repaid. Margin rates vary, but most online brokers charge clients between 5% and 9% to borrow money, depending on the amount. Why would clients want to borrow money for the stock market from their brokers?

They want to crank up the leverage on trades.

Leverage refers to how much borrowed money is involved in a trade. In most stock brokerages, investors can get 2:1 leverage, which means they need $50 in their account to trade $100 in capital. Obviously, leverage adds risk to any trade. Since you don’t just lose your capital if it goes bad, you owe your broker money.

Excessive leverage has killed many financial firms, including lehman brothers and long term capital management. But when it’s used properly, you can generate tremendous profits with little upfront capital.

In forex trading, leverage can often be as high as 500:1. Since currencies move incrementally compared to stocks, using leverage doesn’t carry the same risks. When trades are measured in fractions of a penny, 500:1 leverage doesn’t seem excessive. Forex brokers use margin requirements to determine how much leverage currency traders can use per trade. This is expressed as a percentage, such as USD/EUR trades that require a 2% margin.

United states limitations

Forex trading is subject to stricter regulations in the united states than most countries in the world. Europe and australia have no aversion to leverage as high as 500:1, but U.S. Law limits forex brokers to 50:1 leverage.

Additionally, many forex brokers offer contracts for difference (cfds) on indices, bonds, commodities and even cryptocurrencies. These products are highly speculative and banned entirely in the U.S., which means metatrader 5 has practically no uptake.

What to look for in A high leverage forex broker

Choosing a forex broker depends not only on your trading preferences but also the country you live in. United states forex traders won’t be able to use the highest available leverage or use popular trading programs like metatrader 5. When you pick a broker, here are a few things to pay attention to:

Margin requirements: in the united states, margin requirements are limited to 2% (50:1 leverage). Internationally, you can lever trades up to 500:1 on most major currencies. You don’t need to use high leverage on all trades, but make sure to pick a broker with limits that work for you.

Commissions and fees: forex brokers make money in two ways: from commissions or from the spread. Many brokers have spread-only and commission accounts available, and commission accounts get reduced spreads. Brokers have fee charts on their websites. Make sure you understand all charges before you open an account.

Support for trading software: many forex brokers have their own proprietary trading software, but also offer popular platforms like metatrader 4 and ctrader. If you like to trade using metatrader 4, make sure the broker you choose supports it!

Account and trade minimums: capital required to open an account varies by the broker, as does the amount needed to complete a trade. Some brokers may have no account minimum, but all will have trade minimums.

The best high leverage forex brokers

Using the above criteria, benzinga has identified the best high leverage forex brokers on the market today. High leverage in the united states is limited to 50:1, but for international brokers to qualify, they must offer 500:1 leverage for at least a few major pairs.

Leverage 1:50 forex brokers

Leverage is one of the fundamental concepts each forex trader needs to be familiar with because it will determine how much money they are about to win or lose depending on the strategy they use and the market movements. Leverage is an option offered by many brokers, and it will vary depending on the broker’s policy.

But what is it exactly? The term is widely used in finance and it refers to various techniques that use borrowed funds or debt rather than owned capital for making an investment. When trading with leverage, one has the opportunity to trade volumes larger than what would be possible with their own capital. In short, by taking advantage of the leverage offered by forex brokers, traders “borrow funds” from them to multiply the potential profits from a successful transaction.

Best forex brokers for united kingdom

This may sound like an attractive offer because successful trades bring more than a decent profit. However, higher leverage constitutes a higher risk and if a deal goes bad, traders would lose more money than they would have lost without leverage. This is why they should carefully select a forex broker and always pay close attention to the conditions they are offered.

What is financial leverage?

As mentioned above, leverage could refer to several different methods for obtaining assets using debt rather than fresh capital to avoid using too much equity. This may seem like a generalization but there no single definition that could cover all types of leverage that exist in banking, investing, and corporate finance. In its essence, the term originates from the effect of the lever in physics and it is among the most commonly used techniques in trading.

Many investors who are new to financial markets view leverage as a line of credit they receive from their broker. But that is not true at all. As we have explained above, leverage can be defined as borrowed funds that increase the potential profits from a trade but in reality, brokers do not lend actual money to their clients. Instead, they extend leverage to retail traders by borrowing from banks, clearing agents, and liquidity providers.

