Forex trading requires a forex broker offering leverage to trade using automation, copy trading strategies or when making manual trades. Our team in September 2023 found the highest leverage forex broker by each regulated region from 30:1 in Australia to 2000:1 in South Africa.
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Our list of the highest leverage forex broker by regulator is.
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
9.33 |
ASIC, FCA CySEC, DFSA |
1.12 | 1.69 | 1.22 | 0.10 | 0.60 | 0.30 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
8.50 | FMA, FSA | 1.20 | 1.4 | 1.7 | 0.23 | 0.72 | 0.65 | $3.00 |
|
|
|
72ms | $0 | 64+ | 11+ | 500:1 | 500:1 |
|
|
5.83 |
ASIC, CySEC, MAS FCA, FMA, DFSA EFSA, FSA, FSCA |
1.70 | 2.3 | 1.4 | - | - | - | - |
|
|
|
140ms | $100 | 71+ | 15+ | 30:1 | 300:1 |
|
|
6 |
FCA, FSCA, CySEC FSCM, CMA, |
1.9 | 2 | 2 | 0.0 | 0.0 | 0.5 | $2.00 |
|
|
|
160ms | $500 | 63+ | - | 30:1 | 300:1 |
|
|
7.67 |
FCA, FSCA ASIC, FSA-S, CySEC |
1.1 | 1.3 | 1.1 | 0.1 | 0.3 | 0.2 | $3.50 |
|
|
|
161ms | $0 | 46+ | 21+ | 30:1 | 500:1 |
|
|
4.83 |
DFSA, FCA ASIC, FMA |
1.2 | 1.3 | 1.3 | 0.44 | 0.85 | 0.42 | $3.50 |
|
|
|
90ms | $0 | 72+ | 11+ | 30:1 | 400:1 |
|
|
6.67 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
|
8.83 |
FCA, CIRO, ASIC MAS, JFSA, FSCM KNF, NFA/CFTC |
0.6 | 0.9 | 0.7 | - | - | - | - |
|
|
|
- | $0 | 70+ | 4+ |
|
||
|
7.28 |
FCA, CySEC, CIMA NFA/CFTC, CIRO, JFSA |
1.2 | 1.6 | 1.4 | - | - | - | $6.00 |
|
|
|
30 ms (May 2023) | $100 | 80+ | 8+ | 30:1 | 400:1 |
|
|
7 |
ASIC, FCA, CySEC FSCA, FSC BVI |
1.6 | 1.6 | 1.9 | - | - | - | - |
|
|
|
150ms | $100 | 54+ | 24+ | 30:1 | 300:1 |
|
Leverage involves borrowing capital to gain a larger exposure to the Foreign exchange market. With it, comes inherent risk as the more leverage you expose yourself to, the more you risk losing, potentially. Saying all that, we have come up with a list of the best high-leverage forex brokers, based on a series of trading factors.
The Best Australian High Leverage Broker
The best ASIC-regulated forex broker offering the maximum 30:1 leverage for trading forex is Pepperstone. This was based on comparing the top 2023 ASIC regulated brokers and focusing on currency pairs, spreads, commissions, and forex trading platform features. While a handful of forex brokers from IC Markets to CMC Markets also offered 30:1 leverage, it was these other criteria that led Pepperstone to be determined as the best.
