What factors do you pay the most attention to when looking for a high leverage forex broker? Some people will probably give more preference to brokers with high leverages.
As a trader, decent leverage allows you to take control of large trade sizes with minimal capital. High Leverage brokers understand this and have been using high leverages as a marketing tool to woe in investors and extend their competitive edge in the industry.
In this guide, we look at the best forex brokers with the most attractive leverages. We, however, start by looking at how it works and the criteria used to rank the best high leverage brokers.
Top Forex Brokers with High Leverage in 2021
You can read about the top high leverage forex brokers in more depth further down this guide, but if you’re looking for a quick summary, check out the list below.
- eToro – Best all round high leverage forex brokers with low fees
- Forex.com– Trusted and reputable broker with high leverage
- FBS – Up to 1:3000 forex leverage
- AvaTrade – Established broker with MT4/5
- CryptoRocket – Beginner-friendly high leverage forex broker
- PaxForex – Low spreads and trading fees
- Eagle FX – Wide range of forex pairs
- XM Global – Forex broker with 1:888 leverage
- InstaForex – Minimum deposit of just $1
- OctaFX – Supports a variety of trading platforms
- NordFX – Very competitive forex spreads
On this Page:
Our Recommended Stock Broker - 0% Fees
- 0% Commission on Stocks
- Trade Stocks, Forex, Crypto and more
- Only $200 Minimum Deposit
How Does Leverage Work?
Leverage is a form of investment loan given to an investor by the brokerage firm. It serves to inflate your trading account balances, making it possible to enter into larger trading positions with the hope of scoring higher returns. To access this loan, you will need first to open a margin account with your preferred broker. The leverage advanced is then expressed as 1:50, 1:100, 1:200, or 1:500.
But what does this mean? In the case of 1:200, it implies that for every one base currency you are willing to stake into a trade, the broker will loan you two hundred more. If you, therefore, wished to enter into a $200,000 trade, you would only need $1,000 in your trading account.
What are the pros and cons of using a Broker’s Leverage?
Pros Cons
eToro launched in 2007 and has, in the recent past, been feted for maintaining one of the most innovative and interactive trading platforms. It pioneered the integration of social trading and copy trading aspects of online brokerage. Today, it is hailed for hosting a significant number of financial instruments that include shares and stocks, commodities, forex, cryptocurrencies, indices, and ETFs. Virtually every retail trader with a standard account has access to attractive leverages that they can then use to enter into different positions. The broker, however, operates within the CFTC regulations that allow U.S residents to trade with maximum leverages of 1:50. Other eToro features that make it one of the best brokerages in the country include integration of highly advanced technical indicators, trading tools, and market research analysis tools within their platform. eToro is also accessible via the highly intuitive and user-friendly web trading and mobile platforms, it doesn’t charge trading commissions, and maintains ultra-tight spreads.
Forex.com features on this list majorly because of its relatively attractive leverage of 1:400. But we also liked the solid reputation of trust and reliability it has established over the years. Having been actively involved in the industry for close to two decades, Forex.com has morphed into a market leader and is dominating different aspects of forex trade. It, for instance, hosts one of the highest numbers of currency trading pairs (80+). It also has one of the most advanced and adaptive trading platforms, as well as the broadest collection of technical analysis and trade automation tools. In addition to this, the broker hosts a highly polished industry insiders and pro analysts. And they are constantly reviewing the markets and publishing actionable tips on possible market movements and price actions.
FBS maintains the highest leverage in the global forex trading industry – currently set at 1:3000. It also is one of the most versatile brokers we have come across with a unique approach to the industry. It also has a long list of trading account types, and each is specially designed to suit a particular class of traders. The most popular account type is the micro-lot trading (CENT) account for beginners, and the high-volume (ECN) account for scalpers. The broker further takes pride in hosting a huge collection of trading tools as well as highly effective automated trading systems. More importantly, forex transactions are commission-free while spreads range from 0.0 pips for the Zero-Spread trading account to 3.0 pips for least popular forex pairs
AvaTrade has an established presence in over 150 countries around the world. It is thus operated under the strict guidance of all major financial regulatory agencies in Europe, Canada, Japan, and Australia. This, plus the fact that it offers highly attractive leverages of up to 1:400 makes it a preferred broker for most international traders. Apart from the leverage, you will also be interested to note that the broker runs one of the most advanced and user-friendly trading platforms. Some key features availed by the broker include a professional in-house trading software, Forex APIs, and lucrative trading strategies – all of which are available freely on the site. Plus the broker is also one of the few that provides you with adjustable trading algorithms and Forex trading APIs that let you automate your trades from scratch.
CryptoRocket stands out from the competition in the industry because of its attractive leverage of up to 1:500. But we also like it because of its zero-fee policy on deposits. But these aren’t the only reasons the broker makes it here. Other unique features that drew us to the Forex CFD trader include the fact that it exposes you to over 55 Forex trading pairs. Plus their ultra-tight spreads and the highly advanced trading platform are available in both the web trader, P.C., and mobile apps.
