5 Best Forex Brokers with 1:500 Leverage for 2025

How to Choose a Forex Broker With 1:500 Leverage?

In this part, I will outline the key factors to consider when choosing a trustworthy forex broker with 1:500 leverage.

How to verify if a forex broker is safe?

Verify that a broker is fully licensed and tightly regulated:

• Check the Broker’s Website: Start by looking at the broker’s official website. Regulated brokers typically display their licensing and regulation information, including license numbers and the names of the authorities that regulate them, often found in the footer of the website or on an ‘About Us’ or ‘Regulation’ page.
• Contact the Broker Directly: If you are still unsure, contact the broker directly and ask for their regulatory information. A legitimate broker should be willing and able to provide clear details about their regulatory status.

Read more about Best regulated forex brokers.

What Is Leverage in Trading?

Leverage allows traders to control a much larger position size with only a fraction of its value. Instead of paying the full cost of a trade, you deposit a smaller amount called margin, and the broker lends you the rest.

For example, with 1:500 leverage, $100 of your own capital can open a $50,000 trade. This magnifies both profits and losses, making leverage a powerful but high-risk tool.

In the forex and CFD markets, leverage is one of the main reasons traders can access global markets with relatively small deposits. However, it also means your account equity can fluctuate rapidly, so understanding how leverage works is essential before trading with it.

Find your best fit with our guide Best CFD brokers.

What Is Considered “High” Leverage?

In retail trading, leverage of 1:100 and above is typically considered high. Anything from 1:300 to 1:500 is viewed as very high, while extreme models such as 1:1000 or 1:3000 are offered only by offshore brokers.

Most regulators classify 1:500 as “high risk” because even a small market movement can significantly impact your account balance. This is why leverage above 1:30 is prohibited in many tightly regulated markets, and only traders opening accounts with offshore or non-restricted entities can access 1:500 leverage.

Learn more about Best high leverage forex brokers.

Benefits of High Leverage

• Lower Capital Requirements: High leverage reduces the amount of margin you need to open a trade. This is useful for traders with smaller accounts who want access to larger positions or diversified portfolios.
• Amplified Profit Potential: Leverage boosts the impact of small price movements. Even a few pips can generate meaningful profit when trading with higher exposure — something scalpers, day traders, and algorithmic traders often rely on.
• More Flexibility in Position Sizing: With 1:500 leverage, traders can open micro and mini lots more efficiently and fine-tune their risk across multiple assets.
• Useful for Short-Term Strategies: High leverage is especially beneficial for strategies that target small but frequent price movements — such as scalping, breakout trading, and news trading — where speed and precision matter.

Discover our list of Best forex brokers for scalping.

Risks of High Leverage

• Amplified Losses: Just as profits grow faster with leverage, losses grow faster too. A small move against your position can wipe out a large portion of your account when trading highly leveraged positions.
• Higher Probability of Margin Calls and Stop-Outs: High leverage reduces the distance between your entry price and the point where your account runs out of margin. Volatile markets or sudden spikes can trigger a stop-out long before your trade has a chance to recover.
• Emotional and Behavioral Risks: Because you can open large positions with minimal capital, traders may feel tempted to overtrade or take on excessive risk. This often leads to poor decision-making and emotional trading.
• Not Suitable for Beginners: High leverage requires experience in position sizing, risk management, and emotional control. New traders may struggle to manage positions effectively at 1:500.

Check out Best forex broker for beginners.

Leverage Caps by Jurisdiction — Which Regulators Allow 1:500 Leverage

Financial regulators around the world impose leverage limits to protect retail traders. Most top-tier regulators restrict leverage to much lower levels than 1:500.

Tier-1 Regulators (Strict — Do NOT Allow 1:500)

• FCA (UK) – Max 1:30
• ASIC (Australia) – Max 1:30
• CySEC (EU) – Max 1:30
• CFTC/NFA (US) – Max 1:50 for major forex pairs

Tier-2 Regulators (Moderate — Often Allow 1:200 to 1:500)

• FSCA (South Africa) – Brokers commonly offer up to 1:500
• DFSA (Dubai) – Depends on classification and broker structure

Tier-3 / Offshore Regulators (Flexible — Commonly Allow 1:500+)

These jurisdictions allow brokers to offer 1:500 leverage to retail traders:

• FSA Seychelles
• FSC Mauritius
• VFSC Vanuatu
• IBFC Labuan (Malaysia)
• Comoros MISA

These entities make 1:500 leverage accessible, but they usually provide fewer investor protections. Because risks are higher, traders should carefully evaluate safety features like negative balance protection, segregated accounts, and dispute resolution mechanisms.

Learn about how to protect yourself in our dedicated guide

Risk Management Strategies When Trading with High Leverage

Trading with 1:500 leverage demands discipline and a structured risk management plan. Here are essential strategies:

1. Use Small Position Sizes: Start with micro or nano lots. Even with huge leverage available, limit your exposure so a single trade cannot damage your account.
2. Always Use Stop-Loss Orders: Place stop-losses based on market structure (e.g., below support or above resistance) rather than fixed pip distances. This helps manage risk without choking your strategy.
3. Risk Only 1–2% of Your Capital Per Trade: High leverage magnifies outcomes, so keeping risk per position small protects your account from rapid drawdowns.
4. Avoid Using the Full 1:500: Just because 1:500 is available doesn’t mean you should use it. Many professional traders operate at effective leverage levels of 1:5 to 1:20.
5. Focus on Liquid Markets: Major forex pairs (EURUSD, GBPUSD, USDJPY) have tighter spreads and less slippage, making them safer for high-leverage trading.
6. Trade During Active Sessions: London and New York sessions typically offer better liquidity and smoother price action — reducing unpredictable spikes.
7. Keep an Eye on Economic Events: High-impact news like NFP, CPI, or FOMC meetings can cause extreme volatility. Reduce leverage or stay out of the market entirely during these times.
8. Monitor Margin Level Closely: Keep your margin level well above the stop-out threshold. A good buffer is 300–500% to avoid unexpected liquidations.

Meet Our Experts

The forex and CFD analysis team at FXEmpire is made up of seasoned trading industry professionals and experienced financial journalists. Our experts have been featured on leading financial platforms, including Investopedia and Forbes, and bring extensive hands-on trading experience to their work.

FAQ