| Instrument Traded | Pepperstone Leverage | IC Markets Leverage | IG Markets Leverage | CMC Markets Leverage | EasyMarkets Leverage | Plus500 Leverage |
|---|---|---|---|---|---|---|
| Forex (Major/Minors) | 30:1/20:1 | 30:1/20:1 | 30:1/20:1 | 30:1/20:1 | 30:1/20:1 | 30:1/20:1 |
| Major Index CFDs/Minor Index CFDs | 20:1/10:1 | 20:1/10:1 | 20:1/10:1 | 20:1/10:1 | 20:1/10:1 | 20:1/10:1 |
| Share CFDs | 5:1 | 5:1 | 5:1 | 5:1 | ✘ | 5:1 |
| Commodities/Gold | 10:1/20:1 | 10:1/20:1 | 10:1/20:1 |
10:1/20:1 | 10:1/20:1 | 10:1/20:1 |
| Cyptocurrency | 2:1 | 2:1 | 2:1 | 2:1 | 2:1 | 2:1 |
| Bonds | ✘ | 5:1 | ✘ | ✘ | ✘ | ✘ |
| Futures | ✘ | 5:1 | ✘ | ✘ | ✘ | ✘ |
| ETF | ✘ | ✘ | 5:1 | ✘ | ✘ | 5:1 |
| Treasuries | ✘ | ✘ | ✘ | 5:1 | ✘ | ✘ |
Why Pepperstone Is the Recommended High Leverage Forex Broker In Australia
In forex trading, high leverage means you have to put in a small amount of capital to open a position. This capital is referred to as margin requirements. Among the high leverage brokers in Australia, Pepperstone offers the most competitive leverage trading conditions:
Pepperstone Spread Comparison
Below compares the top currency pairs (forex pairs) Australian forex traders trade. It shows how Pepperstone has superior spreads across the most popular forex pairs.
|
Pepperstone 2023 Spreads
|
|||||
|---|---|---|---|---|---|
|
0.22 | 0.43 | 0.47 | 0.50 | 0.12 |
|
0.17 | 0.30 | 0.14 | 0.25 | 0.02 |
|
0.20 | 0.50 | 0.20 | 0.30 | 0.10 |
|
0.20 | N/A | 0.20 | 0.30 | 0.20 |
|
0.42 | 0.30 | 0.20 | 0.83 | 0.44 |
|
0.30 | 0.68 | 0.24 | N/A | 0.17 |
|
0.40 | 0.70 | 0.30 | 0.70 | 0.20 |
|
0.50 | 0.80 | 0.30 | 1.10 | 0.10 |
|
0.50 | 0.40 | n/a | 0.30 | n/a |
|
1.23 | 1.23 | 0.77 | 1.41 | 0.44 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
With a minimum deposit of USD 200, Pepperstone clients can control USD 100,000 in buying power.
Pepperstone Margin Calculator
Pepperstone offers a proprietary margin calculator that helps forex traders work out the margin required to open and hold a position. The margin calculator can be accessed directly from the Secure Client Area, under the Trading Tools tab.
The calculation of the initial margin requirements relies on 4 factors:
Negative Balance Protection
Pepperstone offers negative balance protection to help prevent losses exceeding a trader’s account balance. Pepperstone uses an automated stop-out policy with different stop-out levels depending on the platform used:
In theory, this should prevent incurring a negative balance. However, in volatile markets, you can still see your account balance dropping into negative territory. In this case, Pepperstone might wave negative balances “on a case by case basis.”
Verdict On Pepperstone For Australian High Leverage Traders
Pepperstone offers 30:1 leverage for forex trading which is the higher level of any ASIC-regulated forex broker. It also offers high leverage on other CFDs including indices, shares, commodities, and cryptocurrencies.
Pepperstone offers 30:1 leverage, low spreads and advanced tools.
With the best forex trading platforms offered from MetaTrader 4 to cTrader and fast execution speeds, Pepperstone is the best forex broker for scalping, intermediate or expert Australian forex traders in Australia.
View Pepperstone ReviewVisit Pepperstone
The Best High Leverage NZ Forex Broker
Blackbull Markets is a New Zealand broker that offers high leverage of 500:1. In New Zealand, the Financial Markets Authority (FMA) regulates brokers and financial markets.
Unlike countries like Australia (ASIC), Europe (CySEC), and the UK (FCA) where leverage caps of 30:1 are imposed, NZ forex brokers can offer significantly higher leverage to retail traders.
When trading with Blackbull, the leverage you can trade forex with depends on your equity balance. A tiered leverage system is in place:
ECN Trading Conditions
Blackbull is a popular high-leverage broker in NZ thanks to its institutional-grade trading conditions. With no dealing desk interference and execution powered by the Equinix Data Center, the broker provides an ECN-style trading environment.
You can choose from a range of account types that have different pricing structures and initial minimum deposit requirements.
For traders following Sharia Law, Blackbull offers a swap-free, Islamic account with either Standard or Prime pricing.
