Forex Brokers with High Leverage

Richard Montana | October 25, 2022

If you are thinking about trading online, you might have heard of leverage. There are many forex brokers with high leverage to choose from which can be an attractive proposition to beginners. However, there are some key pros and cons to be aware of before you consider opening a leveraged trading account. You want to be able to reach your trading potential, but do not want to risk more than necessary in the process.

What is leverage?

Leverage essentially enables you to trade with a position size larger than you would be able to otherwise. Think of it like using your account to borrow more capital from your broker so that you can increase the profit potential of your trades. Whilst more profit sounds tempting, you must also consider that leverage will also apply to your losses. Let me use a simple example to clarify for you.

You have a trading account balance of $1,000 with 1:100 leverage available from your broker. You could in theory open a position size of $100,000, the equivalent to one standard lot ($10) when trading forex. If price was to move 10 pips in your favour, you would make $100 ($10 x 10) minus any brokerage fees. If price was to move 10 pips against you, then you would be down $100 (plus fees) which would be 10% of your account balance.

You can see from this example above that leverage is a double-edged sword. Yes, you can make more if you are successful, but you can quite easily lose just as much if you are not careful. Thankfully, forex brokers provide features such as a stop loss to limit your losses. There are also brokers who provide negative balance protection so that you cannot lose more than you deposited in the first place.

What is the best leverage for trading forex?

There is no ideal leverage for trading as everyone is different. Many traders would not trade with leverage at all due to the additional risks involved. The forex market can move hundreds of pips in hours, which can cause significant gains and losses when trading with leverage positions.

However, it can be a useful tool when used sensibly by traders who may not have the initial capital to reach their financial goals. You should only ever trade with a level of leverage that you feel comfortable with.

Advantages of trading with high leverage

  • Trade larger positions sizes
  • Greater profit potential
  • Trading account can grow quicker

Disadvantages of trading with high leverage

  • Larger losses
  • Margin call, stop-outs and blown accounts
  • Often misused by inexperienced traders

What is a high leverage forex broker?

There are plenty of forex brokers that will be happy to provide you with high leverage as an incentive to choose them over others. These brokers can have leverage from 1:500 to 1:1000 and sometimes even above this. You will find that not many regulated brokers provide leverage that high. Therefore, you will need to weigh up the possibility of trading with high leverage vs safety.

Which forex broker has the highest leverage?

Here you will find a selection of forex brokers with high leverage from the hundreds that we have reviewed over the years. Keep in mind that your access to leverage can vary depending on your location, experience level and the broker entity that you sign up with. This is because some regulators impose restrictions on the amount of leverage that brokers can offer in order to protect clients from the dangers of high leverage.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
XM Group Review

ASIC, CySEC, DFSA, IFSC

$5

2009

1:888

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
IronFX Review

ASIC, CySEC, FCA

$50

2010

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
3.
FXGiants Review

ASIC, FCA

$100

2015

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
InstaForex Review

BVIFSC, CySEC, SVGFSA

$1

2007

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
5.
RoboForex Review

IFSC

$10

2009

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
FXPRIMUS Review

CySEC, FSCA, VFSC

$100

2009

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
7.
Traders Way Review

N/A

$10

2011

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
8.
Libertex Review

FSC

$100

1997

1:1000

Trading in financial instruments is a risky activity and can bring not only profits, but also losses.
9.
Bold Prime Review

FSC

$15

2020

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
10.
LMFX Review

N/A

$50

2015

1:1000

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Conclusion: should I trade forex with high leverage?

You are free to use any leverage that you want. Whilst many will advise against high leverage, there are still lots of forex brokers that will provide it to you. There are some positive aspects to trading with leverage but I think that it is important to have a clear understanding of what it is and how it works before you start. A demo trading account can be a good way to get a feel for trading with high leverage without actually risking any funds. This will help you to practice and see the pros/cons of leveraged trading for yourself.

About the Author

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Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.

Review Methodology

For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.


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