5 Best High Leverage Forex Brokers for 2022 • Benzinga

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Currency traders have a few advantages over traders of other types of securities. The market remains open 24 hours a day during the work week and the commissions of the best high leverage forex brokers are often only a fraction of what online stockbrokers charge. But the biggest advantage is the margin requirements and the leverage. You don’t need a big injection of capital to start a career as a forex trader, just the right tools and the right broker.

Quick Overview: Best High Leverage Forex Brokers

5 Best High Leverage Forex Brokers

Using the criteria above, Benzinga has identified the best high leverage forex brokers in the market today. High leverage in the US is limited to 50:1, but for international brokers to be eligible they must offer 500:1 leverage for at least a few major pairs.

1. Best Overall: FOREX.com

FOREX.com offers over 70 currency pairs and you will get 2% margin (50:1 leverage) on major EUR/USD, USD/CAD and EUR/CAD pairs. Most other major pairs rest between 3% and 5% margin. Forex.com offers three different account types: standard, commission, and direct market access (DMA). The standard account is split only, while the commission account narrows the spreads but institutes a commission of $5 per 100,000 units.

FOREXX.com supports MetaTrader 4 and NinjaTrader and has its own proprietary trading system available at desk. Deep discounts are available and Forex.com will even refund any bank charges you incur on wire transfers.

Read the full FOREX.com review of Benzinga

2. Best for $0 commission: CedarFX

CedarFX bills itself as the original green brokerage, offering both the commission account and the green account. You can trade a range of financial tools through CedarFX, including foreign currencies.

While CedarFX matches $1 commissions on green accounts, planting over 100,000 trees to offset its carbon footprint with the help of Ecologi, it also offers highly leveraged trading.

You can use free demo accounts to learn how your trading style works in today’s market, and you have access to leverage of up to 500:1 for forex trading. To help diversify your portfolio, you also have access to leverage of 500:1 for precious metals, 200:1 for indices and commodities, 100:1 for cryptocurrencies and 20:1 for stocks.

High leverage with CedarFX allows you to speculate as much as you want, buy for growth, short certain currencies and quickly increase your net worth.

  • CedarFX is not regulated by any major financial agency. The brokerage is owned by Cedar LLC and is based in St. Vincent and the Grenadines.

Read Benzinga’s full CedarFX review

3. Best for non-US residents: AvaTrade

AvaTrade applies 7 regulations on 6 continents (Europe, Australia, Japan, British Virgin Islands, United Arab Emirates and South Africa). It offers wide asset availability, cutting edge platforms and leverage up to 400:1.

AvaTrade caters to its customers, offering 24-hour multilingual support for a wide range of instruments, platforms and services for each level of trader. AvaTrade’s innovative technology and state-of-the-art trading features also include one-on-one training sessions with a dedicated account manager. With AvaTrade, you can trade:

  • Forex
  • Shares
  • Goods
  • Cryptocurrencies
  • clues

AvaTrade offers desktop, tablet, mobile and web trading with MetaTrader 4, MetaTrader 5, its proprietary WebTrader, AvaOptions and AvaTradeGO. Client funds are held in segregated accounts for added security.

Read the full AvaTrade review from Benzinga

4. Best Forex Execution: IG

With a leverage of 500:1, IG is another broker that allows you to speculate on currencies around the world. IG offers high leverage, which you need to increase your earnings quickly, but the platform makes the process as simple and profitable as possible for investors by:

  • 80 currency pairs to choose from
  • Very tight spreads from 0.8 pips
  • Massive liquidity
  • Open 24 hours a day, 5 days a week

Take advantage of the simplicity of the platform and leverage options to diversify your portfolio without investing all your money at once.

Read Benzinga’s Full IG Markets Review

5. Best for Non-US Residents: Pepperstone

Pepperstone, based in Melbourne, Australia, aims to provide traders around the world with superior technology and low cost spreads and a real commitment to merchants.