Blackbull Forex Trading Features
To supplement its competitive trading environment and pricing, the broker allows you to use MetaTrader 4 (MT4) or MetaTrader 5 (MT5). When trading on either platform, you can utilize the following trading tools and features:
Our Verdict On Blackbull As A NZ High Leverage Brokers
When trading with an FMA-regulated broker in New Zealand such as Blackbull, you can access high leverage of 500:1. Blackbull’s high forex leverage combined with excellent trading conditions and platforms makes the broker a great option for Kiwi traders.
The Best High Leverage Forex Broker in Singapore
Plus500 is a top broker regulated by the Monetary Authority of Singapore (MAS). In Singapore, MAS enforces leverage caps, with Plus500 able to offer a maximum of 20:1 when forex trading. The global broker is a market maker and therefore only offers one account type with no commission forex spreads.
To open a trading account with Plus500, you are required to make an initial minimum deposit of SGD $200. Once you’ve set up your account, you’ll be able to access the broker’s diverse selection of over 2,000 CFDs that covers seven different asset classes. Plus500 offers the maximum leverage permitted by MAS, yet leverage caps vary between asset classes.
Trading Forex and CFDs with Plus500
The broker’s proprietary platform is available as mobile apps for Apple and Android devices, as well as a desktop trading platform for Windows and a web trader platform via your browser.
Plus500 offers a range of risk management features ranging from guaranteed stop-loss orders (GSLOs) to negative balance protection. Additionally, various trading tools are free to use, such as customizable alerts, market news, economic calendar, and educational resources online.
Our Verdict On High Leverage Brokers in Singapore
Plus500 is one of Singapore’s most popular forex brokers thanks to being licensed and regulated by MAS, offering strong risk management tools and the maximum leverage available in Singapore (20:1).
To start trading leveraged products with Plus500, you will need to make an initial minimum deposit of $200 Singapore dollars. Free demo accounts are also available to practice trading strategies.
View Plus500 ReviewVisit Plus500
*Your capital is at risk ‘72% of retail CFD accounts lose money’
The Highest Dubai and UAE Forex Broker
Among the best Forex brokers under DFSA regulation, our team of industry experts recommends Axi (formally AxiTrader) for leverage trading. AxiCorp Financial Services Pty Ltd (DIFC) is an entity registered in Dubai and regulated by the DFSA.
Under current legislation by the Dubai Financial Services Authority (DFSA), the regulatory body that operates within the Dubai International Financial Center (DIFC), the maximum leverage for retail traders is limited to 1:50 on major currency pairs and 1:50 on minor and exotic forex pairs.
Best MT4 Trading Platform Solution
Axi’s MetaTrader 4 software is based on superior network technology, which significantly reduces latency and increases the broker’s system refresh speed. MetaTrader 4 trading platform’s real-time pricing enables Forex traders to closely track the movement of a particular market. The broker’s MT4 software comes with the following advantages:
With Axi, UAE-based retail clients can access the Forex market and other segments through two main account types – Standard and Pro Accounts, while there is no minimum deposit requirement. A comparison of trading conditions offered on both accounts is presented below.
Before they start trading on a live account, UAE-based retail clients can practice on a free, 30-day trial Demo account with $50,000 of virtual funds.
Axi UAE MetaTrader 4 Leverage Limits
Axi offers more than 100 financial instruments on its MetaTrader 4 platform, including:
UAE-based professional traders are granted access to considerably higher leverage ratios for CFD trading – up to 1:500.
Our Verdict On High Leverage Brokers in Dubai
Overall, UAE forex traders can find competitive leverage trading conditions with Axi. On the downside, the DFSA-regulated brokers aren’t mandated to provide negative balance protection. However, the Axi platform comes with advanced risk tools like guaranteed stop-loss orders to protect your bottom line.
The Highest Leverage Forex Broker Overall
The Financial Sector Conduct Authority (FSCA) is the South African regulator and allows brokers to offer the highest leverage worldwide. FXTM offers maximum leverage of 1:2000 which is four times higher than other tier-1 brokers around the world. HotForex is another high-margin FSCA broker with 1:1000 leverage. South African FSCA-regulated brokers can offer extremely high leverage similar to offshore jurisdictions like Mauritius (FSC) or Seychelles (FSA).