PaxForex stands out with its non-discriminative and high leverage of 1:500. This is now available to all types of trading accounts availed by the acclaimed broker. In addition to the high leverage, there are several other reasons PaxForex tops our list of high leverage brokers. And we are especially drawn in by the fact that they maintain over five types of trading accounts. They also expose you to more than 20 trading pairs and maintains a highly affordable minimum deposit of $10. It also is compatible with the all-popular desktop and Mobile versions of the MetaTrader (MT4) platforms. Note that this attractive leverage is, however, capped at the CFTC recommended 1:50 ratio for their U.S. clients.
Eagle F.X. appeals most to experienced traders looking for an advanced platform that gives them access to huge investment opportunities and attractive leverage. The broker exposes you to over 53 forex trading pairs (including all the major currencies). And these can be executed with leverage of 1:500. Beginner traders looking to gain a deeper understanding of the Forex market can do so within the Eagle Fx demo account. It is free and has no limit to the amount of time or virtual currency you can spend there. Other factors that make it stand out from the competition, despite being a few months old, include its zero-fee approach to deposits and withdrawals. Plus the fact that you only need $10 to open a real trading account.
X.M. Global ranks highly on the list of the most reputable online trading brokerages. Here, traders are treated to highly attractive leverages of 1:888. Not to mention that they also offer one the broadest list of trading pairs and other financial investment products. And these can be executed within one of their several retail client trading accounts that cater to both the beginner and expert traders. Note, however, that the 1:888 leverage is only available to international traders operating outside the U.S. and Europe. X.M. isn’t available in the United States but operates through a Proxy – XM-UK in Europe. And in this FCA controlled financial district, leverage is capped at 1:30. Additionally, traders are treated to ultra-tight spreads of as low as 0.6 pips for all the major trading pairs. You might also be interested to note that all X.M. trading platforms are expert advisory friendly. You will also be treated to a 50%+20% bonus on your initial deposit upon verifying your trading account.
InstaForex is headquartered in Russia, making it one of the few most successful brokerages in Eastern Europe. It stands out because it supports huge leverage that currently stands at 1:1000 and an equally large number of currency trading pairs – including all the major currencies. Other factors ensuring InstaForex makes it to the list of the reputable high leverage brokerages include its near-instant customer support services. Plus, a wide range of technical analysis tools on an elaborate trading platform. Here, a client is also free to maintain up to three different trading accounts.
On paper, OctaFX has its leverage set at 1:500 for MT4 platform traders and 1:200 for the MT5 traders. And in a world where major Forex hubs are constantly coming up with regulations that seek to shrink leverages further, we consider this high and attractive. However, OctaFX is regularly holding promotions that allow traders from different parts of the world to adjust this leverage upwards manually. In most cases, MT4 traders leverage moves from the standard 1:500 to 1:1000, while leverage for MT5 trades moves from 1:200 to 1:500. In addition to this, we liked the superior social trading feature on their website that supports copy trading for beginners. Plus, the fact that the broker also operates the one-click trading feature that guarantees fast trade execution speeds.
NordFX also features on our list of high leverage brokers majorly because of its high leverage of 1:1000. But we are also impressed by the level of technology the broker has integrated into their trading platform. This is evidenced by the fact that Nord FX runs one of the most advanced trading platforms with sophisticated analysis tools, indicators, and trading strategies. It also takes pride in having one of the fastest payment processing systems that have resulted in minimal complaints. Major financial and forex trading districts like the U.S. and the E.U. may have come up with pieces of legislation aimed at capping leverages. However, there still are several highly reputable brokerages ready to give you attractive trading margins. These are regulated by highly reputable finance industry oversight agencies like Australia’s ASIC and Europe’s CySEC. Our Recommended Stock Broker - 0% Fees The trading platform fee refers to the amount a trader pays to use the platform and access its integrated platform features and tools. It can be a one –time fee paid for the acquisition of the trading platform, a subscription fee paid monthly or annually. Others will charge on a per-trade basis with a specific fee per trade.
Cost per trade is also referred to as the base trade fee and refers to the fee that a broker or trading platform charges you every time you place a trade. Some brokers offer volume discounts and charge a lower cost per trade for voluminous trades.
Margin is the money needed in your account to maintain a trade with leverage.
Social trading is a form of trading that allows for the interaction and exchange of trade ideas, signals and trade settings between the different classes of traders.
Copy trading, also known as mirror trading is a form of online trading that lets traders copy trade settings from one another. In most cases, it is the newbies and part-time traders that copy the positions of pro traders. The copiers -in most cases - are then required to surrender a share of the profits made from copied trades – averaging 20% - with the pro traders.
