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Best High Leverage Forex Brokers

The forex market is one of the best markets for investors who like to trade with higher leverage. Even retail investors from locations within the EU or Australia, where the limit is 30:1 for major pairs, have a lot more leverage to work with than, let us say, those who focus on stocks. Then, there is the fact that the leverage of FX pros can be far higher than even this, and the limits are often in the hundreds or even in the thousands. As tempting as it can be, it is also important for investors to be cautious when necessary and remember that leverage is a double-edged sword. The higher the potential profits, the more impactful the possible losses.

How Forex Trading Works for Traders and Brokers

Forex TradingMaking a forex trade involves the exchange of one currency for another, and this is done in pairs. There are three main types of currency pairs, the first of which are the so-called majors, such as the EUR/USD and GBP/USD. There is also a category dubbed commodity forex pairs, which refers to pairs that are strongly correlated with commodities such as oil, agricultural resources, and the like, and such pairs include the CAD/USD and the AUD/USD. Finally, we have minor currencies the likes of the NZD/JPY pair.

If you plan to trade currencies, it is crucial to understand the concept of leverage so that you can use it to your advantage, given that it is the only way to make significant profits as a forex trader. Leverage refers to the money you can borrow from a broker in order to execute a transaction with funds you do not have. For instance, if a trader has a capital of $5,000 and a leverage ratio of 5:1, this trader can now use $25,000 in order to execute their trade. This means that the profits they stand to make off of this trade will be magnified, but the same can be said about the potential losses as well. This is why leverage is known to carry a lot of risks, but this is manageable so long as you are careful.

Leverage is typically based on the initial margin, and sometimes brokers will simply list the margin available for an instrument, as opposed to the leverage itself. For instance, if you see an instrument that has a margin of 5%, this means that the maximum leverage available is 20:1. The lower the margin, the higher the leverage, and to put things into perspective, the leverage ratio of a trade with 0.50% margin would be 200:1.

Top Forex Trading Brokers With High Leverage

choosing a brokerChoosing a great broker is perhaps one of the most important decisions a trader can make. The platforms and tools available, along with the markets themselves and the leverage you will be able to use, all point to just how much your broker will affect your performance as an FX trader.

Sadly, it has become increasingly difficult for ambitious retail traders in certain locations to find brokers with high leverage limits. Nonetheless, there are options for retail traders out there, and professionals have even more brokers to choose from as we will see below.

Related Topics


1. How much leverage should I use when I trade currencies?

This will depend on how risk-averse you are as a trader and how experienced you are with using leverage in general. If you are still new to forex trading and the concept of leverage in and of itself is still somewhat alien to you, it is better to stick to a low leverage ratio at first. In general, many agree that a beginner should not exceed a 10:1 ratio, and going even lower is recommended.

2. How long will it take to fund my broker account?

It is advisable that you verify your account before you deposit any money, and verification can take between an hour and a day depending on the broker. Once verified, the funding process itself depends on the deposit method. Credit and debit card deposits are typically instant, while funding via digital wallets can take several hours. Wire transfer, on the other hand, can take from several days to a week.

3. I don’t want to download trading software on my computer, is there an alternative?

Yes, instead of installing the desktop client, you can use the web trader version of your platform of choice. In addition, you can also use a web trader on your smartphone device or install the platform app via Google Play or the App Store.

4. Are there any requirements I need to meet in order to withdraw money from my account?

If your broker is reputable, you will need to undergo account verification before you can withdraw any money from your account. Additionally, you must use the same banking solution you used to fund your account, and if this is not possible, you will need to contact the broker for assistance. Finally, certain payment solutions have a minimum requirement and a maximum withdrawal limit.

5. Is there a difference between live and demo accounts?

Yes, seeing as you do not use real money when you trade with a demo account. Instead, you are granted a certain amount of virtual funds, and you can trade with said funds without using real money. This is excellent for training if you are a beginner. With live accounts, on the other hand, trades are conducted with your actual money.