With FXTM, South African clients can select from three Standard accounts and three ECN accounts. The Standard accounts feature only a bid-ask spread and no trading commissions and are suitable for novice traders. The ECN accounts feature much lower bid-ask spreads, charge a small trading commission, and are suitable for experienced traders.
| Leverage | Standard Account | Cent Account | Stock CFD Account | ECN Account | ECN Zero Account | Pro Account |
|---|---|---|---|---|---|---|
| Maximum Leverage | 1:2000 | 1:2000 | 1:2000 | 1:2000 | 1:2000 | 1:200 |
| Minimum Deposit | $100 | $10 | $100 | $500 | $200 | $25,000 |
| Spreads from | 1.3 pips | 1.5 pips | 0.1 points | 0.1 pips | 0.1 pips | 1.5 pips |
| Commissions | 0% Commission | 0% Commission | 0% Commission | $4.0 round-turn | 0% Commission | 0% Commission |
| Trading Platform | MT4 | MT4 | MT4 | MT4 and MT5 | MT4 and MT5 | MT4 and MT5 |
| Margin Call | 80% | 80% | 80% | 80% | 80% | 80% |
| Stop Out | 50% | 50% | 50% | 50% | 50% | 50% |
FXTM Forex Leverage
South African retail traders have a choice of more than 63 major, minor and exotic pairs with flexible leverage from 1:1 to 1:2000 and trade size from USD 0.1 per pip (micro lots).
The leverage ratios available for exotic pairs are capped to lower limits as follows:
Additionally, FXTM offers a forex margin calculator, which is an essential risk management tool used to determine the appropriate position size.
Our Verdict On High Leverage Brokers in South Africa
Overall, trading forex with FXTM comes with the best margin-based leverage conditions. There is also a very low barrier to entry in the foreign exchange market with a minimum deposit of USD 10. From time to time South African traders can expect very “lucrative bonuses and promotions” that can boost their account balance.
The Best High Leverage UK Forex Broker
The best FCA-regulated UK high leverage forex broker is ThinkMarkets. It should be clarified that the Financial Conduct Authority (FCA) limits leverage for all retail traders including:
| Leverage | Retail | Pro |
|---|---|---|
| Forex - Major | 30:1 | 500:1 |
| Forex - Minor | 20:1 | 500:1 |
| Indices | 20:1 | 200:1 (South Africa Zar40 is 100:1) |
| Energy | 10:1 | 200:1 |
| Metals | 10:1 - 20:1 | 400:1 |
| Shares CFD | Mostly 5:1 | 10:1 to 20:1 |
| Futures | 10:1 | 33:1 to 200:1 |
ThinkMarkets offers the maximum FCA leverage and these features:
The broker also offers a free Demo Account, which can be configured either as a Standard Account or as a ThinkZero Account.
Retail vs Professional Clients Leverage Limits
ThinkMarkets’ CFD product offering includes more than 1,200 instruments, including:
The eligibility criteria for professional clients include:
Our Verdict On ThinkMarkets For UK High Leverage Trading
Overall, ThinkMarkets gives the best trading conditions for UK traders. The cost to start trading with ThinkMarkets is attractively low and suitable for beginners with a GBP 250 minimum deposit. Retail clients can also fund their live accounts using a crypto wallet BitPay which supports Bitcoin, Ether, and Bitcoin Cash.
The Highest Leverage EU Forex Broker
Markets.com is the best European high leverage CySEC regulated forex broker. They have a massive range of markets available to traders that is constantly expanding. Our experts have identified these to be some main features of the platform:
Markets.com spreads and products
Market.com offers a wide range of products in Europe and the UK. They are a market maker or dealing desk with no commission costs as they are integrated into the spreads. Despite this, they still have very competitive spreads, the below table shows selected live spreads we observed as part of our review. These spreads can change and may be higher at a different time but appear very competitive.
Along with competitive spreads, Markets.com offers an excellent choice of financial instruments for trading.
