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Best 10 High Leverage Brokers For Forex Traders { 2019 Updated}

Last Updated: 04. October 2019
Best 10 High Leverage Brokers For Forex Traders { 2019 Updated}
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What factors do you pay most attention to when looking for a High Leverage brokers in Forex ? 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.

Note: Leverage allows you to take control of large trade positions with minimal capital. And with the right set of skills, strategy, and mindset, leverage will help amplify your gains. However, this works both ways. Just as it amplifies your gains, leverage also amplifies your losses. And the need to protect most Forex traders from these amplified losses forms the primary reason why some regulators capped the maximum leverage in their jurisdiction.

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

  • Provides you with additional albeit loaned trading capital
  • Helps you enter into larger trade positions that magnify your gains
  • The leveraged (loaned) trading capital is interest-free
  • Allows a trader to enter into any trade with low capital

Cons

  • Can easily wipe out your trading capital (staked amounts)
  • It exposes you to margin call risks
  • Higher leverages (free money) encourages reckless trading

Criteria used to rank the Best High-Leverage Brokers:

  • Amount of leverage advanced
  • Regulation and compliance
  • Spreads and additional charges or fees
  • Risk management tools available
  • Trade execution speeds
  • Customer support
  • Consumer experience
  • Number of Forex pairs available

Best High Leverage Broker For 2019

1. PaxForex – Best for U.S Forex investors (1:500)

PaxForex stands out with their 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.

Pros:

  • Charges attractively low spreads both fixed and floating
  • All trader accounts are commission-free
  • Offers you a variety of account types

Cons:

  • The broker is not regulated
  • Has a limited choice of trading platforms
2. AvaTrade – Best for Non-U.S investors (1:400)

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.

Pros:

  • Support a host of payment processing companies and free deposits and withdrawals
  • The advanced auto trading algorithms and APIs are availed to you free of charge
  • Exposes you to automated risk management tools like negative balance protection
  • Free training and access to Forex educational materials make it most appealing for beginner traders

Cons:

  • Doesn’t accept U.S clients
  • Consumers have often complained of delayed withdrawals – can take up to 10 days
3. Crypto Rocket – Best For Free deposits (1: 500)

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.

Pros:

  • Their straight-through trade execution eliminates slippage and requotes
  • Their trading platform comes with numerous advanced trading tools that appeal to both beginner and elite traders
  • It doesn’t charge transaction fees when live trading

Cons:

  • CryptoRocket is a non-regulated exchange
  • There are limited financial products you can trade here – mostly cryptocurrencies
4. Eagle FX – Best for the High number of Forex Trading Pairs (1:500)

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. Others 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.

Pros:

  • Available in both the web and mobile trading versions
  • Beginner-friendly as it supports social trading and copy trading
  • A low minimum deposit of $10 and high leverage that starts from 25:1 to 500:1

Cons:

  • Not regulated
  • Not available to U.S. clients

5. XM Global - Best for Account Management Support (1:888)

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. In addition, 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 50%+20% bonus on your initial deposit upon verifying your trading account.

Pros:

  • Every account is matched with a supportive account manager
  • Highly adaptive trading platform and a friendly user interface
  • Regulated in Europe, Canada, Australia, and the U.K.
  • Fastest trade execution speeds, eliminating requotes and slippage.

Cons:

  • Limited deposit and withdrawal options
6. Forex.com – Best for longstanding reputation (1:400)

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 has in its staff a host of 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.

Pros:

  • Have the web and mobile trading apps that allow you to trade on the go.
  • CFTC accepts U.S. clients
  • Supports both MT4 and NinjaTrader platforms
  • Beginner-friendly

Cons:

  • Huge spreads push up the trading costs
  • Maximum leverage is not uniform on all trades
7. InstaForex – Best in Eastern Europe (1:1000)

InstaForex is headquartered in Russia, making it one of the few most successful brokerages in Eastern Europe. It stands out because of its support for huge leverage that currently stands at 1:1000, and an equally large number of currency trading pairs – including all the major currencies.

Others 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.

Pros:

  • The broker supports both the MT4 and MT5 trading platforms
  • One-click trading technology guarantees fast trade execution
  • The low minimum deposit for real account – stands at $1

Cons:

  • Not available to both the U.S. and E.U. markets
  • Limited and relatively slow withdrawal options
8. FBS – Best for High Leverages (1:3000)

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.

Pros:

  • Hosts Sharia law compliant accounts for Islamic traders
  • Boasts of the highest leverage in the world
  • Advanced trading technology eliminates any incidences of slippage and requotes
  • Supports expert advisers and other automated trading tools

Cons:

  • Not available to U.S. residents
  • Poor risk management practices where some accounts, such as ECN, don’t have a stop-loss feature
9. OctaFX – Best for Social Trading (1:500)

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.

Pros:

  • No deposit or withdrawal fees
  • Beginner-friendly through social trading and educational resources
  • OctaFX supports multi-platform trading on MT4, MT5, Web and OctaFX app trading platforms.
  • Multilingual customer support

Cons:

  • Sluggish withdrawals
  • Limited payment processing options as it does not support debit and credit cards or PayPal
10. NordFX – Best for versatile trading platforms (1:1000)

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.

Pros:

  • Highly affordable spreads that start from 0.0 pips
  • Exposes you to different types of accounts that require low minimum deposit amounts – from $10
  • Stellar customer support team

Cons:

  • Limited number of forex trading pairs
  • Slow processing of withdrawals

Bottom line

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.
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.

FAQs

What is leverage and how does one qualify for one?

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.

 

Is there a standard leverage for different forex trades?

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.

 

Can I trade forex without leverage?

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.

 

Can I use leverage on automated trades or expert advisers?

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.

 

Is there a recommended leverage limit for beginner traders?

One of the biggest mistakes most newbie traders make is over exploiting 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.

 

Is there a good and bad leverage ratio when trading Forex?

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

 

Why should I consider using leverage on my Forex trades?

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.

 

Why should I not use leverage on my Forex trades?

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.

 

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, commodities, forex, indices, bonds, and cryptocurrency investments. She holds a Masters degree in Economics with years of experience as a banker-cum-investment analyst. She is currently the chief editor, learnbonds.com where she specializes in spotting investment opportunities in the emerging financial technology scene and coming up with practical strategies for their exploitation. She also helps her clients identify and take advantage of investment opportunities in the disruptive Fintech world.