To better understand how financial leverage is used in trading, we need to know the basics of it. In essence, most forex and CFD brokers are broker-dealers, acting as intermediaries between their clients and the market. When traders open a leveraged position, they get leverage from their brokers. In other words, they borrow capital that is multiple of their own funds – 2, 5, 10 or 100 times the equity on their account. The amount of leverage is displayed as the ratio of the clients’ funds to the capital borrowed from the broker – 1:2, 1:5, 1:10 or 1:100.

With a leverage of 1:50 and an investment of only $100, traders can open positions worth $5,000. If the trade turns a profit, this profit is not paid by the broker – it comes from the other party in the trade, the losing party (this could be another trader, a bank, or the broker). If traders lose, the lost funds are debited from the traders’ account balance. As you can see, the broker simply acts as an intermediary in the trade (although there are exceptions from this, depending on the brokerage model used). In any case, the 1:50 leverage amplifies both profits and losses – by a factor of 50 times compared to profits/ losses resulting from trading without leverage.

How does leverage work in forex?

In forex trading, leverage works in quite a straightforward way and those familiar with trading leverage would find there is nothing specific to its use in the foreign exchange market. Probably the only thing that should be mentioned is that while for stocks and other more traditional instruments, brokers usually offer leverage around 1:5 up to 1:20, in forex trading, traders prefer much higher leverage.

The reason is that the foreign exchange market is the largest market in the world in terms of trading volume and the typical transactions in the interbank market range from hundreds of thousands to millions of dollars. In april 2019, trading in the forex markets averaged $6.6 trillion per day according to the bank for international settlements. The participants in these trades are mostly banks, international corporations, and hedge funds, which suggests that the sizeable transaction volumes are simply too huge for the majority of private, retail investors.

At the same time, the foreign exchange market has become accessible to individuals in the past few decades due to the emergence of fully digital trading systems and real-time online platforms. To trade on the decentralized forex market, retail traders simply register with a forex broker who transmits their orders to the market. The use of leverage, however, is a fundamental part of this process since it allows individuals to trade huge volumes while providing only a portion of the transaction value.

The process is quite simple – forex brokers require a certain deposit to be made to provide their clients with leverage of 10, 50 or 100 times their capital. The deposit is referred to as “required margin” and its purpose is to cover the potential losses in the event of a failure. The leverage enables the client to realize transactions much higher than he or she could normally afford. So, for instance, if you are using the services of a broker with leverage of 1:50, you will be required to invest only $2,000 in order to open a position worth $100,000.

In this case, the margin required is $2,000 or 2% of the total value of the transaction. If the trade is closed on a profit, the profit is based on the total value, which means that traders can realistically earn several thousand dollars with a deposit of $2,000. However, if the trade is not successful, the client will lose the same amount as a result of the leverage. This is why leverage is often described as a double-edged sword – it can multiply both profits and losses.

Is 1:50 leverage suitable for you?

Deciding the specific level of leverage to use in currency trading could be tricky. Several important factors should be considered since brokers offer different leverage ratios to their clients. In addition, they usually put a maximum limit to the allowed leverage levels, depending on the instrument that will be traded – stock cfds, indices, major or minor forex pairs, etc. Traders should know that leverage is flexible and can be adjusted to one’s needs and capabilities.

To determine whether levels of 1:50 are suitable for you, you need to take into account your knowledge and skill in forex trading, your broader understanding of the financial markets, your starting capital, and your tolerance for risk. Moreover, most traders adjust the leverage ratio they will use to their trading style and the strategy they apply – there are day traders, scalpers, swing trader, position trader, algorithmic trader, and event-driven trader who can use even more strategies.

Regulation

For years, forex traders could use freely leverage up to 1:1,000 but in the past few years, changes in national and international regulation have put a limit to the maximum leverage for retail traders. Financial regulators most notably in the united states and the european union have introduced various measures to increase customer protection in high-risk forms of trading such as cfds and derivative forex products trading.