Markets.com Leverage
Markets.com leverage will depend on if you have a retail or professional trader. The highest leverage for a retail customer is 30:1 on major forex pairs and down to 2:1 on cryptocurrencies. For a professional trader, the highest leverage that can be utilized is 300:1 on major forex pairs and down to 10:1 on cryptocurrencies.
| Asset | FCA & CySEC retail (UK & Europe) | FCA & CySEC professional (UK & Europe) |
|---|---|---|
| Major Forex pairs | 30:1 | 300:1 |
| Minor and Exotic Forex Pairs | 20:1 | 300:1 |
| Major Indices | 20:1 | 200:1 |
| Non-Major Indices | 10:1 | 200:1 |
| Gold | 20:1 | 200:1 |
| Commodities | 10:1 | 150:1 |
| Equities | 5:1 | 10:1 |
| Cryptocurrencies | 2:1 | 10:1 |
Markets.com is regulated globally, but in Europe and the UK, they are regulated by two bodies that are a part of the European Securities and Markets Authority (ESMA). Financial Conduct Authority (FCA) if you are a UK customer and the CySEC (Cyprus Securities Exchange Commission (CySEC) if you are a European customer (not in the UK).
5 Trading platforms with Markets.com
Markets.com gives you a choice of 5 trading platforms for you to trade with. This includes:
Our Verdict On Markets.com For High Leverage Europe Trading
Overall Markets.com offers the maximum available leverage permitted by the regulator for traders based in the UK and Europe. Traders can choose from a wide range of trading platforms, each hosting a variety of unique trading tools to help you make the best decisions. Markets.com offers all the popular trading products each with competitive spreads that have no commissions.
A Good Margin Trading FX Broker With BaFin (Germany)
Among high leverage Forex brokers under the BaFin regulation we reviewed, IG appears to offer the best trading conditions. In Germany, the Federal Financial Supervisory Authority is the main regulatory body in charge of supervising all forex brokers.
By comparison with other EU financial services regulators (CySEC, FINMA and FCA), BaFin imposes more or less the same restrictions on leverage ratios. BaFin regulated Forex brokers are obligated to offer lower leverage ratios on CFD products for retail clients:
Below you can review BaFin’s restrictions on leverage ratio across different asset classes.
| Max Retail Leverage | Max Professional Leverage | |
|---|---|---|
| Forex - Majors | 1:30 | 1:222 |
| Forex - Minors | 1:20 | 1:222 |
| Cryptocurrency | 1:2 | 1:22 |
| Indices - Cash, Futures | 1:20 | 1:222 |
| Energies | 1:10 | 1:75 |
| Metals - Gold | 1:10 | 1:222 |
| Metals - Other | 1:10 | 1:55 |
| Base Metals | 1:10 | 1:27 |
| Soft Commodities | 1:10 | 1:75 |
| Shares CFD | 1:5 | 1:22 |
| Interest Rates | 1:5 | 1:435 |
| Sector | 1:10 | 1:10 |
| Bonds | 1:5 | 1:222 |
| ETFs | 1:5 | 1:100 |
IG CFD Trading Margins
IG is authorized to conduct online CFD trading business and is regulated in multiple jurisdictions worldwide, including the BaFin. With IG, retail traders can choose from over 17,000 financial instruments and need to ensure a minimum deposit of USD 300 or currency equivalent to start trading CFDs.
Leveraged products offered by IG Bank include:
IG offers individual tiered margin rates for each instrument traded, which is based on the number of contracts. IG offers four margin rate tiers, including preferential margin rates on their premium services. Please see the example below for how FX margins are calculated:
Our Verdict On High Leverage Forex Brokers in Germany
IG is the ultimate forex broker for trading leveraged products in Germany. Alongside finishing first in this category, IG is also the world’s biggest forex CFD provider with over 17,000 tradable instruments. IG minimum deposit is CHF 5,000, which can be deposited immediately via credit card.
A Top FX Broker In USA To Trade Leverage Products
Among US-regulated brokerages we reviewed, OANDA appears to be the most appropriate choice for forex trading. In the US, the Commodities & Futures Trading Commission (CFTC) is the main entity tasked to oversee all brokerage trading firms dealing in futures contracts, swaps, commodities, and Forex trading.
As per current NFA/CFTC rules, the maximum leverage allowed for retail Forex traders in the United States is:
Additionally, US residents can only trade with Forex brokers under NFA regulation and licensed by the CFTC.
Forex Trading
OANDA operates as a market maker broker, offering no commission forex trading. Forex spreads are competitive compared to other market makers with high leverage, starting from 1.1 pips commission-free.
