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5 Best Forex Brokers for Hedging: 2024 Edition

Searching for the top forex broker for hedging? Based on our hands-on analysis, we’ve identified the 5 best options tailored to various trading needs. Practical tips from our experts are included.

Jitan Solanki
Reviewed By:
Aviva Gurevich
Updated: Mar 21, 2024

List of Top Forex Brokers that Allow Hedging

ECN pricing forex trading accounts. Zero deposit and withdrawal fees. Trade from MT4, MT5, cTrader platforms. 24/7 customer support.

MT4 plugins include Trading Central, Autochartist. Raw pricing ECN trading accounts. Low trading fees, 1:500 leverage. 2,250+ tradable instruments.

Floating spreads from 0.6 pips with zero commission. No swap fees, inactivity, or account maintenance fees. Live trading webinars for all levels. High leverage.

1,250+ tradable instruments. MT4, MT5, AvaOptions, AvaTradeGO, Web Trader platforms. Copy trading products AvaSocial, DupliTrade.

World’s largest social and copy trading platform. Easy-to-use proprietary web platform. CopyPortfolios, CopyTrader products. Wide range of educational materials.

What is Hedging in Forex Trading?

Hedging is a risk management strategy designed to reduce the risk of loss in a portfolio. For example, a trader can open two simultaneous positions on correlated markets to reduce the overall risk of their position.

A simple hedge could be going short on a currency pair that you are already long on. Any gains on the short position will offset any losses on the long position thereby reducing your overall risk which can be useful when trading around uncertain news events. A more advanced hedge is to identify positively correlated currency pairs to other markets such as indices, commodities, and bonds, and trade them in opposite directions.

How did FX Empire choose the best forex brokers for hedging?

FXEmpire's Methodology

  • We only selected brokers that achieved an overall top score of 4+ from our 250-point data broker reviews.
  • We ensured that each broker offers a trading account with hedging capabilities.
  • We checked the authorization and licenses from each broker to confirm their regulatory status.
  • We opened live trading accounts to test the trading fees of the instruments available.
  • We researched and tested the speed of order execution to ensure you can trade at the best possible price.
  • We explored the different trading platforms available and tested their usability.
  • We ensured the broker provides a variety of tradable instruments to perform hedging strategies on.
  • We tested the broker’s customer support for speed, efficiency, and knowledge.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

This analysis, combined with my personal trading experience, has led to the findings and research presented below. These highlight the best forex brokers for hedging across various categories, tailored to your specific trading needs.

Now let’s dive into the selected brokers.

Best Overall

Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
  • Min Deposit
  • Tradable Instruments
  • Fees

Established in 2005, FP Markets is regulated by ASIC, CySEC, and FSCA. It also maintains an unregulated entity in St. Vincent and the Grenadines (SVG). With 850+ financial CFD instruments available for trading, ECN pricing accounts for low spreads, and 3 distinct trading platforms suitable for hedging, FP Markets ranks as our top overall broker.

Key Features:

  • Regulation & Max. Leverage: ASIC (1:30), CySEC (1:30), FSCA (1:500), Unregulated SVG entity (1:500)
  • Tradable Instruments: 800+ overall, 72+ currency pairs
  • Live Test Average Spread: 1.1 pips EUR/USD, zero commission
  • Order Execution Speed: < 40 ms
  • Hedging Platforms: MT4, MT5, cTrader

With FP Markets, you have the option to open either a commission-free Standard Account or a commission-based Raw ECN Account. Hedging strategies are permitted across all three trading platforms, namely MT4, MT5, and cTrader. I enjoy using cTrader as it is geared toward high-frequency forex traders. Furthermore, combined with the Raw ECN Account, you can trade with spreads starting from 0.0 pips and a low trading commission of 3 USD per lot, per side. This is notably better than the MT4/MT5 commission of 3.50 USD (which is the industry average).

During the course of our live fee test, I observed that the Standard Account offered an average spread of 1.1 pips for EUR/USD during the London and New York sessions. This closely matches the industry’s average of 1.0 pips for a commission-free trading account. With more than 800+ financial instruments to trade on and zero deposit and withdrawal fees, FP Markets is a top broker to consider.

  • Hedge from multiple trading platforms.
  • Access commission-free trading accounts.
  • Trade with raw ECN pricing.
  • 24/7 customer support.
  • cTrader platform only available in certain jurisdictions.

Best MT4

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
  • Min Deposit
  • Tradable Instruments
  • Fees

Established in 2007, IC Markets is regulated by CySEC, ASIC, SCB, and FSA Seychelles. With an excellent range of MT4 plugins such as Trading Central and Autochartist, low trading fees, and 2,250+ financial instruments to trade on, IC Markets is a good option for hedging strategies on MT4.