The maximum allowed leverage in the US, for instance, is 1:50, while retail traders in the EU can use up to 1:30 leverage on major pairs. The rest of the restrictions introduced by the european securities and markets authority (ESMA) are as follows:

20:1 for non-major currency pairs, gold and major indices;

10:1 for commodities other than gold and non-major equity indices;

5:1 for individual equities and other reference values;

2:1 for cryptocurrencies

Initial capital

Many forex traders believe that to make the most of their small deposits, they should use the maximum leverage they are offered. This is a common misconception that often results in losing one’s entire trading capital. Many brokers offer micro accounts for retail traders where the minimum deposit requirement is only $50. Usually, such accounts are intended for less-experienced traders who cannot afford to spend $20,000 on trading currencies.

Of course, a standard lot of 100,000 currency units will then be out of reach for such clients, which is why brokers may allow opening positions with a 0.01 lot, worth $1,000. With a leverage of up to 1:50, the trader can control volumes of $2,500 and using even lower leverage of 1:20 would be enough to open such a trade. Those who choose the 1:50 level, however, will be maximizing the potential profits from the transaction. At the same time, they will be trading at the highest risk possible.

Trading strategy

There are various types of trading strategies developed for buying and selling currency pairs. Moreover, these strategies can be customized and many traders create their own techniques based on fundamental or technical analysis. One of the most important things traders should remember is that the longer they plan to keep a position open, the lower leverage they should use.

This is why leverage of 1:50, which is quite high for novices, is preferred by day traders and scalpers. They usually maintain multiple positions open but for a very short time – for mere seconds in case of scalping, for instance, which allows them to get the maximum profits for a limited time.

Advantages of 1:50 leverage in forex

Leverage of 1:50 could be a wonderful tool for boosting one’s trading potential in forex trading. It comes with a few advantages and the first thing worth mentioning is that such relatively high levels allow retail traders with mini and micro accounts to trade large volumes on the foreign exchange market – something that is typically available only to large banks and institutional traders.

Another great benefit of using 1:50 leverage is that successful traders can make good, stable profits even they lose some of their initial capital. Losses are to be expected, after all. As we have explained above, leverage amplifies the potential profits as long as it is applied carefully and in combination with certain risk management techniques. Of course, traders should understand that leverage may act as a line of credit but it does not come with interest, which typically arises from credit.

Risks of using 1:50 leverage

Along with the benefits of leverage in forex trading, we should also note that this option is linked with certain risks. First of all, novices should not use leverage higher than 1:5 or 1:50. Once they have enough confidence and experience in the foreign exchange market, they could start experimenting with leverage ratios and adjust them to their trading style and strategy.

The main risk of using 1:50 leverage is, of course, associated with the possibility to lose a lot of money. In fact, it is possible to lose more than you have deposited in your account when using excessive leverage without any stop losses or other tools for fund protection. This could happen when sharp, unexpected market movements occur and the time for reaction is mere minutes. To avoid huge losses, traders who use high leverage (anything above 1:20) should apply various measures to protect their account balance.

Margin and leverage

Leverage up to 30:1

2:1 up to 30:1 depending on instrument

Negative balance protection

Real-time risk exposure monitoring

No changes in margin overnight or at weekends

6 asset classes - 16 trading platforms - over 1000 instruments.
Trade forex, individual stocks, commodities, precious metals, energies and equity indices at XM.

Leverage up to 30:1

At XM clients have the flexibility to trade by using the same margin requirements and leverage from 2:1 to 30:1 depending on instrument.

About margin

Margin is any payment required for the purpose of entering into a CFD position and it is expressed as the percentage of the position size (e.G. 5% or 10%). For example, on a 10% margin, a position of $10,000 will require a deposit of $1,000.

For forex, gold and silver, new positions can be opened if the margin requirement for the new positions is equal or less than the free margin of the account. When hedging, positions can be opened even when the margin level is below 100% because the margin requirement for hedged positions is zero.

For all other instruments, new positions can be opened if the margin requirement for the new positions is equal or less than the free margin of the account. When hedging, margin requirement for the hedged position is equal to 50%. New hedged positions can be opened if the final margin requirements will be equal or less than the total equity of the account.