The currency pair you are trading determines the maximum leverage OANDA provides. For instance, if you are developing trading strategies around the USD/CAD you can trade with the highest leverage available to US retail traders, being 50:1. Yet, fx pairs like the EUR/PLN, SGD/JPY, or GBP/NZD are capped at 20:1.
To reduce the high risk of trading with leverage, OANDA offers premium risk management features such as guaranteed stop-loss orders.
Our Verdict On High Leverage Forex Brokers in the US
Overall, OANDA is a global market leader in online trading. For certain major forex pairs, you’ll gain access to the highest leverage available in the US. Furthermore, you can also utilize risk management tools and features that will assist in mitigating the high risk of forex trading.
The Best Forex Broker In Canada With Gearing
Under current legislation by the Investment Industry Regulatory Organization of Canada (IIROC), the maximum leverage that Forex brokers are allowed to offer Canadian retail clients stands at 1:50 (or 2% margin required). The IIROC is Canada’s self-regulatory agency that oversees all Canadian forex brokers.
Unlike other regulatory bodies, IIROC imposes spot risk margin rates based on the underlying FX volatility. More the IIROC groups FX pairs into 4 groups based on some “quantitative and qualitative criteria” (see the table below).
| Leverage | Group 1 | Group 2 | Group 3 | Group 4 |
|---|---|---|---|---|
| Currencies | USD | AUD, EUR, YEN, ILS, MXN, NZD, NOK, SEK, CHF, GBP | CZK, DKK, HKD, HUF, MYR, PLN, SAR, SGD | ARS |
| Margin Rates for USD Accounts | N/A | 3% | 10% | 25% |
| Margin Rates for CAD Accounts | 1.60% | 3% | 10% | 25% |
Among IIROC-regulated brokers we reviewed, FOREX.com appears to be the most appropriate choice to trade Forex pairs with reasonable leverage trading conditions.
FOREX.com is a trading name of GAIN Capital Holdings Inc, a company established in 1999 in New Jersey, authorized and regulated in multiple jurisdictions, including IIROC, NFA and CFTC of the USA to name a few.
FOREX.com Account Types
FOREX.com offers two main account types – The Standard Account with a minimum deposit of $1,000 and the Direct Market Access Account with a minimum deposit of $25,000.
The DMA Account allows Canadian clients to:
FOREX.com Leverage and Margin Requirements
FOREX.com allows access to leverage trading on several markets, including:
| Number of Instruments | Margin Rates Range | |
|---|---|---|
| Forex | 84 | 3% - 28.7% |
| Indices | 18 | 14% - 15% |
| Shares | 220 (4 markets) | 20% - 50% |
| Commodities | 11 Futures 5 Spot |
Futures -5% to 44% Spot - 8% - 11% |
| Metals | 5 | 15% - 28% |
Orders-Aware Margining
In selected markets, FOREX.com offers lower margin requirements to maintain an open position. This is done through something called “orders-aware margining” which can be activated by attaching a stop-loss order on an open trade. On the downside, you should be aware that this feature is only available through the FOREX.com desktop platform.
Our Verdict On High Leverage Forex Brokers in Canada
Overall, FOREX.com ranks as the best brokerage trading firm offering high-leverage trading products. It’s safe to trade with FOREX.com and they only have low entry barriers with a minimum deposit of USD 100. US traders have multiple deposit and withdrawal options including debit cards, electronic bank transfer wire, checks, and eCheck.
Leverage allows forex traders to borrow funds from a broker increasing their exposure to the market. As currency pair movements are modest compared to shares, leverage is needed to make forex trading currencies worthwhile. While leverage increases the potential for profits, the same is true for losses. Based on this, currency traders should understand the risks of leverage, choose from one of the Trading Platforms and select the right leverage that aligns with their risk profile.
The main reason why leverage trading is so popular among retail investors is due to the increased potential to generate bigger profits. Leverage is good because you can trade larger positions and take advantage of the small change in the FX prices.
When you trade leverage products such as forex and CFDs, you don’t have to have the whole amount you’re buying and selling. Retail traders only need to deposit a small portion of the complete amount. This deposit is referred to as the initial margin. This margin is used to cover the possible losses that may incur.
