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- Main features of the best 1:1000 Leverage Forex brokers
- What Is Financial Leverage?
- How Does Leverage Work in Forex?
- Is 1:1000 Leverage Suitable for You?
- Pros and Cons
Leverage is essential in forex trading as it enables traders to gain greater market exposure with less capital. It involves borrowing funds from brokers to open larger positions. Many experienced traders refer to leverage as a ‘double-edged sword’, as it can amplify both one’s potential profits and losses. As a result, leverage is considered one of the most appealing yet riskiest tools available in forex trading.
The most common leverage ratios vary across online brokers, depending on regional regulations, asset classes and client categorisation (retail or professional). When using 1:1000 leverage, one can trade $1,000 for every dollar in their balance.
If you are looking for higher leverage ratios, dive into our top list of the best forex brokers offering 1:1000 leverage and check the table comparing their features below.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro61% of retail investor accounts lose money
XM Group72.82% of retail investor accounts lose money
FBS72.12% of retail investor accounts lose money
Admirals73% of retail investor accounts lose money
InstaForex75.02% of retail investor accounts lose money
Our ranking system is based on several aspects, including regulation, trading costs, Trustpilot rating, range of tradable markets, trading platforms, and deposit and withdrawal methods. Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.
Main features of the best 1:1000 leverage forex brokers
- Brand
- Trading platforms
- Minimum deposit
- Regulations
- Trading instruments
- Spreads
- Leverage for Forex CFDs
- Leverage for Crypto CFDs
- Leverage for Indices CFDs
- Deposit methods
- Withdrawal Methods
- Commission per Lot
- Contact details
The foreign exchange market is the world’s largest financial marketplace, with a daily trading volume reaching $7.51 trillion, according to the BIS Triennial Central Bank Survey of 2022. Once available only to banks and other financial institutions, trading has become easily accessible to individual traders thanks to online brokers.
With forex trading, traders buy one currency while selling another to potentially profit from their price fluctuations. Leverage can amplify the chances of capitalising on these value shifts, with forex brokers offering ratios as high as 1:1000.
When trading with leverage of 1:1000, you must always be careful because it involves high risk. Although there is a chance to earn solid profits, this kind of leverage can also work against you. Using such high leverage can be extremely risky, as even a small market movement against your position can lead to significant losses, which would severely impact your account balance. Sometimes, a small price movement against a trader’s position can wipe out their entire investment.
What is financial leverage?
Leverage allows traders to use borrowed funds and increase their buying power and potential returns. It enables them to trade with more money than they have in their accounts, amplifying the potential for both gains and losses. For example, with 1:1000 leverage, a trader with $1,000 in their account can trade up to $1,000,000 worth of a given financial instrument.
When using high leverage, it is essential to implement proper risk management techniques, such as stop-loss orders and position sizing, to minimise potential losses and protect capital. A stop-loss order automatically closes a trade at a specified price, while position sizing involves determining the appropriate amount of money to trade based on the trader’s account size and risk tolerance.
It is also important to understand that leverage can lead to overtrading, as traders may be tempted to make more and larger trades than they would otherwise be able to. This increases the risk of losses, as it raises the probability of making incorrect predictions about the movement of currency values. Margin calls can also occur when a broker requires a trader to deposit additional funds into their account because the value of their open trades has fallen below a certain level.
How does leverage work in forex?
As explained above, the function of leverage is to enhance traders’ buying power and increase their market exposure. Forex brokers offer their customers the opportunity to attain higher returns with smaller initial capital.
Leverage is a ratio that compares a trader’s capital to the funds borrowed from a broker. For instance, a 1:1000 leverage ratio allows a trader to control a position that is a thousand times larger than their balance. Thus, a person with a $1,000 account balance can open a position with a notional value of $1,000,000. As appealing as this may sound, traders must bear several important considerations in mind, with brokers’ margin requirements being at the forefront.
While closely related, leverage and margin are not the same thing. Leverage is the tool that allows traders to control a much larger position in the market with a relatively small amount of capital. It is essentially a loan from your broker. In contrast, margin is the actual amount of money a trader must deposit into their balance to open and maintain a leveraged position. It acts as collateral for the borrowed funds. In short, leverage determines the potential size of your position, while margin is the initial capital required to open that position.
Leverage is typically expressed as a ratio (1:1000), while margin is often represented as a percentage. For example, a 1:1000 leverage ratio is equivalent to a 0.1% margin requirement. This means that a trader would need only $1 to control a position in EUR/USD with a notional value of $1,000.
Calculating the margin required for a trade is straightforward, as you simply divide 1 by the leverage ratio. For example, with 1:1000 leverage, the margin requirement is calculated as 1 / 1,000 = 0.001 × 100 = 0.1%. Let us elaborate further with a more concrete example. To trade one standard lot (100,000 units) of EUR/USD at a price of 1.04902 with 1:1000 leverage, you would need a margin of $104.90. This is calculated as follows:
Margin required = (100,000 units x 1.04902) / 1,000 = $104.90
Many brokers also provide margin calculators to help you determine the exact deposit needed for a specific trade.
