Which are the best Forex brokers with the highest leverage?
After having tested and analyzed numerous online brokers, in the next directory you can find the brokers that we consider most recommended to open an account and trade in the market, taking as a criterion the financial leverage they offer. Keep in mind that the maximum leverage level indicated may be available only for certain investment instruments and in certain trading accounts of each broker.
| Broker | Regulation | Trading Instruments | Minimum Spreads (EUR/USD) | Minimum Deposit | Broker Review |
|---|---|---|---|---|---|
XM | CySEC | -Forex -Commodities -CFD | From 1 pip in Micro and Standard accounts (Average 1.6 pips) and from 0.6 pips in Ultra Low account | $5 | Review |
XTB | FCA | -Forex -Commodities -CFD | From 0.9 pips for Standard accounts. From 0.28 pips for Pro accounts with commission per lot traded. | $250 | Review |
FPMarkets | ASIC | -Forex -Commodities -CFD -Stocks | From 1 pip in Standard accounts and from 0.0 pips in Raw accounts | $200 | Review |
HotForex | CySEC and FSB | -Forex -Commodities -CFD | From 1 pip in Micro and Premium accounts and from 0.0 pips in Zero Spread accounts | $5 | Review |
HYCM | FCA CySEC | -Forex -Commodities -CFD | From 1.8 pips in the Fixed and Classic accounts and from 0.2 pips in the Raw accounts | $250 | Review |
Axitrader | ASIC and FCA | -Forex -Commodities -CFD | From 1 pip in Standard MT4 accounts and from 0.0 pips in MT4 Pro accounts | $10 | Review |
RoboForex | CySEC | -Forex -Commodities -CFD | From 1.3 pips in the Pro-Cent and Pro-Standard accounts and from 0.0 pips in the ECN Pro accounts | $10 | Review |
Alpari | - | -Forex -Commodities -CFD | From 0.2 pips in all trading accounts, including their ECN accounts. | $10 | Review |
BlackBull Markets | FSRP | -Forex -Commodities -CFD | From 0.8 pips in your Standard ECN accounts and from 0.0 pips in the ECN Institutional accounts. | $200 | Review |
ICMarkets | ASIC | -Forex -Commodities -CFD | From 1.0 pips in Standard accounts and from 0.0 pips in Raw Spread accounts (ECN accounts). | $200 | Review |
Pepperstone | ASIC | -Forex -Commodities -CFD | From 1.0 pips in Standard accounts and from 0.0 pips in Razor accounts | $200 | Review |
ForexTime | CySEC IFSC | -Forex -Commodities -CFD | From 1.5 pips in Cent Account, from 1.3 in Standard account and from 0.1 pips in ECN accounts | $5 | Review |
ThinkMarkets | ASIC and FCA | -Forex -Commodities -CFD | From 0.5 pips From 0.4 pips in Standard Account and from 0.1 pips in Pro Account with commission of $2.50 per lot operated (round trip $ 5). | $200 | Review |
FXPrimus | CySEC | -Forex -Commodities -CFD | From 0.4 pips on average in ECN Premier account (commission of 1 pip per lot). | $200 | Review |
FXOpen | FCA ASIC | -Forex -Commodities -CFD | Spreads: From 0.5 pips From 0.1 pips in ECN trading accounts | $1 | Review |
FBS | CySEC IFSC | -Forex -Commodities -CFD | From 3.0 pips in Micro accounts and from 0.0 pips in ECN accounts. | $1 | Review |
Forex4you | - | -Forex -Commodities -CFD | Spreads: From 0.5 pips From 2.0 pips in Classic accounts and from 0.1 pips in Pro STP accounts. | $10 | Review |
UPDATE: The new regulations on leveraged trading approved by the European Securities and Markets Authority (ESMA) that entered into force on August 1, 2018 limit the leverage available to retail customers of brokers based in the European Union. The maximum available leverage varies between 1:2 and 1:30 depending on the volatility of the underlying asset:
- 1:30 for the main currency pairs.
- 1:20 for secondary currency pairs, gold, and major indices.
- 1:10 for commodities other than gold and for secondary indexes.
- 1: 5 for stocks and other assets.
- 1: 2 for cryptocurrencies.
These limits do not affect professional clients or brokers operating from countries outside the European Union.
What is the leverage?
Leverage is the financial term that refers to the relationship between equity and credit obtained when making an investment. It is a concept that is directly related to the use of debt to finance an investment operation. Through leverage, the investor deposits an amount as collateral and the broker offers a proportionally greater amount of funds as a loan so that you can open positions with a much larger volume than you could do only with your capital. The objective of using financial leverage is to multiply the profits in absolute terms since the same profitability obtained in the trade is applied to greater capital.
What are the advantages and disadvantages of leverage?
With leverage, it is possible to open positions of a much larger volume than with the amount of money you have available in your trading account. It is one of the most important tools, both in the Forex market and when investing with CFDs, because it is practically impossible to obtain significant benefits without it: without investment with a considerable volume, it is difficult to obtain an acceptable benefit in the short term, since a trade needs to develop more based on a greater market fluctuation. In other words, the movements in the short term are very small, so it is necessary to invest more sums of money.
But you should keep in mind that leverage is a double-edged sword in turn: High leverage will allow you to obtain significant benefits if everything goes in your favor since you are trading in the market with a much higher amount than what you deposit. Therefore, the profits that you are going to collect are those of the total trade and not those generated only with your capital. On the other hand, this capital increase also increases the risks considerably and you are exposed to greater losses if you do not succeed and the trades move against you.
For example, a leverage of 1:20 means that for every dollar you put as a collateral of your own capital, you can open a position in the market for a total of 20 dollars (if the initial margin is 100 USD as collateral, you can open a position of 2,000 USD). In this case, the percentage of the trader’s own capital to be invested in the trade is 5%.
The risk level is higher the lower this percentage because we are trading with higher leverage. For example, in the case of a 1:30 leverage, the equity percentage invested by the trader is 3.33%. On the other hand, in 1:5 leverage, it is 20%. Also, the ability to obtain benefits is greatly reduced when we trade with less leverage. That is the higher the leverage, the greater the risk; but also the potential gains.
It is important that you understand the risks; and, if you are a beginner, do not be seduced by high levels of maximum leverage, since they can lead to greater losses and indebtedness. Act with caution and choose to increase leverage gradually, once you gain more knowledge and experience when trading.
Until recently, there were online brokers in Europe that offered maximum leverage levels of 1:200, 1:500, or even 1:2000. Following the latest regulatory changes, this level has been greatly limited for retail clients up to a maximum of 1:30 to trade with the main currency pairs of the Forex market (and even lower in the case of more volatile financial instruments). Outside Europe, the permitted level of leverage is higher. In the United States, the regulation of the CFTC (Commodities Futures Trading Commission) prevents the use of leverage greater than 1:50. As a general rule, you can choose the one you think is most convenient, as well as change it according to your needs.