For example, if a forex broker offers 30 times leverage (30:1 leverage ratio) and you want to buy 10,000 units of EUR/USD, you only need to put aside a margin requirement of around USD 380. That’s only a fraction of the total position value. With the highest leverage available (500:1) you would only need to put aside USD 20. So, with an initial investment of USD 20, you can control USD 10,000.
Leverage is a double-edged sword. It can significantly amplify a trade’s earning potential, but it also amplifies risk. Trading complex derivative instruments such as Contracts for Difference (CFDs) with relatively small amounts of capital by using high leverage ratios carries a high risk of losing money rapidly, especially in times of heightened market volatility.
Because of the higher leverage used, at times, retail investor losses can be of such proportions that they may lead to an occurrence, known as a “margin call”. What this means is a trader’s margin account value has dropped below the minimum maintenance margin required by his/her Forex broker. In such a case, the trader needs to deposit additional funds to bring his/her margin account up to the minimum value required.
Therefore, retail traders should tackle leverage carefully, by keeping an eye on position sizing and by using adequate risk management tools to safeguard their active trades against unexpected changes in market sentiment.
Choosing your broker
Until recently, there was great variation between the leverage brokers could offer. In the past, many brokers such as Pepperstone, IC Markets and FP Markets would offer the maximum permitted by the appropriate regulator. Regulators such as ASIC, FCA and CySEC would allow up to 500:1 leverage when trading for most forex pairs which are quite high so other brokers such as Plus500, IG Markets and easyMarkets would place a cap well below 500:1 on how much leverage is permitted.
Since then many major regulators have placed a limit on how much leverage can be offered. ASIC and European regulators such as FCA, CySEC and BaFin now restrict leverage. Major Forex Pairs can be up to 30:1, Minor pairs up to 20:1. Indices for Major pairs can be up to 20:1 and minor pairs up to 10:1. Commodities can be up to 10:1 except gold which allows a maximum of 20:1. Cryptocurrencies can be up to 2:1 and while shares and all other CFD products are 5:1.
As the maximum leverage is now relatively low (at least compared to in the past), you will find all brokers offer Australian and European traders the maximum permitted leverage.
Regulators Not Considered As Part Of This Broker Leverage Comparison
There are several lower-tier regulators worldwide that have relaxed requirements and safeguards for traders. These were not considered as it’s critical to choose a broker with a strong reputation trading with a higher margin. The main regulator not considered was FSA (St. Vincent & the Grenadines) which has Alpari which offers 1000:1. Brokers based in Seychelles were also not considered including JustForex which offers 2000:1. Finally, brokers in Belize (IFSC) such as FBS who offer 1000:1 were not considered. Some noticeable niche brokers that were discussed but could be considered are eToro for social trading and Markets.com for a dealing desk broker. These niche brokers can suit certain trading strategies and have platform features such as webtrader.
There are many regions traders may come from such as Nigeria which doesn’t have a regulatory body. Such traders should choose a broker that is regulated in a nearby country or a ‘tier 1’ region such as the UK. You can view our Nigerian forex brokers to see the list for his region. As a disclaimer, even choosing a regulated broker puts your capital at risk. Understand the risk warnings and remember that CFD uses complex instruments. It’s recommended to try a demo account before trading real money.
Why you might prefer high leverage
High Leverage, when used properly, can lead to extremely significant profits however if forex currency movements are not in your favor they can lead to significant losses. Currency movements whilst sometimes volatile don’t tend to change significantly from day to day the vast majority of the time. While sometimes a major event such as a political event might occur, which will see currency movements change significantly, this should be treated as an exception to the rule.
As changes in currency pairs tend to only be incremental, it can be difficult to generate significant profits in a quick time. The use of high leverage or high margin-based leverage can help to achieve this. High-margin trading can, therefore, be a useful tool in a skilled and experienced forex trader’s arsenal. High Leverage, however, is generally only recommended for experienced and intermediate traders, as the high risk can also mean substantial losses. Highly leveraged trading should, therefore, be used responsibly.
The Importance of Regulation for High Leverage Forex Brokers
If a Forex broker does not have a forex license, then they are not a regulated broker, so we simply do not include them on our comparison tables. While some companies boast of being regulated by more than one authority, only the tier-one regulatory bodies we take seriously and ALL traders should heed this advice.