A Financial instrument ideally refers to the proof of ownership of financial commodities of monetary contracts between two parties. In the money markets, financial instruments refer to such elements as shares, stocks, bonds, Forex and crypto CFDs and other contractual obligations between different parties.
An index is an indicator that tracks and measures the performance of a security such as a stock or bond.
Commodities refer to raw materials used in the production and manufacturing of other products or agricultural products. Some of the most popular commodities traded on the exchange markets include energy and gases like oil, agricultural products like corn and coffee, and precious metals like gold and silver.
An ETF is a fund that can be traded on an exchange. The fund is a basket containing multiple securities such as stocks, bonds or even commodities. ETFs allow you to trade the basket without having to buy each security individually.
CFDs are a form of contractual trading that involves speculating on the performance of a particular trade in the market. CFD’s will basically allow you to speculate on the future value of securities such as stocks, currencies and commodities without owning the underlying securities. The minimum investment simply refers to the lowest amount of capital injection you can deposit into a brokerage or a trading platform. Different brokers demand varied minimum investment amounts from their clients either when registering or opening trade positions.
A daily trading limit is the lowest and highest amount that a security is allowed to fluctuate, in one trading session, at the exchange where it’s traded. Once a limit is reached, trading for that particular security is suspended until the next trading session. Daily trading limits are imposed by exchanges to protect investors from extreme price volatilities.
A day trader is a term used to describe a trader who is constantly opening trades and closing them within a day. It is a common term used to refer to forex traders who open trade and only hold onto it for a few minutes or hours before disposing and having to leave no open trades at the time the trading day closes.
Leverage refers to borrowed capital that forex broker advances a forex trader. The borrowed funds are used to amplify the trader’s account balance and enable him to open larger forex positions aimed at bringing in significant profits. Leverage capital is freely available with most trading brokerages. And all you need to do is create and verify a real trading account and also deposit the required minimum amounts.
Criteria used to rank the Best High-Leverage Brokers:
Best High Leverage Broker For 2021
1. eToro – Great for social networking and copy trading (1:400)
2. Forex.com – Best for longstanding reputation (1:400)
3. FBS – Best for High Leverages (1:3000)
4. AvaTrade – Best for Non-U.S investors (1:400)
5. Crypto Rocket – Best For Free deposits (1: 500)
6. PaxForex – Best for U.S Forex investors (1:500)
7. Eagle FX – Best for the High number of Forex Trading Pairs (1:500)
8. XM Global - Best for Account Management Support (1:888)
9. InstaForex – Best in Eastern Europe (1:1000)
10. OctaFX – Best for Social Trading (1:500)
11. NordFX – Best for versatile trading platforms (1:1000)
Bottom line
Your choice of a trading broker may, therefore, depend on such factors as your country of residence and leverages available. However, we advise that you look at more than just the high leverage. Be sure to review such other factors as customer support, trading costs, and the number of forex pairs available when deciding on the best trading broker. You will also do well to remember that high leverage is a double-edged sword. It helps you score unimaginable profits but can also wipe your account balances in a single trade.
Glossary of Trading Platforms
FAQs
No, several factors make it impossible to achieve standard leverage for forex trades. These include the lack of an international regulatory framework to control and guide the Forex industry. It is, therefore, upon each broker to exercise their discretion in setting up leverage ratios for the different trading accounts and currency pairs.
Yes, numerous brokerage firms support unleveraged Forex trades. However, this is the preserve of high capital traders. It is also important to note that you have absolute control over the leverage ratio you wish to draw into a specific trade.
Yes, automated trading systems, including expert advisory, can be used to enter into leveraged Forex positions. And you still get to control the leverage ratio used on every trade. You only have to set this up alongside other trade settings.
One of the biggest mistakes most newbie traders make is overexploiting the leverage. If possible, we advise that you consider avoiding the use of leveraged trades, especially if you are a relatively new trader operating a real account. And if you must use leverage, stick to the safe and relatively conservative 1:2 ratio. This doesn’t expose your capital to too much risk should you go wrong.
Yes, too much leverage that exposes your trades and capital to unnecessary risks is considered bad, especially when trading in a highly volatile market environment. Conservative leverage ratios are, on the other hand, considered good if they don’t place you and your trading account balances in harm’s way. There is, however, a thin line between good and bad leverages, given the highly volatile nature of the Forex industry. That’s why we advise traders to always vet the markets carefully before settling on a particular leverage ratio
There are two key reasons why anyone may consider using leverage in Forex trading. Key among them is the fact that it helps increase your trading account balances. It also increases your ability to score higher profits through large Forex trade positions.
There similarly are several downsides to entering into leveraged Forex trades. And they are the complete juxtaposition of the advantages of leveraged Forex trades. For starters, by inflating the trading balance, leveraged capital gives you a false sense of confidence that you may tempt you to enter into trades recklessly. Additionally, entering large trade positions has the unexpected impact of wiping out your trading account balances should the trades defy your predictions.
Reply