Best Forex Brokers For Hedging 2019

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A list of Forex brokers that allow positions to be Hedged. Hedging involves opening opposite trades of the same pair and have both trades remain open and not cancel each-other out.

Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.
Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

Oanda

Regulated By:

CFTC, DFSA, FSA, IIROC, MAS, NFA

Foundation Year
2001
Headquarters:

N/A

Min Deposit
$1
Visit Broker

Your capital is at risk

Tickmill

Regulated By:

CySEC, FCA

Foundation Year
2014
Headquarters:

N/A

Min Deposit
$100
Visit Broker

Your capital is at risk.

Vantage FX

Regulated By:

ASIC

Foundation Year
2009
Headquarters:

N/A

Min Deposit
$200
Visit Broker

Your capital is at risk

AvaTrade

Regulated By:

ASIC, BVI, FSA(JP), FSB

Foundation Year
2006
Headquarters:

N/A

Min Deposit
$100
Visit Broker

Your capital is at risk

Hedging Brokers Comparison Table

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Broker
Rating
Regulations
Headquarters Country
Foundation Year
Min Deposit
Max Leverage
Trading Platforms
Publicly Traded
Restricted Countries
Trading Desk Type
Currencies
Commodities
Indices
Stocks
Cryptocurrency
ETFs
Bonds
Futures
Options
Mutual funds
Deposit
Withdrawal
Commission on trades
Fixed spreads
OS Compatibility
Mobile trading
promotions
Visit Broker
CFTC, DFSA, FSA, IIROC, MAS, NFA

United States

2001

$1

1:50

MT4, Oanda fxTrade

No

N/A

Market Maker, No dealing desk

No

No

No

No

No

No

No

No

No

No

Credit Card, PayPal, Wire Transfer

Credit Card, Wire Transfer

No

No

N/A

N/A

No
Open Account

Your capital is at risk

CySEC, FCA

United Kingdom

2014

$100

1:500

MT4

No

Croatia, Cuba, Iran, Iraq, Mozambique, Myanmar, Niger, North Korea, Spain, Sudan, Sweden, Syria, United Arab Emirates, United States

No dealing desk

Yes

Yes

Yes

No

No

No

Yes

No

No

No

Credit Card, Neteller, QIWI, Skrill, Wire Transfer

Credit Card, Neteller, QIWI, Skrill, Wire Transfer

No

No

N/A

N/A

No
Open Account

Your capital is at risk.

ASIC

Australia

2009

$200

1:500

MT4, MT5

No

Russian Federation, United States

ECN, STP

Yes

Yes

Yes

No

Yes

No

No

No

No

No

Credit Card, Moneybookers, Neteller, Poli, Skrill, Wire Transfer

Credit Card, Moneybookers, Neteller, Poli, Skrill, Wire Transfer

Yes

No

N/A

N/A

No
Open Account

Your capital is at risk

ASIC, BVI, FSA(JP), FSB

Ireland

2006

$100

1:400

ActTrader, MT4

No

United States

Market Maker

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Credit Card, Moneybookers, Neteller, PayPal, Union Pay, Webmoney, Wire Transfer

Credit Card, Moneybookers, Neteller, PayPal, Union Pay, Webmoney, Wire Transfer

No

Yes

N/A

N/A

No
Open Account

Your capital is at risk

What is Hedging?

Hedging is a somewhat advanced type of investment strategy. The sole strategy or purpose of hedging is to protect the investor by mitigating possible losses. Hedging acts as a sort of insurance for the investor in the event of a negative outcome. The strategy reduces exposure to various risks by using instruments in the market to counterpoise risk from negative price movements. So, in investment terms; investors “hedge” one investment by making another. However, hedging is not the holy grail of investment insurance, it comes at a cost. Insurance is not free and this is true with hedging as well, while using a hedging strategy your potential profits are reduced, as well as your potential losses.

What is Hedging in Forex?

Hedging in forex protects investors from the volatility and uncertainty of financial markets. With forex hedging, the strategies refer to the act of an additional buy/trade of currency to offset the risk involved in the initial buy/trade. It is a method of insurance for forex traders, but should only be used by experienced traders who understand the ups and downs along with timing in the market. Adopting a hedging strategy without sufficient trading experience can make for disastrous impact on your account.

Forex Hedging Strategies

There are numerous hedging strategies forex traders can use. Some are quite simple, while some are more complex. The type of hedging strategy implemented depends on the experience level and preference of an investor, as well as whether it’s allowed by the brokerage. The hedging strategies are overviewed below:

  • Simple Forex Hedging- Some brokers allow you to place a trade to buy a currency pair, while at the same time placing a trade to sell the same currency pair. The net profit is zero while open, but if you time the trades just right you can come out with a profit while mitigating the risk.
  • Complex Hedging- For brokers who do not allow hedging, there are ways to get around their rules through complex hedging. There are numerous methods for this strategy.
  • Multiple Currency Pairs- This strategy differs from simple forex hedging because of the trading of 2 different currency pairs. This method of hedging is more complex and often requires many different currency pairs to be traded.
  • Forex Options- This method is different from all other hedging methods since there is a predetermined price and time frame to commence the trade. For instance, you conduct a trade at a specific price, as well as a strike option lower than the current price. If your exchange reaches the price point you specified in the future within the specified time frame you reap the profits. Or, if the price hits the strike option you lose, trading at the lower price. If it neither reaches the determined price in the future or hits the strike option, you lose on the purchase price of the option.

Do Forex Brokers Allow Hedging?

Hedging may be a popular method among forex investors, but not all forex brokers allow hedging. Many experts are totally against the practice of hedging; therefore, it is not welcomed on all platforms and brokerages. US based brokers strictly prohibit hedging because of US law instating a Fist In First Out policy (FIFO).