Pepperstone offers 500:1 leverage for forex in ASIC, 50:1 in its DFSA jurisdiction and 30:1 in its FCA jurisdiction. This means that for every $1 you have in your trading account, you can trade $500 under ASIC, $50 under DFSA and $30 under FCA on the forex market.

Access Pepperstone’s platforms, available on Windows and Mac OS for desktops, iOS and Android for mobiles and tablets and on its web application, WebTrader. You can also use MetaTrader 4 and MetaTrader 5 or cTrader. You can also access a few social trading platforms – Myfxbook, Mirror Trader and RoboX.

  • Minimum account

    AUD$200 or equivalent

Read Benzinga’s full Pepperstone review

What is Leverage and Margin in Forex Trading?

Traditional stockbrokers in the United States often offer margin trading to their clients. The broker will lend the client money for additional stock purchases and then earn money in interest when the loan is repaid. Margin rates vary, but most online brokers charge clients between 5% and 9% borrow money, depending on the amount. Why would clients want to borrow money for the stock market from their brokers?

They want to increase leverage on trades.

Leverage refers to how much borrowed money is involved in a transaction. At most brokerages, investors can get 2:1 leverage, which means they need $50 in their account to trade $100 in capital. Obviously, leverage adds risk to any trade. Since you don’t just lose your capital if it goes wrong, you owe your broker money.

Excessive leverage has killed many financial firms, including Lehman Brothers and Long Term Capital Management. But when used correctly, you can generate huge profits with little initial capital.

In forex trading, leverage can often reach 500:1. Since currencies move gradually against equities, the use of leverage does not carry the same risks. When trades are measured in fractions of a penny, a leverage of 500:1 does not seem excessive. Forex brokers use margin requirements to determine how much leverage currency traders can use per trade. This is expressed as a percentage, like USD/EUR trades which require a 2% margin.

Limits in the United States

Forex trading is subject to stricter regulations in the United States than in most countries in the world. Europe and Australia have no aversion to leverage as high as 500:1, but US law limits forex brokers to 50:1 leverage.

Additionally, many forex brokers offer contracts for difference (CFDs) on indices, bonds, commodities, and even cryptocurrencies. These products are highly speculative and completely banned in the United States, which means that MetaTrader 5 has virtually no adoption.

What to Look for in a High Leverage Forex Broker

Choosing a forex broker depends not only on your trading preferences, but also on the country in which you live. US forex traders will not be able to use the highest leverage available or use popular trading programs like MetaTrader 5. When choosing a broker, here are a few things to pay attention to:

Margin requirements

In the United States, margin requirements are limited to 2% (50:1 leverage). Internationally, you can leverage trading up to 500:1 on most major currencies. You don’t need to use high leverage on all trades, but be sure to choose a broker with limits that work for you.

Commissions and fees

Forex brokers make money in two ways: from commissions or from the spread. Many brokers have spread-only and commission accounts available, and commission accounts get reduced spreads. Brokers have fee tables on their websites. Make sure you understand all fees before opening an account.

Support for trading software

Many forex brokers have their own proprietary trading software, but also offer popular platforms such as MetaTrader 4 and cTrader. If you enjoy trading using MetaTrader 4, make sure the broker you choose supports it!

Account and Transaction Minimums

The capital required to open an account varies by broker, as does the amount needed to complete a trade. Some brokers may have no account minimums, but all will have trading minimums.

Get the Best High Leverage Forex Broker

Forex traders benefit from leverage which weakens stock and bond traders. 500:1 leverage is not uncommon for most forex brokers, but US clients can only get 50:1. However, leverage should not be the only factor when choosing a forex broker.

Consider the trading platforms and currency pairs available, the costs and fees associated with trading, and the capital needed to open an account.

Frequently Asked Questions

questions and answers

Q

What happens if I am over-indebted?

A

Over-indebtedness goes beyond approved margin equity by creating a negative balance in your account.

Q

Is Using High Leverage Good With Forex?

A

Leverage increases your buying power and allows you to profit from small moves. The downside is that if the position goes against you, it creates margin calls.

Explore more: BEST ASIC REGULATED FOREX BROKERS

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