List of Top Forex Brokers with High Leverage
Best brokers for US traders
Best brokers for international traders
Please note that trading with leverage above 1:30, especially for novice traders, bears considerable risk.
*The Commodity Futures Trading Commission (CFTC) limits leverage available to retail spot forex traders in the United States to 1:50 on major currency pairs and 1:20 for all others. In the case of forex futures, the level of margin and corresponding leverage is set by the Chicago Mercantile Exchange (CME).
Where can you find the highest leverage in forex trading?
In Europe, retail traders face a 1:30 leverage cap to mitigate risk, while offshore brokers can offer riskier leverage up to 1:2000, often with weaker safeguards. Professional traders in Europe can access up to 1:500 leverage, though without features like negative balance protection. To be designated as a professional, a trader must show significant trading experience, consistent high-volume trading (1 lot or more), and the ability to comfortably invest large sums.
This article will delve into the best brokers for high-leverage trading, highlight the pros and cons of our top picks, and discuss risk management measures each broker offers, all while demonstrating how to effectively utilize high leverage in your trading strategy.
How Did FX Empire Choose the Best High Leverage Forex Brokers?
- Leverage. We only selected brokers that afford leverage for retail traders of at least 1:1000, so that they can implement high-volatility strategies.
- Regulation. Since high leverage is needed for highly speculative trading, we only considered brokers that are regulated and adhere to industry standards.
- Competitive pricing. We measured spreads and commissions and compared them to the industry average to ensure our picks for each category afford competitive pricing.
- Available platforms. We checked the usability of brokers’ platforms and made sure they were practical and user-friendly.
- Risk management tools. We considered whether a broker has negative balance protection and assessed its margin call and stop-out levels to confirm traders have the tools for managing their market exposure.
- Diverse account types. We selected brokers that offer diverse account types with varied pricing and execution mechanisms serving different types of traders.
- Range of markets. We only considered brokers that offer a range of instruments from major asset classes, such as FX pairs, commodities, CFD shares, and indices.
- Scope of supporting content. We verified whether a broker provides comprehensive research content, such as a nuanced overview of current market developments, including where the market is headed and why.
Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.
Now let’s dive into the selected brokers.
How to Choose a Forex Broker With High Leverage?
Now it is time to outline the specific considerations traders need to make when looking for a trustworthy partner.
How to find a safe broker?
In order to make sure you are dealing with a trustworthy partner, you need to make sure that the broker entity you choose is tightly regulated and complies with all industry safety requirements.
I have broken down the most important safety mechanisms to look for in a broker below:
- Segregation of client funds. Brokers must keep their clients’ funds in separate bank accounts from the ones used for their corporate capital. This is crucial for mitigating the risk of accounting errors.
- Negative balance protection. Negative balance protection means that a trader’s losses cannot exceed their account balance. This protection is indispensable when trading high-risk instruments, such as Contracts for Difference (CFDs).
- Limited market exposure. Beginners are especially susceptible to the risk of adverse price fluctuations, which is why the maximum leverage for retail traders is recommended to be at 1:30. Anything beyond that can be too risky for inexperienced traders.
- Compensation scheme. Depending on the jurisdiction where a broker is situated, a compensation scheme may also protect its clients against the company’s credit risk and liabilities. For instance, brokers regulated by CySEC participate in the Investor Compensation Fund (ICF). In the unlikely event of the company becoming insolvent, traders can be compensated by up to 20,000 EUR. The Financial Services Compensation Scheme (FSCS) – under FCA UK – protects traders by up to 85,000 GBP.
Generally, offshore regulators offer higher leverage but weaker overall protections. In contrast, top-tier regulators seek to limit the maximum market exposure afforded to traders via leverage by capping it.
Read more about Best regulated forex brokers.
How to verify if a broker is regulated?
- Check the Broker’s Website: Legitimate, regulated brokers typically display their license number and the name of their regulator on their website, often in the footer or “About Us” section.
- Visit the Regulator’s Website: Every country’s financial regulator has a website where they list all the brokers they regulate. Search for the broker’s name to see if they’re listed.
- Contact the Regulator: If you can’t find the information you’re looking for, you can directly contact the regulator with the broker’s name and any other identifying information you have.
- Check for Memberships: Regulated brokers often belong to compensation schemes or organizations that protect clients’ funds. Check if the broker mentions such memberships on their website.
Check out our guides on Best CySEC-regulated forex brokers and Best ASIC-regulated forex brokers.
How to check if a broker’s fees are competitive?
A broker may have several account types, each with different pricing mechanisms and tailored to a particular style of trading. Below, I provide an example of STP and ECN accounts.
The biggest difference between STP and ECN accounts, apart from the execution model, is the pricing mechanism. Usually, STP accounts afford commission-free trading and floating spreads, whereas ECN accounts have fixed commissions and raw spreads (typically starting from 0.1 pips). At first glance, the former sounds more favorable because you only have to pay one cost – the spread – rather than two.
