Are you into High Leverage trading? If you are, we are sure that you will like to know who are the best high leverage brokers today. Or maybe you have no idea about high leverage trading but would like to engage in such trades moving forward; in this article, we will educate you about high leverage trading and which brokers to pitch your tent with. So let’s dive right in.
In This Guide
ASIC, CBI, BVI, FSCA, IIROC, FFAJ, JFSA, ADGM FRSA
up to 40% bonus
$10 000 demo
FCA, ASIC, CIMA, SIBL
up to 50% bonus
VFSC, FSC, IBFC
FCA, IIROC, JFSA, NFA, CIMA, FSA, ASIC, CFTC
up to $5000 bonus
High leverage brokers, or leverage brokers as they are often called, are brokers who allow traders to trade on their platform using a leverage strategy. Leverage strategies rely on borrowed capital as a funding source. So a trader with a minimal amount can borrow capital from the broker to help him increase his earnings.
Leveraged trading is all about expanding your initial trading amount by a certain number depending on the leverage opportunities provided by the broker on whose platform you are trading. The higher the available leverage offered by the leverage broker, the higher your earning potential but also, the higher your risks. Some brokers offer a maximum leverage of 1:100, while some may offer more.
The maximum leverage offered by brokers is not all theirs to give, though, as they are limited by regulations. For instance, in the US, leverage brokers are limited by law to a maximum of 50:1 leverage and nothing more. However, in countries like Australia and most parts of Europe, brokers can offer a maximum of 500:1 leverage.
Now let’s look at the best high leverage brokers online and what they have to offer.
Many traders consider Forex.com to be the best high leverage broker online because of its amazing offers, incentives and tools. Due to the limitations placed by US regulators on leverages beyond 50:1, Forex.com has become quite popular for traders outside the US who trade the US dollars. This broker offers more than 70 currency pairs with a margin of 2% for major pairs. Other non-US dollars and Euro pairs get a margin of 3%. Forex.com offers three different accounts, namely, Standard, Direct Market and Commission accounts.
Their spread is quite low, with a $5 commission placed per 100,000 units.
Another very good high leverage broker is CedarFx. This broker offers two types of accounts, namely the Eco Account and the Commission Account. You enjoy a wide range of trading tools with very low commissions of $1 on Eco Accounts, with the proceeds used to fund the planting of 100,000 trees across the globe.
CedarFx offers a very high leverage of 200:1 for commodities and indices while you enjoy 100:1 leverage on Cryptocurrencies and 20:1 in stocks. CedarFx also allows stock speculation, so you can grow your account balance relatively quickly if you are good at reading the market.
If you live outside the US, AVATrade is probably one of the best high leverage brokers you may want to try out. Their platform is available to traders across 6 continents, namely Australia, Japan, the British Virgin Islands, Africa, Europe and the UAE. They operate a 24-hour multilingual customer support desk, but that is not all you enjoy. This broker offers a host of trading instruments to simplify your trading as well as several other services.
Their maximum leverage is 400:1, which is quite high, so you can trade Forex, commodities, indices, stocks and cryptocurrencies. This broker also offers several trading platforms you can pick from, some of which are WebTrader, AvaOptions, AVATradeGo and the usual MetaTrader4 and MetaTrader5 platforms.
IG offers maximum leverage of 500:1. This broker allows asset speculation across global markets and offers high leverages for those who want to increase their gains quickly in a volatile market situation. IG is highly rated because it simplifies the trading process. There are about 80 currency pairs you can pick from, and the spreads are very tight, starting at 0.8 pips.
Also, IG offers massive liquidity and keeps its leverage open all through the trading week.
When reviewing the best high leverage brokers online, no list will be complete without including this Australian broker. Pepperstone is one of the best brokers, and its platform is a favorite for many forex traders. Pepperstone offers different leverages in line with the prevailing regulations of the region where they are active.
For instance, in ASIC regulated regions, the maximum leverage offered is 500:1, for traders in DFSA regions, that falls to 50:1 and 30:1 for FCA regions (UK). What this means in dollar terms is that for every $1 you stake on a trade, Pepperstone will multiply it by the leverage you pick. So let’s say you pick leverage of 30:1, that translates to $30 for your $1. Pepperstone has MetaTrader4, MetaTrader5, cTrader, RoboX and Mirror Trader platforms.
There are so many high leverage brokers online today offering traders different incentives, but these incentives come with risks. Before you decide on a broker, make sure you understand the fine print of their terms and conditions, so you don’t expose your investment to risk.
A high leverage broker is one that offers traders higher leverages to boost their earnings. Brokers who offer 30:1 leverage and above are generally classified as high leverage brokers.
This means when a trader goes beyond the approved equity margin. Doing so will result in a negative account balance.
It depends on your preference. However, high leverage has its potential risk and reward. Increasing your leverage allows you to make big moves even if you have little funds, but it also increases your risks too. If your move goes wrong, you could lose all your money.
The maximum leverage we’ve seen so far is 500:1
The maximum leverage for US traders is 50:1