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6 Best High Leverage Forex Brokers for 2024

Looking for the top broker with the highest leverage? 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.

By:
Plamen Stoyanov
Reviewed By:
Ola Alder
Updated: Mar 26, 2024

List of Top Forex Brokers with High Leverage

Best brokers for US traders

Reputable broker with 50 years in the industry. Low trading costs. Choice of versatile platforms. Lightning-fast execution speeds.

Over 50 futures contracts. Low trading commissions. Feature-rich platform. Service geared towards day trading and position trading.

Best brokers for international traders

Leverage up to 1:2000. MT4, MT5, and R Stocks Trader. Multilayered protection. Variety of account types. Low minimum deposit. Comprehensive educational content.

Leverage up to 1:1000. Good range of retail account types. No minimum deposit requirement. MQL5 trading signals. VPS hosting.

Leverage up to 1:2000. Raw spreads and low fixed commissions. MT4, MT5, proprietary mobile app. MT4 Indicators, VPS hosting, Professional designation with greater leverage.

MT4, MT5, AvaTradeWeb platforms, AvaTradeGO and AvaOptions apps. Top-tier regulations. Copy and automated trading. Tools for enhanced risk management.

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?

FXEmpire's Methodology

  • 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.

Best Overall

Forex trading involves risks.
  • Min Deposit
    $10
  • Tradable Instruments
    12060
  • Fees
    Low

Established in 2009, RoboForex has quickly asserted itself as a reliable broker with diverse services. The Belize-based Forex broker has a well-balanced offering of competitive fees, multiple account types, trading platforms, and an impressive assortment of over 100 tradable instruments.

What stood out the most to me when testing RoboForex is its commitment to safety, which is particularly important when dealing with leverage of up to 1:2000. The broker ensures negative balance protection and stop-out at 40%. I assessed that clients of RoboForex are given all essential safety mechanisms to manage market exposure.

Key Features:

  • Entity with the highest leverage: RoboForex Ltd, regulated by Financial Services Commission (FSC) Belize, license no. 000138/437
  • Maximum leverage: 1:2000
  • Risk management: Negative balance protection, Stop out at 40%
  • Available platforms: MetaTrader 4, MetaTrader 5, RoboForex WebTrader, RoboForex StocksTrader

I opened an ECN account with RoboForex. It has floating spreads starting from 0.0 pips and a $20 commission per trading 1 million USD volume. These results meet the industry average. I consider this pricing mechanism suitable for high-frequency trading but less so for high-volume trading due to the relatively higher commission.

Where RoboForex really stands out is in the choice of platforms. Traders can choose between the popular MetaTrader 4&5 and RoboForex’s proprietary WebTrader and StocksTrader platforms. I appreciated this diversity as it allows traders to choose something specifically for their type of trading. Newbies thus may go for the popular MetaTrader, whereas experienced stock traders may go for RoboForex StocksTrader.

Pros
  • Multilayered protections.
  • Variety of accounts.
  • Flexible pricing mechanisms.
  • Excellent customer support.
Cons
  • Limited research materials.
  • High commissions.

Best Account Offering

CFDs are complex instruments and carry a high level of risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether trading is appropriate for you. You should not invest money that you cannot afford to lose. Leveraged products may not be suitable for everyone and may result in loss of all your capital.
  • Min Deposit
    $5
  • Tradable Instruments
    130
  • Fees
    High

FXGT.com is a Seychelles-based Forex and CFDs broker that was founded in 2019. It offers over 150 tradable instruments and four account types, including no-commission and ECN.

Key Features:

  • Entity with the highest leverage: 360 Degrees Markets Ltd, regulated by Financial Services Authority (FSA) Seychelles, license no. SD019
  • Maximum leverage: 1:1000
  • Other entities: Maximum leverage for retail traders with the VFSC (Vanuatu) entity – 1:1000, for retail traders with the FSCA (South Africa) – 1:400
  • Risk management: Negative balance protection, margin call (50%-70%) and stop out (20%-40%)
  • Available platforms: MetaTrader 4, MetaTrader 5

FXGT.com incorporates MetaTrader 4&5. The two afford basic technical analysis and have over 50 technical indicators and drawing tools, though the two platforms do not have as intuitive designs as newer and sleeker platforms.