Please be advised that all information found above is compiled manually and inaccuracies or errors may appear from time to time. Before deciding to select high leverage brokers, please double-check all information on the broker’s website.
What Broker Has The Highest Leverage
FXTM leverage is up to 1:2000 which is the highest of any regulated broker however do note this is only available with the South African and Seychelles (offshore) subsidiaries. It is a similar story with HFM who also have 1:2000. This leverage is only offered through their FSCA (South Africa) entity with traders in Australia recommended considering Pepperstone while UK traders should consider ThinkMarkets. Below shows our best leverage table by region:
| Forex Brokers | Margin | Regulation | Broker rating |
|---|---|---|---|
| Pepperstone | 1:30 Leverage | Australia | 9.17 |
| BlackBull | 1:500 Leverage | New Zealand | 8.17 |
| Plus500 | 1:20 Leverage | Singapore | 6.17 |
| AxiTrader |
1:50 Leverage | UAE | 4.83 |
| FXTM | 1:2000 Leverage | South Africa | 7.17 |
| ThinkMarkets | 1:30 Leverage | United Kingdom | 7.67 |
| IC Markets | 1:30 Leverage | Europe | 8.83 |
| IG Markets | 1:30 Leverage | German | 6.17 |
| Oanda | 1:50 Leverage | USA | 5.00 |
| Forex.com | 1:50 Leverage | Canada | 6.67 |
Some financial regulators of a country place limits on the maximum leverage a broker can offer. This is why European countries such as the UK, Germany, Switzerland, and Cyrus can only offer a maximum leverage of 1:30 for major forex pairs and 1:20 for minors and exotics.
Other countries are strict but not as strict when it comes to regulation. Canada, Singapore, and the UAE all leverage up to 1:50. Lastly, some regulators of a country’s financial market don’t place any limits on the maxim leverage. New Zealand allows leverage up to 1:500 and FXT< in South Africa allows leverage of 1:2000. The leverage of 1:200 with FXTM however is slightly deceptive trading with this leverage is limited to nano lots, being a cent account, the high leverage is necessary to achieve decent profits when trading.
Ask an Expert
Is high leverage good?
Leverage in forex trading is the process of using your existing capital to borrow capital so you can trade with higher amounts. It is sometimes called margin trading or financial gearing.
High leverage trading means you borrow a higher ratio to the amount compared to how you deposit in your trading account. Leverage of 1:500 or 500:1 means you borrow $500 for every $1 you deposit.
Since Forex is highly volatile, leverage can be seen as a good and bad thing since favorable forex movements really can increase your profits while unfavorable movements can result in crippling losses.
For this reason high leverage which many financial regulators consider to be leverage greater than 1:30 is only recommended for experienced traders. It is not recommended for new traders or risk averse traders.
A good broker with high leverage is Blackbull markets which offer 1:500
I’m located in Malaysia and noticed that there are no locally regulated CFD brokers. What broker do you recommend for high leverage and where are they regulated?
Hi Huey, that is not exactly correct, the Securities Commission in Malaysia (SCM) and the Labuan Financial Services Authority (LFSA) are recognised regulators of forex brokers in Malaysia. Malaysian traders can use brokers regulated with the SCM or offshore brokers. The Financial Markets Act has a section that recognises “foreign supervisory authority” which means they allow offshore brokers provided they have a local registration and are regulated in other countries.
Who decides on how much leverage the brokers can offer?
The brokers can decide how much leverage they offer for each trading instrument but they cannot exceed the maximum permitted for the country they are regulated in. For example – ASIC is the financial regulator in Australia. This means for the broker to legally offer trading services in Australia, then the country or one of their subsidiaries must be operating in Australia with an ASIC trading licence. ASIC allow up to 30:1 to retails for major currency pair meaning the brokers Australian subsidiary cannot offer more than 30:1 but they could offer less.
which high leverage broker is the cheapest to use?
If you find an account with commissions, that would suggest the broker is using Straight through processing (STP). These accounts have the tightest spreads. Look at brokers like Pepperstone, IC Markets, Eightcap. Go Markets and Fusion Markets however do have lower commissions.