About leverage

Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage is expressed as a ratio, for instance 5:1, 10:1, or 30:1. Assuming that you have $1,000 in your trading account and you wish to trade a position on USD/JPY, the leverage ratio available to you would be 30:1. In case you decided to use $500 of your funds to enter into that position, it means that you would hold a position worth $15,000 (500 * 30).

How would it be possible to trade 30 times the amount that you have at your disposal? At XM you have a free short-term credit allowance whenever you trade on margin. This enables you to purchase an amount that exceeds your account value.

XM leverage

Depending on the instrument traded at XM, the leverage ranges from 2:1 to 30:1. Margin requirements do not change during the week, nor do they widen overnight or at weekends.

Leverage risk

On the one hand, by using leverage, even from a relatively small initial investment you can make considerable profit. On the other hand, your losses can also become drastic if you fail to apply proper risk management.

Margin monitoring

At XM you can control your real-time risk exposure by monitoring your used and free margin.

Used and free margin together make up your equity. Used margin refers to the amount of money you need to deposit to hold the trade (e.G. If the leverage offered for a specific instrument you wish to trade on is 20:1, the margin that you will need to set aside is 5% of your trade size). Free margin is the amount of money you left in your trading account, and it fluctuates according to your account equity. You can open additional positions with it or absorb any losses.

Margin call

Although each client is fully responsible for monitoring their trading account activity, XM follows a margin call policy to guarantee that your maximum possible risk does not exceed your account equity.

As soon as your account equity drops below 100% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.

Stop-out level

The stop-out level refers to the equity level at which your open positions get automatically closed. The stop-out level in a retail client's account is reached when the equity in the trading account is equal or falls below 50% of the required margin.

Legal: this website is operated by trading point of financial instruments limited, registration number HE251334, with registered address at 12 richard & verengaria street, araouzos castle court, 3rd floor, 3042 limassol, cyprus.

Risk warning: cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.04% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money. Please consider our risk disclosure.

Trading point of financial instruments limited provides investment and ancillary services to residents of the european economic area (EEA) and the united kingdom.

This website uses cookies

By clicking “continue”, you agree to the default cookie settings on our website.

XM uses cookies to ensure that we provide you with the best experience while visiting our website. Some of the cookies are needed to provide essential features, such as login sessions, and cannot be disabled. Other cookies help us improve our website’s performance and your experience through personalising content, providing social media features and analysing our traffic. Such cookies may also include third-party cookies, which might track your use of our website. You may change your cookie settings at any time.

For more information please read our cookie policy.

This website uses cookies

By clicking “continue”, you agree to the default cookie settings on our website.

Read more, or change your cookie settings.

What are cookies?

Cookies are small data files. When you visit a website, the website sends the cookie to your computer. Your computer stores it in a file located inside your web browser.

Cookies do not transfer viruses or malware to your computer. Because the data in a cookie does not change when it travels back and forth, it has no way to affect how your computer runs, but they act more like logs (i.E. They record user activity and remember stateful information) and they get updated every time you visit a website.

We may obtain information about you by accessing cookies, sent by our website. Different types of cookies keep track of different activities. For example, session cookies are used only when a person is actively navigating a website. Once you leave the website, the session cookie disappears.

Why are cookies useful?

We use functional cookies to analyse how visitors use our website, as well as track and improve our website’s performance and function. This allows us to provide a high-quality customer experience by quickly identifying and fixing any issues that may arise. For example, we might use cookies to keep track of which website pages are most popular and which method of linking between website pages is most effective. The latter also helps us to track if you were referred to us by another website and improve our future advertising campaigns.

Another use of cookies is to store your log in sessions, meaning that when you log in to the members area to deposit funds, a "session cookie" is set so that the website remembers that you have already logged in. If the website did not set this cookie, you will be asked for your login and password on each new page as you progress through the funding process.

In addition, functional cookies, for example, are used to allow us to remember your preferences and identify you as a user, ensure your information is secure and operate more reliably and efficiently. For example, cookies save you the trouble of typing in your username every time you access our trading platform, and recall your preferences, such as which language you wish to see when you log in.

