Higher leverage on retail investor accounts for up to 500:1 allow a forex trader to trade a multiple of their deposit on the movement of currency pairs with up to 500:1 leverage available on the highest leverage forex broker exposing a high level of risk and possible reward when CFDs forex trading.
The table below shows ASIC regulated brokers that offer high leverage trading accounts.
By Justin Grossbard / Updated: Tuesday, February 18th, 2020
The overall rating is based on review by our experts
10 / 10
10 / 10
9 / 10
3 / 10
Range of Markets
5 / 10
8 / 10
Leverage Offered By IC Markets
The table below compares the top Australian forex brokers leverage levels across a range of CFDs instruments. It highlights how IC Markets offers the highest leverage across:
Share CFDs Trading
IC Markets Leverage
IG Markets Leverage
CMC Markets Leverage
25:1 to 200:1
100:1 to 200:1
The only instruments which IC Markets has lower leverage levels are Index CFDs and Cryptocurrency trading. The leverage levels across these two instruments still remain high by international standards. The other forex broker that has almost identical leverage is Pepperstone except for in the UK as you can view on our Pepperstone Leverage page.
Can You Adjust IC Markets Leverage?
Yes, unlike some other Australian CFDs broker like Plus500 allows traders to adjust leverage after they open an account. This can be done in the ‘client area’ for live traders only.
What Risk Management Tools Does IC Markets Offer?
Since leverage has a high level of risk allowing traders to lose money when trading CFDs at an amplified rate IC Markets offers some tools. This includes stop-loss features including:
Equity Stop – to determine the percentage of the account a trader is willing to lose on a single trade (or make)
Chart Stop – to set on a chart when a trader should exit the market based on a profit or loss
Volatility Stop – this factors a currency pairs historical movements and exists based on pips
Time Stop – this creates a time limit if a currency pair is not moving within the timeframe set
IC Markets doesn’t offer negative balance protection. You can lose your money and this can exceed your deposit in extreme volatility markets. In normal market conditions though IC Markets has an automated stop out policy. This will exit a trader’s least profitable trade after equity is <50% of the IC Markets margin requirement.
Spreads Offered By IC Markets
There are three accounts offered by IC Markets. The first is the standard account where there are no commissions. The other two are raw accounts that have commissions but lower spreads. The difference between the two raw accounts is the forex trading platform they offer. Both offer high leverage of up to 500:1. These two forex platforms are discussed further down this page.
Below shows the spreads on the major currency pairs across the raw forex account vs standard forex account. The lower spreads associated with the raw spread account is why it’s popular for advanced and high-frequency traders. These traders often use automation such as EAs.
Below shows IC Markets Raw accounts to competitors including Pepperstone and IG. It highlights how IC Markets has some of the lowest spreads of the Australian forex brokers. It should be noted that competitor spread account commissions are near exactly the same as IC Markets.
Average Spreads (02/01/2020)
IC Markets Has No Additional Fees
Relative to competitive forex brokers IC Markets has very low additional fees. This means they have nominal charges outside of trading. This includes deposits with a number of options from bank transfer to credit cards incurring no charges. A second area that brokers like eToro charge relates to withdrawals. While these methods are limited (ideally paired to the way funds were deposited) there are no charges associated with them. Another area some forex broker charge fees when a broker is inactive for a set period. IC Markets has no such fees.
This platform is similar to MetaTrader 4 but more designed for CFDs trading including:
Share CFDs and other non-forex instruments
MQL5 Wizard and code to create robots for automation
Detachable tables and use of the NY4 server for speed
cTrader is designed for advanced traders with unique features through the London exchange including:
Fast execution speeds
Best charting packages including the ability to trade from charts
Range of CFDs market trading
Overall, having the choice of the three mainstream forex trading platforms is why IC Markets is one of the leading forex brokers. The high leverage of 500:1 is available across each forex platform. Each platform has the same fees, spreads and commissions. The only exception is for brokers who prefer a spread only account in which case only MetaTrader is offered for the standard account.
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 favour 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 quick time. 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 traders 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 an AFSL for High Leverage, Intermediate Traders
If a Forex broker does not have an Australian Financial Services Licence (AFSL) then they are not a regulated broker so we simply do not include them on our comparison tables. While some companies boast being regulated by more than one authority, the Australian regulator is the only one we take seriously and ALL traders should heed this advice. IC Markets is regulated and operates under AFSL number 335692.
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 a Forex trading Australia broker, please double check all information on the broker’s website.