I opened an ECN account with FXGT.com to test its conditions. It has floating spreads starting from 0.1 pips and a $6 round-turn commission per traded lot, meeting the industry average. I also clocked FXGT.com’s average execution speed at 120 milliseconds, which is slightly slower than the industry standard.

I also assessed that, with negative balance protection and relatively tight margin call requirements and stop-out levels, FXGT.com’s safety mechanisms for limiting the risk of account balance wipeout meet the industry standards. This is vitally important when trading highly volatile assets, such as cryptocurrencies.

Pros
  • Competitive pricing.
  • Diverse account types.
  • Choice of crypto instruments.
Cons
  • Slower execution speeds.

Best Low Spreads

4.3
82% of retail CFD accounts lose money
  • Min Deposit
    $500
  • Tradable Instruments
    266
  • Fees
    Medium

FXTM was established in 2011 and is headquartered in Limassol, Cyprus. The company has offices globally and serves international traders. I checked FXTM’s services thoroughly and found them quite diverse. The broker has a very well-structured educational program, provides probing research materials, and has reliable 24/5 customer support.

Traders can enjoy maximum leverage of 1:2000, ideal for highly speculative trading. However, FXTM does not provide negative balance protection as a safety precaution against the risks of high market exposure. These risks are, nevertheless, mitigated by the relatively narrow margin call and stop-out levels.

Key Features:

  • Entity with the highest leverage: Exinity Limited, regulated by FSC Mauritius, license no. C113012295
  • Maximum leverage: 1:2000
  • Other entities: Maximum leverage for retail clients with the FCA (UK) and CySEC (Cyprus) entities – 1:30
  • Risk management: Margin call (60%-80%) and stop-out level (40%-50%)
  • Available platforms: MetaTrader 4, MetaTrader 5

I tested FXTM’s fees and discovered that the Advantage account offers the most favorable conditions. With raw spreads starting from 0.0 pips and commissions of up to $2 depending on the traded volume, the account type is suitable for high-volume and high-frequency trading. FXTM was chosen for this category because this pricing mechanism is especially favorable for some instruments. For instance, if you were to open a full-sized position – 1 lot (100,000 units) – on the EUR/USD, I measured the value of such a trade at around $5. This is well below the industry average.

Traders can choose between MetaTrader 4&5. The two are popular, with easy-to-navigate designs. The two entries in the popular franchise offer more than 50 technical indicators and drawing tools.

Pros
  • Competitive pricing
  • Diverse accounts
  • Free VPS hosting
  • Tight stop-out levels
Cons
  • No negative balance protection

Best Choice of Trading Platforms

Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
    $100
  • Tradable Instruments
    853
  • Fees
    Medium

AvaTrade is a broker with remarkable attention to detail, offering a variety of platforms for inexperienced retail traders, seasoned options traders, and traders interested in social and automated trading. Founded in 2006 and headquartered in Ireland, AvaTrade is a multi-regulated broker that offers access to over 1250 instruments.

Key Features:

  • Entity with the highest leverage: AvaTrade Markets Limited, regulated by the Financial Services Commission (FSC) of the British Virgin Islands
  • Maximum leverage: 1:400
  • Risk management: Negative balance protection, margin call at 50%, AvaProtect
  • Available platforms: MetaTrader 4, MetaTrader 5, Ava Web Trader, AvaOptions, AvaSocial, DupliTrade

AvaTrade offers multiple platforms for different purposes. Less experienced traders might be familiar with MetaTrader 4&5, while more experienced chart artists might be interested in Ava’s WebTrader platform, with its more sophisticated charting capabilities.