Key Features:

  • Regulation & Max. Leverage: ASIC (1:30), CySEC (1:30), SCB (1:500), FSA Seychelles (1:500)
  • Tradable Instruments: 2,250+ overall, 61+ currency pairs
  • Live Test Average Spread: 0.65 pips EUR/USD, zero commission
  • Order Execution Speed: < 40 ms
  • Hedging Platforms: MT4, MT5, cTrader

IC Markets has long been established as the go-to broker for dedicated forex traders. They offer institutional-grade liquidity, lightning-fast execution speeds of less than 40 ms through low latency fiber optic connections, and competitive trading fees. During our live test, I found the spread on EUR/USD during the London and New York session averaged 0.65 pips which is much better than the industry average of 1.0 pips for commission-free trading accounts.

While IC Markets offers three robust trading platforms, MT4 has long been considered to be the gold standard for forex trading. With 80+ inbuilt technical indicators and drawing tools, 9 different timeframes, and 3 chart types, MT4 is an excellent platform for hedging. Furthermore, IC Markets enhances the MT4 experience by offering plugins from Trading Central and Autochartist. These plugins provide automated, real-time trading signals via its pattern recognition scanner – a fantastic tool to speed up your trading research and analysis.

  • Multiple platforms and MT4 plugins.
  • Low trading fees, fast execution.
  • Zero requotes, zero minimum order distance restrictions.
  • 2,250+ tradable instruments from MT4.
  • MT4 web platform is not as feature-rich as the desktop version.

Best Low Spreads

Forex margin trading involves substantial risks.
  • Min Deposit
  • Tradable Instruments
  • Fees

Established in 2011, OCTA has one entity regulated by CySEC and one entity that is unregulated and based offshore in St. Lucia. The broker offers competitive trading fees and the ability to use hedging strategies from the MT4 and MT5 trading platforms.

Key Features:

  • Regulation & Max. Leverage: CySEC (1:30), Unregulated entity in St. Lucia (1:500)
  • Tradable Instruments: 230+ overall, 35+ currency pairs
  • Live Test Average Spread: 0.90 pips EUR/USD, zero commission
  • Order Execution Speed: < 1 ms
  • Hedging Platforms: MT4, MT5

During our live fee test, our analysts found that the spread for EUR/USD during the most active sessions in the day averaged 0.90 pips for its commission-free trading account. This is better than the industry average of 1.0 pips. What stood out to me, given my 15 years of hands-on trading experience, is the absence of overnight swap fees for maintaining positions on any trading accounts. Such an offer is rare and is typically only found with Islamic swap-free accounts, which often have limitations on the holding duration.

Depending on your jurisdiction, you can trade from the MT4 and MT5 trading platforms. These are excellent for hedging strategies when trading forex pairs. The 35+ currency pairs that are available to trade on cover all the majors and minors, as well as some exotics. From my perspective, a notable addition is the regular live trading webinars tailored for both beginners and seasoned traders.

  • Competitive trading fees.
  • Zero overnight swap fees.
  • Zero inactivity or account maintenance fees.
  • Live trading webinars.
  • Trading conditions and features vary depending on your region.

Best for Professional Traders

Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
  • Tradable Instruments
  • Fees

Established in 2006, AvaTrade is regulated by the CBI, FSC BVI, ASIC, FSCA, FSRA, ISA, CySEC, and FSA Japan. With more than 1,250 financial instruments to trade and an excellent range of account types and trading platforms suitable for hedging, AvaTrade could be the broker for you.

Key Features:

  • Regulation & Max. Leverage: CySEC (1:30), CBI (1:30), ASIC (1:30), FSC BVI (1:500),
  • FSCA (1:400), FSRA (1:400), ISA (1:30), FSA Japan (1:25)
  • Tradable Instruments: 1,250+ overall, 55+ currency pairs
  • Live Test Average Spread: 0.90 pips EUR/USD, zero commission
  • Order Execution Speed: < 1 ms
  • Hedging Platforms: MT4, MT5, AvaOptions, AvaTradeGO

During our research, I found that AvaTrade offers Spread Betting, CFD, Options, and Islamic swap-free trading accounts. These are excellent options for hedging strategies. I found the Options account via the AvaOptions mobile app the best choice for hedging as it doesn’t require stop loss, unlike spread betting and CFD trading accounts. This is because, with options, you are purchasing the right but not the obligation to buy or sell an instrument at a certain price.