Here is an overview of some of the functions our cookies provide us with:

Verifying your identity and detecting the country you are currently visiting from

Checking browser type and device

Tracking which site the user was referred from

Allowing third parties to customize content accordingly

This website uses google analytics, a web analytics service provided by google, inc. ("google"). Google analytics uses analytical cookies placed on your computer, to help the website analyze a user's use of the website. The information generated by the cookie about your use of the website (including your IP address) may be transmitted to and stored by google on their servers. Google may use this information to evaluate your use of the website, to compile reports on website activity and to provide other services related to website activity and internet usage. Google may also transfer this information to third parties, where required to do so by law, or where such third parties process the information on behalf of google. Google will not associate your IP address with any other data held. By using this website, you give your consent to google to process data about you in the manner and for the purposes set out above.

The 5 best forex broker with high leverage – real comparison

The best forex brokers with high leverage are regulated, operate transparent trading conditions, and utilize the latest fintech.

But finding the forex broker that’s right for you and your trading experience can be somewhat of a daunting task. With leverage ranging from less than 1:500 up to 1:2000, it is vital that you know as much about forex trading as possible before you get your feet wet.

To help navigate the world of high leverage forex brokers, we have chosen our top five picks and reviewed them for you. We look at the top 5 forex dealers to see what each has to offer. Please read on to find out which brokerage fits your needs, whether you be a complete novice or a veteran forex trader.

The following FX brokers which we reviewed:

Bdswiss – swiss financial know-how

Roboforex – great offers and promotions

Blackbull markets – kiwi company with an excellent track record

IC markets – one of the biggest forex traders around

Vantagefx – trusted ECN broker

broker:	review:	spreads and fees:	regulation:	advantages:	open account:
1. Bdswiss	(5 / 5) ➜ read the review	starting 0.0 pips + $ 2 – $ 5 commission per 1 lot (negotiable)	cysec (EU), FSC (MAU)	+ maximal leverage 1:500 + individual offers + trading signals + raw spreads	$ 100 minimum deposit

What is high leverage forex trading?

Before we dive straight into the review, let’s take a few seconds to consider what we mean by high leverage. This phrase means the trader can use their funds plus ‘borrow’ capital to increase potential gains. The result is that even the smallest of traders to trade currency pairs at larger volumes.

However, while making possible far greater returns, the gearing effect also significantly increases the risks of losses. For example, you want to trade with a leverage of 1:1000. That means you only need $1 of capital to trade the amount of $1,000. The leverage will increase your position size. But in the end, you can always varify the size of the position.

1. Bdswiss

Bdswiss was formed in 2012 and is jointly headquartered in zurich, switzerland, and cyprus, the latter of which is an EU member state. It’s also overseen and regulated by the financial authorities in the USA, seychelles, and mauritius.

In less than a decade, bdswiss has grown rapidly, and today boasts over a million and a half registered accounts from clients in more than 180 countries. Bdswiss is now arguably one of the most prominent international forex trading groups in the world. The award-winning forex broker has grown its customer base through numerous branch offices, both in europe and the US. Though it does have offshore registrations in the seychelles and mauritius, bdswiss is generally considered a safe broker. It also has to comply with the european union’s strict financial regulatory framework and that of the united states.

Bdswiss, then, can be considered a safe harbor for your trading cash. And with leverage of up to 1:500 available, the trading group is one of the best forex brokers with high leverage. However, it is always strongly recommended you carry out your due diligence and fully understand the implications of such high leverage. Always check the bdswiss site to verify its allowance structure and check each instrument individually as there is variation here too.

Trading fees are competitive but vary depending on the type of account you open. Be sure when registering to select your base currency – either euros, US dollars, or the GB pound – and you can dodge currency conversion fees. Currently, there are three types of accounts – classic, VIP, and raw, which offer spreads from 0.0 pips (subject to a $5 commission) to 1.5.

The classic and VIP accounts are not charged for forex, commodity, or crypto pairs. However, they are charged a fixed commission for everything else, including shares and indices.

Bdswiss has combined the renowned swiss financial prowess with a powerful and easy to use trading platform. It’s little surprise their expansion has been so rapid as it rests on sound foundations. Given the number of awards it has won and the solid reputation it has earned, bdswiss looks well placed for even more significant growth.