Beginner traders should not underestimate the risks associated with using high leverage, as it can lead to substantial losses. When using high leverage, even minor market fluctuations can wipe out their entire balance, or, even worse, losses can exceed their initial capital. Due to these risks, financial regulators such as the FCA, ASIC and CySEC impose maximum limits on the leverage that retail traders can access for forex pairs and other financial instruments. Retail traders in Europe and Australia can access maximum leverage of 1:30 for major pairs and 1:20 for non-major currency pairs.
Traders are advised to open accounts with brokers that provide negative balance protection, effectively preventing them from losing more money than their initial account balance. In addition to this customer protection mechanism, many brokers implement margin close-outs to protect traders from incurring further losses whenever their balance falls below the required minimum.
Other options include stop-loss orders, which close positions when a predetermined loss is incurred. Last but not least, portfolio diversification is a smart trading decision, as it enables traders to spread risk across different financial instruments and not rely on a single trade.
Example of a stop-loss order with 1:1000 leverage
We shall illustrate how stop-loss orders work with a concrete example. Suppose you have a trading account with a $1,000 balance and you decide to open a position of one standard lot in EUR/USD. You can control a position worth $1,000,000 ($1,000 x 1,000) with 1:1000 leverage.
You enter a buy position at 1.10000 and set a stop-loss order at 1.09900. Your stop-loss is 10 pips away from your entry price. Each pip for a standard lot of EUR/USD is worth approximately $10. If the market moves against you and hits your stop-loss price, your loss would equal 10 pips x $10 per pip = $100.
In this scenario, your stop-loss order would automatically close the position, limiting your loss to $100, which is just 10% of your initial $1,000 account balance. Without a stop-loss, a small market movement could have a catastrophic effect on your account due to excessive leverage.
Is 1:1000 leverage suitable for you?
When considering whether a 1:1000 leverage ratio is right for you, it is important to consider several factors. First, this level of leverage is exceptionally high and may not be available everywhere. Some jurisdictions impose strict limits on the maximum retail leverage that can be offered for different financial instruments.
However, traders who meet certain criteria to be classified as professional clients can often access much higher leverage ratios. If you meet the requirements, there are several valid reasons to consider opening an account with a 1:1000 leverage broker.
High leverage allows traders to open significant positions with minimal capital, which is particularly useful for traders with limited account balances.
High leverage enables traders to open multiple trades simultaneously, which can be beneficial for those who use strategies involving multiple positions or scalping techniques.
High leverage enables traders with high risk tolerance who utilise tight stop-losses to open larger positions while still managing their risk effectively and without exceeding margin requirements.
This leverage ratio is particularly beneficial for traders who follow signals or copy strategies that are designed to operate with high leverage.
Pros and cons of 1:1000 leverage forex trading
Let us now explore the benefits and drawbacks of using a 1:1000 forex broker. By evaluating the potential advantages and disadvantages of using 1:1000 leverage in the forex market, traders can make informed decisions.
Pros of 1:1000 leverage forex trading
- Potential for accumulating greater profits
Without a doubt, the main benefit of trading with 1:1000 leverage is the enhanced potential for greater profits. Even nominal price movements in currency pairs can result in notable gains. The risk of greater losses, however, also increases. Therefore, traders are advised to apply proper risk management strategies.
- Greater market exposure
With a high leverage ratio such as 1:1000, traders have access to larger positions that would not otherwise be available to them due to their limited trading budget.
- Lower initial capital requirements
As you might expect, a higher leverage ratio directly translates to lower initial capital requirements. Compared with brokers that offer lower leverage, a 1:1000 broker allows you to enter the market with a significantly smaller initial deposit. However, it is crucial to use sound risk management strategies to avoid losing your entire balance or incurring losses that exceed your initial investment.
- Portfolio diversification
High-leverage positions that require less capital enable traders to diversify their portfolios and spread their risk across different currency pairs or explore other asset classes. Portfolio diversification can be instrumental in lessening the impact of unfavourable market conditions.
Cons of 1:1000 leverage forex trading
- Magnified risk of losses
While 1:1000 leverage offers the potential for significant profits, it is essential to remember that it also magnifies the risk of substantial losses. With such a high leverage ratio, a market movement of just 0.1% against your position could be enough to completely wipe out your initial balance.
- Margin calls and position liquidation
If your account balance falls below the required minimum, it could trigger a margin call. This is a request from your broker for additional funds to either cover losses or keep your position open. If you fail to add the necessary funds, your broker may automatically liquidate your positions, which can lead to significant and potentially catastrophic losses.