I found the AvaOptions mobile app very user-friendly in comparison to most options platforms. However, it is limited to 40 currency pairs and the trading of gold and silver. From the MT4, MT5, and AvaTradeGO platforms, you can trade on more than 1,250 financial instruments. During our live fee test, the spread for EUR/USD averaged 0.90 pips on their commission-free trading account, surpassing the industry’s average of 1.0 pips.

  • Multiple trading accounts.
  • Wide selection of trading platforms.
  • Options platform for hedging.
  • Additional plugins for copy trading.
  • Only 40 currency pairs on the AvaOptions platform.

Best for Beginners

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk
  • Min Deposit
  • Tradable Instruments
  • Fees

Established in 2007, eToro is regulated by the UK FCA, ASIC, CySEC, FINRA, and FSA Seychelles. Now the world’s largest social and copy trading platform, eToro provides an excellent range of tools and products for beginner traders, including easy copy trading access and extensive educational materials covering hedging strategies.

Key Features:

  • Regulation & Max. Leverage: FCA (1:30), CySEC (1:30), ASIC (1:30), FSA Seychelles (1:400), FINRA (1:1)
  • Tradable Instruments: 2,000+ overall, 49+ currency pairs
  • Live Test Average Spread: 0.95 pips EUR/USD, zero commission
  • Order Execution Speed: < 1 s
  • Hedging Platforms: eToro Platform

More than 25 million people use the eToro copy trading platform. After opening an account, you can view the performance of all the different traders on the platform and copy the same trades on your own account. It is an excellent way for beginner traders to watch seasoned traders in action and foster confidence early on. Additionally, eToro provides an array of educational content, delving deep into areas like technical and fundamental analysis.

From my own experience, the eToro web platform is probably the easiest trading platform to get started with. In our real-time fee test, I found the spread for EUR/USD averaged 0.95 pips during peak trading hours. This is much better than the industry average of 1.0 pips for commission-free accounts.

  • Extremely user-friendly web platform.
  • Copy the trades of other traders.
  • Extensive educational materials on hedging.
  • Interact with other traders.
  • Only one platform to trade from.

How to Choose the Best Forex Broker for Hedging?

Hedging is a risk management strategy used in forex trading to protect a current position moving in the opposite direction of your trade. It involves offsetting potential losses to try and limit any drawdowns.

To effectively implement a hedging strategy, you need a reliable forex broker. Here are some factors to consider when choosing a forex broker for hedging:

1. Choose a safe, regulated forex broker

When it comes to hedging in forex trading, safety is paramount. After all, you’re entrusting your hard-earned money to a broker, and you want to ensure that your investment is secure.

Look for a broker that is regulated by a reputable financial authority. A regulator from a well-known financial jurisdiction, such as the UK FCA, ASIC, or CySEC, sets strict standards that brokers must adhere to, which helps to protect your capital from fraud and negligence.

In our broker rating reviews, we classify regulators into four categories and tiers:

  • Tier-1: These regulators are situated in well-known financial centers and have a strong track record of protecting traders. Examples of Tier-1 regulators include the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and others.
  • Tier-2: These regulators are situated in established but smaller financial centers. Examples of Tier-2 regulators include the Cyprus Securities and Exchange Commission (CySEC) and the Financial Markets Authority (FMA) of New Zealand.
  • Tier-3: These regulators are situated in offshore countries. They may have a lower level of regulatory oversight than Tier-1 or Tier-2 regulators. Examples of Tier 3 regulators include the International Financial Services Commission of Belize (IFSC), among others.
  • Unregulated: Some brokers are not regulated by any financial authority and are based in offshore locations such as St. Vincent and the Grenadines, St. Lucia, and many others. These brokers are considered to be high-risk and are best avoided.

Brokers regulated by Tier-1 financial regulators, such as the UK FCA, CySEC, and ASIC, offer the highest level of protection for traders. These regulators require brokers to segregate client funds from their own, which means that your money is kept separate from the broker’s money. You can check out our detailed guides on the best FCA, best CySEC and best ASIC-regulated forex brokers.

Tier-1 regulators also require brokers to offer negative balance protection, which means that your account cannot go below zero. Consequently, you cannot lose more than you’ve deposited.

In addition, the FCA and CySEC require brokers to be part of a compensation scheme, which means that you are protected up to a certain amount if the broker becomes insolvent.

Be sure to check the terms and conditions of the broker entity you are opening an account with, as many brokers will have entities all over the world. You can confirm the regulatory status of a broker by visiting the regulator’s online register. To save you time, we have created a comprehensive guide on the best regulated forex brokers.

2. Check for transparent and low fees

There are a range of fees that you should be aware of when choosing a forex broker to trade with. These fees can be categorized into trading fees and non-trading fees.

