Trading on the foreign exchange with leverage is a great way for individuals with specialized knowledge and financial acumen to grow their capital. However, sometimes traders who are aiming higher will need a little assistance with the initial capital to make a particularly profitable trade happen.
Through the use of high leverage Forex brokers, traders can borrow large sums to use as initial capital for their trades.
This makes it possible for them to make larger volumes of trades and open them up to greater return potential. On the flip side, it also exposes them to a greater risk for losses.
High leverage trading on the foreign exchange market is strictly regulated by a variety of financial authorities and even restricted in some regions, so it’s important to do some research ahead of time and find a reputable broker you can use.
Best Forex Brokers with High Leverage
- FBS – (1:3000)
- XM – (1:1000)
- HF Markets (1:2000)
- Pepperstone (1:400)
- Skilling (1:400)
- BlackBull Markets
- IC Markets
XM (Leverage up to 1:1000)
XM.com is a highly reputable Forex broker that is recommended by heaps of financial advisors and other professionals in the field from around the globe. With headquarters in Cyprus, Australia, and Belize, they are able to provide their services to all sorts of clients all over the world.
For traders looking to use high leverage ratios, XM.com’s offerings certainly give the competition a run for their money. With the ability to trade at leverage ratios up to 1:1000, XM clients have the potential to earn quite a lot of profit on their trades. This company is also known for its extremely low deposit requirements.
The main drawback is that clients based outside of the European Union have certain limits on what they can do with their portfolios.
HF Markets (Leverage up to 1:2000)
HotForex is without a doubt one of the leading high leverage foreign exchange brokers to date. Based in Cyprus, they are regulated by a variety of reputable financial and legal entities both in Europe and abroad, so they are considered by experts to be a very safe institution.
HotForex offers incredibly high leverage ratios, with some clients using up to 1:1000. Plus, they charge no fees on deposits and have a relatively low minimum deposit requirement to get started. Many clients love the convenience and accessibility Forex offers, especially when paired with the potential to make plenty of money on returns.
BlackBull Markets offers trades at a competitive leverage ratio of 1:500. However, their relatively high minimum deposit requirement of $200 USD turns some clients away.
FXCC offers leverage ratios of up to 1:500 and requires no minimum deposit amount. However, this broker only used the MT4 platform, which is seen as an inconvenience by many clients.
FBS requires a minimum deposit of only $1 USD and can be used on four different trading platforms. Unfortunately, their maximum leverage ratio is only 1:30, so they’re not ideal for clients looking to make high leverage trades.
Should Novices Use High Leverage Ratios?
Those who are new to foreign exchange trading are putting themselves at greater risk for losses by using higher leverage ratios when they’re still relatively unfamiliar with the market, so this practice is generally not recommended for beginners.
If you’re just getting started with Forex trading, look for a broker that markets to beginners.
More often than not these institutions can provide you with training and educational content that will teach you what you need to know to move on to making bigger and better trades in the future.
Bad News for US and European Traders
Unfortunately for any Europeans or Americans looking to grow their capital significantly through the foreign exchange market by making high leverage trades, there aren’t a whole lot of brokers to choose from.
This is because margin trading is severely regulated in both United States and European Union, to the point that most Europe/U.S.-based brokers do not offer this service.
Traders who are absolutely determined to trade with high leverage ratios can look into using an offshore broker. However, the risks associated with these institutions have led many professionals in the financial industry to be wary of them, and they are seldom recommended.