Read more about Best STP forex brokers and Best ECN forex brokers.
Many brokers recognize the psychological significance of this sort of thinking and seek to exploit it by raising the spreads on their STP accounts to the point where they are no longer the more competitive option. I will now demonstrate how to do a quick test for yourself to evaluate the competitiveness of a broker’s ECN and STP accounts.
Pick an instrument, say, the EURUSD. Suppose also that the spread on the pair is 0.9 pips on a broker’s STP account and 0.1 pips on its ECN account. There is also a $6 commission for trading 1 lot (100,000 units) contract. If the EURUSD pip value is $10, you can do a simple calculation to determine the value of a hypothetical position on the EURUSD executed on both account types. The formula is the value of a trade = spread x pip value + commission. When we pop in the above values, this is what we discover about our hypothetical broker:
| Account Type | Spread | Commission | Net Cost |
| STP | 0.9 pips | $0 | $9 |
| ECN | 0.1 pips | $6 | $7 |
This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.
Read more about Best lowest spread forex brokers.
How to choose a trading platform?
A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on to gauge the most favorable times to enter or exit the market.
The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They are also the ones that allow you to easily scale price action up and down.
In addition to these components, when looking for a suitable platform, you must also look for efficiency. Ask yourself: Does the platform facilitate easy and rapid order placement through one-click trading? Does it support algorithmic trading via Expert Advisors (EAs)? Can it handle market, limit, and stop orders? These factors, and more, contribute to a platform’s overall effectiveness.
Check out our dedicated guide on Best forex trading platforms.
The two most popular retail platforms in the industry are MetaTrader 4 and MetaTrader 5. Over the years, the two have become the benchmark for simplicity and reliability. The two entries in the popular franchise have a decent range of technical indicators and drawing tools and afford multi-timeframe analysis.
However, despite MetaTrader’s easy learning curve, its rugged design becomes apparent when contrasted against newer and sleeker platforms. In my estimation, MetaTrader could be a good choice for newbies wanting to learn the ropes, but to take your trading to take it to the next level, you may need something more sophisticated.
The answer of some brokers is to develop their proprietary platforms. The advantage of most such platforms is their convenience. The ability to search for instruments by asset class, scale price action up and down with ease, or execute complex box orders are benefits you cannot find in MetaTrader. To summarise, the question of choosing the best platform for you is one of simplicity vs practicality.
Read more about best MT4 brokersand best MT5 brokers.
What are the dangers of using high leverage?
- Amplified Losses: Leverage can increase the size of potential profits, but it also magnifies the potential losses. A slight fluctuation in the market can lead to substantial losses when high leverage is involved.
- Margin Call Risk: If your investment moves in the wrong direction, you could lose your entire initial deposit (margin) and be required to deposit additional funds to maintain your position.
- Overtrading: High leverage can encourage overtrading. Because of the small initial deposit requirement, traders might be tempted to open larger positions or more trades than they would with their own capital alone, increasing the risk.
- Fast Market Action: Markets can sometimes move very quickly, and high leverage can mean that these rapid changes have a more significant impact on your account.
- Risk of Account Blowup: With high leverage, there’s a higher risk of losing all of the capital in your trading account within a very short time, particularly if the market is very volatile.
- Negative Balance: If the market moves against your position, you may end up owing more than you initially invested, leading to a negative balance.
What to Avoid When Choosing a Forex Broker?
Here is a quick rundown of what to avoid when choosing a broker offering high leverage:
- Unregulated Brokers: Trading with them carries a high fraud risk and lacks regulatory protection, offering no legal recourse or compensation if disputes arise or bankruptcy occurs.
- Brokers Lacking Deep Liquidity: Essential for high-leverage precision trading, poor liquidity increases the risk of negative slippage.
- Brokers with Stop-Out Levels Above 50%: Higher levels can increase the risk of premature position closures.
- STP Accounts with Spreads Over 1.8 Pips: Accounts with floating spreads starting from 1.8 pips or higher can affect trading cost efficiency.
- ECN Accounts with Commissions Over $7: High round-turn commissions can significantly impact the cost of trading.
Our Methodology
Here at FX Empire, we have pioneered a unique methodology for evaluating forex and CFD brokers worldwide. Understanding traders’ goals and needs, our aim is to provide a comprehensive picture of a broker’s pros and cons so that our readers can make informed decisions and choose the best partner for their trading journey.
Our team of dedicated professionals is working continuously to improve our review system and keep it up-to-date with current market trends. We systematically conduct hands-on tests of each broker by employing over 250 variables across nine categories:
- Trust
- Fees
- Account Types
- Tradable Instruments
- Platforms and Tools
- Deposits and Withdrawals
- Customer Support
- Research
- Education
We strive to be as objective as possible, which is why our rigorous examinations are devoid of any personal bias as much as possible. We review the licenses of all the subsidiaries of a broker and check the fine print in the Client Agreement. The reliability of a broker is further determined based on the website’s regulations, fees, and general transparency.