Bdswiss advantages:

Permitted leverage of up to 1:500 subject to criteria

European traders can use high leverage with the mauritius regulator

A low minimum deposit of $100 USD

Robust foundations

Global coverage

Ability to trade forex and a range of CFD instruments

Opening an account is fast and easy

Free demo accounts

Customer support monday to friday

Forex educational resources, webinars, and courses

Trading signals

Base currencies are USD, EUR, and GBP

Metatrader 4/5, web-trader, app

(risk warning: your capital can be at risk)

2. Roboforex

Belize-based roboforex is probably best known outside of the trading world as the sponsorship partners of BMW M motorsport. The company was formed in 2009 and is IFSC (international financial services commission) of belize regulated. This accreditation provides for segregated trading accounts and negative balance protection. Roboforex is signed up to the financial commission’s compensation fund and provides execution quality certificates via verify my trade.

Since its inception, roboforex has been solidly focussed on using cutting edge technology to leverage its years of trading experience.

It operates globally and offers eight asset classes, leverage of up to 1:2000 regardless of account type, and more than 50 forex currency pairs.

Roboforex offers a range of five different account types with varying initial deposits ranging from $10 to $100 and varying degrees of leverage from 1:300 to 1:2000. So there’s a good chance you can track down an account that suits you. There are also ‘swap-free’ islamic and demo accounts available.

Trading is via the industry-standard metatrader, metatrader 4 and 5, ctrader, and the broker’s in-house R trader platform.

Because roboforex is overseas-based and regulated, they can offer an array of attractive bonuses and promotional offers. These offers vary from time to time. However, at the time of writing, their flagship offer was a prize giveaway with a total pot of a million dollars. The giveaway is to mark roboforex’s tenth year of trading. In addition to monthly prizes worth $100,000, in may 2021, there is to be a ‘grand prix giveaway’ which is worth an accumulated $300,000.

At the moment, there are these types of bonuses:

A $30 welcome bonus once your account has been verified

A 60% profit share bonus

A 120% bonus of your deposited amount.

Check the website for the terms and conditions.

As well as the attractive benefits above, roboforex scores as one of the best forex brokers with high leverage thanks to its commission structure. They charge zero commission on client trading accounts. As well as that, roboforex offers over 20 different ways to deposit funds, so you are unlikely to be stuck for a payment provider.

Withdrawals are easy too. Their system for withdrawals is automatic and can take as little as one minute to transfer, depending on your payment method. Varying withdrawal fees apply.

Roboforex advantages:

Tight spreads from 0.0 pips

High leverage for every customer

Fast order execution and ECN accounts

Four account currencies available

Micro accounts

Eight asset classes including forex, indices, stocks, cryptocurrencies, energy, metals, etfs, and soft commodities

Access to over 12,000 markets

Negative balance protection

24/7 multi-language customer support

Dedicated analytics app

Learning videos

Metatrader 4/5, ctrader, rtrader

(risk warning: your capital can be at risk)

3. Blackbull markets

Based in new zealand, hence the nice wordplay of blackbull, this international brokerage is a real electronic communication network (ECN). Founded in the year 2014, blackbull markets has dual accreditation. It’s licensed both by its domestic regulatory body, the new zealand financial markets authority, and in seychelles by their financial services authority.

Blackbull is headquartered in new zealand’s largest city, auckland, and has a support office in the malaysian capital city, kuala lumpur. Blackbull markets trades its more than 300 tradable instruments on the award-winning and industry-standard metatrader 4 and 5 platforms and web trader.

As arguably one of the best forex brokers with high leverage, the award-winning blackbull markets team gains this accolade thanks to a combined decade of experience in institutional forex trading. And this is reflected in the institution-class fintech service it offers its retail clients.

The minimum deposit to get started trading with blackbull markets is from $200, with leverage of 1:500, fast order execution, and customer support 24/5.

The lowest spreads available are from 0.1 pips but typically are in the region of 0.8 pips in their ECN standard type of account. Live spreads for the EUR/USD pair begin at 0.2 pips.

There are several account types available. Each is tailor-made to suit every forex trader, from complete beginners to veteran forex traders. Standard accounts accept deposits as low as $200, are commission-free, and give access to all of blackbull markets tradable instruments with low spreads.