Trading fees are charged for opening, closing, and holding a trade. They include:

  • Spread: The spread is the difference between the buy price and the sell price of a financial instrument. It is the main source of income for most forex brokers. The spread should be as low as possible. See our guide for the best lowest spread and best zero spread forex brokers.
  • Commission: Commission is a flat fee charged by the broker for opening and closing a trade. It is typically charged per lot, or 100,000 units of the base currency. The commission should also be as low as possible.
  • Swaps: Swaps are fees charged for holding a leveraged or margined position overnight. The swap fee is based on the two different interest rates of the currency pair you are trading on, plus a broker’s markup. Discover Best forex brokers with low spreads.
  • Non-trading fees are charged for things like account opening, deposit and withdrawal, inactivity, and in some cases, education, and research. These fees can vary depending on the broker, so it is important to check them before you open an account.

The best way to test the fees for yourself is to use a demo trading account or open a live account with the minimum deposit first. Alternatively, you can read the review of a broker from the FX Empire website, in which our team of analysts has tested the spreads for you.

3. Explore the different account types available

Brokers will often provide a range of different account types. Each account type will come with different features, services, and products. It is important to check that the account type you are opening allows for hedging.

For some fixed-spread trading accounts, hedging may not be allowed as the broker is already hedging your trades to provide you with a fixed spread. Most brokers will offer accounts that have floating spreads based on the underlying market. These types of accounts are more likely to allow hedging.

Many brokers offer the use of a demo trading account nowadays. This allows you to test each trading account without risk, providing an excellent starting point. Explore forex brokers with the best forex trading demo account in our guide.

4. Be careful of leverage

The invention of CFDs has led to a huge rise in the popularity of forex market trading. CFDs, or contracts for difference, allow traders to trade long and short using leverage.

Leverage is a powerful tool that can amplify both profits and losses. If a broker offers 1:30 leverage, this means that you can control a position 30 times larger than your deposit. So, with a $1,000 deposit, you could manage a $30,000 position. You can check out FX Empire’s carefully selected list of the best forex brokers with high leverage.

The amount of leverage that a broker offers depends on your categorization as a client (retail or professional) and which financial regulator the broker falls under.

In 2018, the MiFID II European Market Act Directive legally required Tier-1 regulators to impose a 1:30 leverage restriction on retail clients trading forex. This is because many retail traders were wiping out their trading accounts using too much leverage.

If you’re classified as a professional trader, brokers overseen by Tier-1 regulators can provide higher leverage, sometimes reaching 1:500 for forex. However, you may lose some of the protections afforded to retail traders, such as negative balance protection.

5. Test the different trading platforms

Brokers typically offer a range of trading platforms. Here are some of the most common platforms that provide hedging capabilities:

  • MetaTrader 4: Considered to be the ‘go-to’ forex trading platform with an extensive range of inbuilt indicators and drawing tools.
  • MetaTrader 5: An updated version of MT4 with more timeframes, indicators, and algorithmic trading capabilities.
  • cTrader: Designed with day traders and scalpers in mind, this is the go-to platform for high-frequency traders.
  • TradingView: Fully browser-based charting and social networking platform that is now the most used platform in the world, with 50 million users a month.
  • Broker Platform: Some brokers invest in creating their own proprietary trading platforms for their clients.

It is wise to test each trading platform using a demo account first. Utilize the broker’s educational materials to find the platform that works best for you. Read more about the platforms in our detailed guides on the best MT4 brokers, best MT5 brokers, and best cTrader brokers.

What to avoid when choosing a Forex broker for Hedging?

When selecting a Forex broker for hedging, there are some red flags that you should be aware of. These include:

  • Lack of regulation. Avoid brokers that are not authorized by a reputable regulatory body. Unregulated brokers may not adhere to the strict rules and standards that protect your capital.
  • Restrictions on hedging. Some brokers may have restrictions on hedging or may not allow it at all. Avoid these brokers if hedging is a key part of your trading strategy.
  • Low fee transparency. Be wary of brokers whose fees are not transparent. If you have to search too far to find broker’s fees, then it is a red flag.
  • Poor customer service. Avoid brokers that offer poor customer service. You need a broker who can provide prompt and helpful support when you have issues with your hedging trades.

Hedging is an advanced trading strategy that requires a reliable and supportive broker. By avoiding these red flags, you can increase your chances of success when hedging with Forex.

How to avoid forex and CFD scams?