We collect essential information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average.
We also test the functionality of the available trading platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.
For this article, we only considered high-scored brokers that offer high maximum leverage (at least 1:1000) to retail and professional traders. We looked for essential safety mechanisms, such as negative balance protection, segregation of client funds, and a compensation scheme. Additionally, we took into consideration brokers’ margin policies and stop-out levels, which are important for managing the risks from your market exposure. Considering various traders’ needs and levels of experience, we broke down our picks into different categories.
We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.
Meet Our Writers
The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.
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FAQ
What is leverage in forex trading?
Leverage in forex trading refers to the use of borrowed funds to increase potential returns on investment. It allows traders to control a large amount of money using relatively little of their own capital, and the rest is borrowed from the broker.
What does high leverage mean?
High leverage in trading refers to the situation where a trader can control a large amount of money using only a small amount of their own funds, with the rest borrowed from their broker. For example, a leverage ratio of 1:500 means that for every dollar in a trader's account, they can trade $500 on the forex market. A leverage ratio of 1:1000, which is considered very high, means a trader can trade $1000 for every dollar in their account.
What are the potential benefits and risks associated with using high leverage in trading?
The advantage of high leverage is that it can significantly amplify profits if a trade is successful. However, the downside is equally significant. If the market moves against the trader, losses can be substantial and even exceed the initial deposit, which is why high leverage is often associated with high risk. It's vital for traders to understand and manage these risks appropriately when using high leverage.
How does leverage affect the size of my trading position?
Leverage directly influences the size of your trading position by allowing you to control a larger amount of money with a smaller initial deposit. You decide the size of your position, but the higher leverage you use, the bigger the impact of even small price changes on your used margin.
Can I adjust my leverage level once I've opened a position?
Generally, once you've opened a position with a specific leverage level, you can't change the leverage of that particular position. The leverage ratio is fixed at the time the position is opened. However, you can usually change the leverage level for future trades in your account settings, depending on your broker's policies. This means that if you want to use a different leverage ratio, you would need to apply it to a new trade.
What is margin?
In financial trading, margin refers to the initial amount of money required to open a leveraged position or a trade that's larger than the amount of money in the trader's account. For instance, if you deposit $1000 into your trading account and you have a leverage of 1:100, your margin will equal $100,000.
What are some risk management tools that are useful for high-leverage trading?
Trading with high leverage demands diligent risk management. Tools such as stop-loss and take-profit orders can automate risk mitigation by setting predefined levels for losses and gains. It's also crucial to manage the size of your positions wisely, typically not risking more than 1-2% of your account balance per trade. Additionally, strategies like hedging or employing an automated trading system can help manage risk and reduce emotional decision-making.
How do margin requirements and margin call policies affect my high-leverage trading?
Margin requirements dictate the capital needed to open leveraged positions, with high leverage requiring less capital but increasing potential losses. Margin call policies outline when you must add funds to maintain open positions; failure to meet a margin call can lead to position closure and substantial losses. Both aspects are key to managing financial risk in high-leverage trading.
Which high-leverage broker suits the best professional traders?
With its access to deep liquidity and no restraints on leverage, we determined Exness the best broker for professional traders.
What role does volatility play in high-leverage trading?
Volatility plays a crucial role in high-leverage trading. High volatility means that the prices of an asset are changing rapidly in a short time, which can lead to significant price swings. In high-leverage trading, the potential for profits is magnified, but so too are potential losses. During volatile market conditions, even small price changes can result in significant profits or losses due to the leveraged nature of the position.
Can I lose more than my initial deposit in high-leverage trading?
Yes, when using high leverage in trading, it is possible to lose more than your initial deposit. High leverage can magnify both profits and losses. If the market moves against your position, losses can exceed your initial deposit. However, many brokers implement a "negative balance protection" policy, which ensures that traders cannot lose more than they have in their trading accounts. In case the losses exceed the account balance, the broker automatically closes the positions.
Can a broker close my positions if I can't meet a margin call in high-leverage trading?
Yes, if you can’t meet (or choose to disregard) a margin call, your broker will start closing out your losing positions when a stop-out level is reached.
Can I practice high-leverage trading on the broker’s demo account?
Yes. Indeed, this is even recommended to prepare you for the impact of high volatility on your account balance, which you can expect to increase with higher leverage.
Why is high leverage not allowed in the United States?
The restrictions on high leverage in the United States are primarily due to the regulatory measures designed to protect retail investors from excessive risk. The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the United States have imposed a leverage limit of 1:50 for major currency pairs and 1:20 for minor pairs for retail forex traders.