Prime accounts, meanwhile, require a minimum initial deposit of $2,000 but offer a commission of $6 per lot on every $100,000 traded. Spreads start at 0.2 pips. It should be noted that blackbull markets charge overnight swap fees to keep positions open. For those of the muslim faith, there are swap-free islamic accounts. If you wish to test the water first, you can open a 30-day demo account simulator that’s pre-loaded with $100,000 of virtual cash for you to trade risk-free.

For their live accounts, you have the choice of depositing in nine currencies, including USD, EUR, AUD, and GBP. All payment methods are instantly processed, apart from bank transfers, which take between one to three days. You can only make a withdrawal via the method you used to pay initially. Withdrawal fees apply.

Advantages of blackbull markets:

More than 300 tradable instruments

Gold standard award-winning trading platforms

Extra tools such as zulutrade and myfxbook

Zero pip spreads available

Offers more than 60 forex pairs

Commission-free trading on some accounts

Maximum leverage of 1:500

Metatrader 4 and 5, plus a mobile app

Deposits accepted in nine currencies

Trading academy

Cross-platform trading

(risk warning: your capital can be at risk)

4. IC markets

Founded in 2007 in australia, IC markets is regulated by the ASIC (australian securities and investments commission). It also has overseas branches and is subject to regulation by the cysec (cyprus securities and exchange commission), and in seychelles by the financial supervisory authority (FSA).

Opening an IC markets account is fast and easy. You only need $200 as a minimum deposit. And you will also love those deposits, withdrawals, and inactivity incur no fees.

However, there is a $20 AUD charge for international bank transfers. Otherwise, moving your money in or out is free with most of the payment methods on offer. Getting an account approved typically only takes 24 hours on a business day. You will also be asked about your trading experience during the account setup process. There is also the option of opening a demo account to try out the platform.

There are three account types – raw spread (based on ctrader); raw spread (based on metatrader); and standard, which is also traded on metatrader.

The standard account comes with zero commission and spreads from 1.0. Both raw spread accounts offer pips of 0.0 but charge commission. The ctrader account charges $3 per $100,000 USD, while the metatrader version is subject to a commission of $3.50 (per lot per side).

Trading fees charged by IC markets are broadly speaking low and align closely to their main competitors.

What also sets IC markets apart as one of the best forex brokers with high leverage is the number of base currencies they can offer to clients. These are USD, GBP, EUR, AUD, NZD, JPY, CAD, HKD, SGD, and CHF. This is extremely useful if you have a multi-currency bank account with an internet bank. Or, if you wish to avoid conversion fees by funding your account in the currency of your existing bank account or trading assets in the currency you selected as your account’s base currency.

IC markets’ portfolio and fee reports are straightforward and transparent. It’s easy to view your profit and loss balance as well as the commission fees incurred.

Advantages of IC markets:

Low forex trading fees

Free deposit and withdrawal

ECN broker

Minimum $200 deposit

No inactivity fee

Supports ten base currencies

Three account types

Fast execution of orders

Offers sub-accounts in different base currencies

Uses metatrader 4 and 5, plus ctrader

Forex spreads starting from 0.0 pips

(risk warning: your capital can be at risk)

5. Vantage FX

Vantagefx was founded in australia in 2009 and said theirs is a dedicated ECN trading platform. It also offers online trading via metatrader, a mobile trading app, and social trading.

The vantage FX team, drawn from forex, finance, and technology backgrounds, are regulated by the australian securities and investments commission (ASIC). Their various branches around the world are regulated by financial regulatory bodies in the cayman islands, the UK, and vanuatu. The company uses a segregated bank account with tier-1 bank, national bank of australia, to hold client payments.

Vantage FX can lay claim to being among the best forex brokers with high leverage because of their background. They say it is because of their strong and diverse experience that they can offer class-leading access to global forex markets. They say retail and pro traders will notice a distinction when comparing vantage FX to other brokers they may have used in the past.

Vantage FX pitches three client account flavors suitable for all levels of trading experience. All are based on metatrader 4 and 5, offer 44 currency pairs, leverage up to 1:500, and nine base currencies.

The standard STP account is aimed at novice traders who want direct market access with zero commission and a low $200 minimum deposit. The minimum lot of trade size is 0.01, while the spreads start at 1.4.