AvaOptions is the go-to solution for seasoned traders looking to execute option contracts and position themselves according to forecasted changes in volatility. The broker also incorporates DupliTrade and AvaSocial, which cater to the needs of those interested in social and automated trading.

I assessed AvaTrade’s fees and discovered they vary from asset class to asset class. With its floating spreads around 0.9 pips, AvaTrade’s best conditions are on currency pairs and commodities.

Pros
  • Multiple regulations.
  • Variety of platforms.
  • Copy and automated trading solutions.
  • Unique risk management tools.
Cons
  • No offshore investor compensation scheme.

Best Overall in the US

74% of retail CFD accounts lose money
  • Min Deposit
    $100
  • Tradable Instruments
    82
  • Fees
    Low

IG is one of the biggest brand names in the forex and CFD industry. London-based broker was founded in 1974. The firm has a market cap of over GBP 2.5 billion and is listed on the London Stock Exchange (LSE). IG has been active in the US market since 2019.

Key Features:

  • Entity with the highest leverage: IG US LLC, regulated by the US Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) under license no. 0509630
  • Maximum leverage: 1:50
  • Available platforms: MetaTrader 4, ProRealTime, IG Platform

I determined IG the best choice for US traders because of its competitive prices, versatile platforms, and range of services. It offers over 80 forex spot pairs across majors, minors, and exotics. Its spreads start from 0.8 pips, which is below the industry average for the US market.

There are no additional trading costs, barring swap charges, as the commission is built into the spread. The lowest margin rate with IG is 2%, which equals a maximum leverage of 1:50.

What impressed me most about IG is its excellent execution standards. The broker achieves median execution speeds of around 17 milliseconds, which is among the best in the industry. I thus concluded that the broker is ideal for high-frequency trading.

This is also made possible by its excellent proprietary platform. Its web trader version is feature-rich with complex charting and order execution capabilities. Price action is illustrated clearly and concisely, making the platform an ideal choice for technical traders.

Pros
  • Well-established and strongly regulated broker
  • Listed on a London exchange
  • Tight spreads
  • Versatile platforms
Cons
  • Instruments limited to spot forex

Best for Futures Trading in the US

Trading with leverage comes with a high risk and may not be suitable for everyone.
  • Min Deposit
    $100
  • Tradable Instruments
    52
  • Fees
    Low

There are 500+1 things to like about Plus500, with its rock-bottom fees and sophisticated platform. The US-based broker was founded in 2008 and has since then become one of the best options for futures trading*.

Key Features:

  • Entity with the highest leverage: Cunningham Commodities LLC, regulated by US Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) under license no. 0001398
  • Available platforms: Plus500 web platform and mobile app

Plus500 offers a choice of over 50 tradable instruments across different markets, including forex, commodities, indices, crypto, equity, and interest rates. This diversity of futures contracts is geared towards day and position traders interested in hedging their exposure over the medium and long term.

I tested the broker’s fees and discovered that they fall below the industry average. Plus500 charges a $0.89 commission (per side) for standard and E-mini contracts. And for micro contracts, I found that the broker charges a $0.49 commission (per side).

I also executed a couple of positions on the broker’s proprietary platform, which I found light and pleasant to use. It features over 100 analytical tools, allowing traders to assess the underlying market sentiment as it changes in the short and long terms.

Its charts are detailed and easily scalable, which is necessary for carrying out sophisticated technical analyses.

*Futures contracts can be traded on margin, which gives traders greater flexibility to exploit expected and unexpected changes in volatility in the medium and long term.

Pros
  • Tightly regulated
  • Good choice of futures contracts
  • Low trading fees
  • Versatile platform
Cons
  • Limited research content

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 brokers and 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.

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.

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.
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.
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.
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.
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.
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.
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.
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.
With its access to deep liquidity and no restraints on leverage, we determined Exness the best broker for professional traders.
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.
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.
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.
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.
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.

About the Author

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.

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.