The Forex market is a global marketplace where traders can buy and sell currencies. However, there are many scam brokers out there who prey on unsuspecting traders. Here are some tips on how to protect yourself from scam Forex brokers:

  • Only trade with regulated brokers. A regulated broker is one that is authorized to operate by a financial regulator. This means that the broker is subject to certain rules and regulations that help to protect traders.
  • Check the broker’s website for contact information. A legitimate broker will have a physical address and phone number that you can contact. If you cannot find this information on the broker’s website, it is a red flag.
  • Use a demo account before you start trading with real money. A demo account is a free account that allows you to trade with virtual money. This is a great way to test out a broker’s platform and learn how to trade before you risk any real money.
  • Read the broker’s terms and conditions carefully. This document will outline the broker’s policies and procedures. It is important to understand these policies before you start trading.
  • Start with a small amount of capital. This will help you to minimize your losses if you do experience a scam.

By following these tips, you can better protect yourself from scam Forex brokers.

Our Methodology

FX Empire has been pioneering the broker rating review industry for many years. Our review process has expanded and diversified over the years and now includes 250 data points covering nine core categories Trust, Fees, Platforms and Tools, Tradable Instruments, Customer Service, Deposit and Withdrawals, Account Types, Research, and Education.

Our team of analysts identified the best forex brokers for hedging by utilizing the results of our live testing on each of these categories, as well as the following factors:

  • Overall score of 4+ in our rating review
  • Broker entities that offer regulatory oversight
  • Account types that allow hedging
  • A wide range of tradable instruments
  • Competitive trading fees
  • Easy-to-access trading platforms
  • Good customer support

We believe that these factors are essential for traders who are looking for a safe and reliable broker to trade with. Our reviews are designed to help you make an informed decision about which broker is right for you.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

In forex trading, hedging is a risk management strategy that balances losses in one investment with gains in another, thus protecting traders' portfolios from substantial damage during market volatility.
Hedging in forex trading mitigates risk by balancing potential losses from one investment with gains from another, providing protection during market volatility. The aim is that any losses from a current may be offset by any gains from a new position (the hedge).
Forex hedging is legal in most markets, but the regulations vary by country and by individual brokers. For instance, in the United States, direct hedging on currency pairs is restricted due to regulations from the CFTC.
An ECN (Electronic Communication Network) account is often recommended for hedging. This type of account connects traders directly with liquidity providers like banks and brokerages, which can result in faster execution times, lower spreads, and more efficient hedging.
An ECN account is recommended for hedging because it provides more transparent pricing, faster order execution, and lower spreads compared to other account types. This results in lower fees which helps to create an effective hedge.
The best tradable instruments for hedging depend on the trader's specific needs, but commonly used instruments for hedging include major and minor currency pairs (due to their liquidity and low spreads).
Many brokers allow hedging, but the specifics depend on the broker's policies and the regulations of the country in which they operate. Top-5 brokers that allow hedging, according to our research, include FP Markets, IC Markets, OCTA, AvaTrade, and eToro.
Trading tools that can be helpful for hedging include stop loss orders, limit orders, and trailing stop orders, as these all help to automate your risk management. Additionally, analytical tools like economic calendars and market news feeds can help traders make informed decisions about when to hedge their trades.
Hedging can be suitable for beginner traders as it offers a strategic approach to minimize potential losses, although it requires an understanding of the forex market and careful execution of a well-thought-out strategy.
The main risk of hedging is timing. If you place a new trade to hedge against a trade that is already losing, then you could also end up losing on the new trade resulting in bigger losses overall.
There is no extra fee to hedge as it is considered to be another trade, so regular fees will apply. This includes the spread fee, a potential commission to buy and sell, as well as overnight swap charges for longer-term positions.
Yes, automated trading systems or expert advisors can be used for hedging, allowing for more precise and timely trade executions in forex trading.
Negative balance protection prevents a trader’s account from going into debt and owing money to the broker. This is done by your broker automatically by closing your trades in the event of an adverse move in the market.
To verify if your broker offers negative balance protection, you can check their website or trading agreement or contact their customer service directly. Brokers regulated by Tier-1 regulators are legally required to offer this to retail traders.
A compensation scheme protects your capital up to a certain level in the event your broker becomes insolvent or ceases trading. Not all brokers are members of a compensation scheme, and the coverage varies from one scheme to another.
To verify if your broker is part of a compensation scheme, check their website for details or directly contact them for confirmation. Brokers regulated by some Tier-1 regulators, such as the UK FCA and CySEC, are legally required to offer this to retail traders.
A segregated fund is where client capital is held separately from the broker’s operational funds. It ensures your broker is not using your funds to run their business.
To verify if the broker offers a segregated fund, you can check their website or trading agreement or contact their customer service directly. Brokers regulated by Tier-1 regulators are legally required to offer this to retail traders.

About the Author

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.