The ECN-based accounts, raw ECN and pro ECN allow for 0.0 pips. The most popular of the two is raw ECN, as it requires only a minimum deposit of $500 to get started trading. The commission is charged from $3 per lot per side.

Meanwhile, the pro ECN account is firmly designed for high volume trade professionals and money managers. The minimum deposit is $20,000, with the commission payable being from $2 per lot per side.

Vantage FX offers a range of international and australia-only payment methods, including visa, JCB, china union pay, neteller, skrill, and fasapay. Most options involve no fees.

Their transparent forex market access and solid financial set up has understandably led to vantage FX being hailed as a secure and safe forex broker.

Advantages of vantagefx

50% welcome bonus on initial deposits up to $500

A minimum deposit of $200

0.0 spreads

Leverage up to 1:500

Free forex signals

Fast execution

Award-winning customer support

Negative balance protection

Spot FX and forex cfds

Volume commission rebates

(risk warning: your capital can be at risk)

What are high leverage forex brokers?

These brokers specialize in foreign exchange trades and use a system of leverage using borrowed money to bet on the direction of travel between currency pairs. For example, the USD against the euro. Or the GB pound against the japanese yen. The gearing effect that’s possible, generally 1:500, makes significant gains possible if the exchange rate moves in the predicted direction. If not, the losses can be substantial. However, almost all high leverage forex trading platforms have negative balance protection. So you won’t lose any more than the deposit you hold in your account.

What is 1:500 leverage?

Leverage is essentially a line of credit to trade on the foreign exchange markets. If a broker is offering leverage of 1:500, it means you can multiply your capital by 500. In other words, for every dollar of your trading capital, it is matched by $500 from the broker.

What is the best leverage ratio for novice traders?

As a novice trader, you should not be trading at more than 10:1 or 5:1. To be ultra-cautious, it’s better to stick with the leverage of 1:1 at the beginning. The most common rookie mistake of a new forex trader is to go too high with leverage. Play it safe until you have a comprehensive grasp of the subject and never trade with cash you can’t afford to lose.

Is high leverage forex trading risky?

The general consensus is that high leverage foreign exchange market trading is riskier. However, the potential rewards – and losses – are significantly more significant due to the multiplying effect. Some traders contend that by using only a level of leverage you are comfortable with, this form of trading can carry no more risk than other types. But, more importantly, it magnifies potential gains. It’s the classic half-full, half-empty argument.

Which are the best high leverage forex brokers?

The best ones are those that are regulated by a recognized financial regulatory body. They should also offer negative balance protection and be transparent about their commission fees and trading and non-trading charges. If you would like to get a proper handle on a particular platform, consider opening a demo account first. This will enable you to get some hands-on experience with virtual trading capital before committing yourself.

Final review of the best forex brokers with high leverage:

High leverage forex trading can be a success if you go about it the right way. As you can see from our review of the best forex brokers with high leverage, finding the right broker to suit should be easier than you imagine.

The top 5 forex brokers we highlight all share a strong commitment to helping their clients achieve their foreign exchange trading goals. These five are well-regulated and widely considered to be a safe harbor for trading.

There is much emphasis, too, on the fintech that underlies their platforms. There is a reliance on the industry-standard software metatrader 4 and 5, along with mobile apps and integration with social copy trading apps such as zulutrade and myfxbook, among others.

There is much evidence to conclude that the five forex brokers we have reviewed here are not prepared to rest on their laurels. There is a commitment to continue introducing the latest technology to execute orders as fast as possible and make their platforms intuitive and user-friendly.

As we have spotlighted, there is recognition of the need to cater to the diversity of traders, from beginners to seasoned veterans of forex trading. This is reflected not only in their tailor-made accounts with specific types of traders in mind but also in their desire to educate. Brokers like those we have reviewed spend much time, effort, and money on their educational resources. Not only is it in their interests to have an informed customer base, but it is also an acknowledgment that no matter how little or how much forex trading experience you have, there is always something new to learn.

With high leverage, you can use a bigger position sizes and suitable trading strategies.

So, let's see, what we have: investing with leverage makes it possible to make a large investment with a small amount of money. But how does trading with leverage work? At best leverage for $30