| Broker | Features |
|---|---|
  FeaturedGo to XTB | Excellent 24-hour customer service. More than 3000 instruments to trade. Regulated broker.(*) Warning: Your capital is at risk. 79% of retail CFD accounts lose money. Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: xStation5, iOS App, Android App. Execution: Market Maker / STP Regulation:  FCA, CNMV and IFSCWeb Page: https:/www.xtb.com |
 FeaturedGo to XM Group | Bonus of $30 without deposit and bonuses of up to $5,000 per deposit. Trade Forex with ultra-low spreads.(*) Clients registered with XM Group's EU-regulated entity do not have access to the bonds. Demo Account: Yes, unlimited Minimum Deposit: 5 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: CySEC, FSC and ASICWeb Page: https://www.xm.com |
 FeaturedGo to Pepperstone | Very low spreads on over 1,200 instruments. 24/7 support, fast execution and no requotes.(*) Warning: Between 74-89 % of retail investor accounts lose money when trading CFDs. Demo Account: Yes Minimum Deposit: 200 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader, TradingView. Execution: STP / NDD Regulation: FCA, ASIC, CySEC, BaFin, DFSA, CMA and SCBWeb Page: https://www.pepperstone.com |
 Go to IC Markets | True ECN account with ultra-low spreads and ultra-fast execution designed for scalping and automated trading systems. Demo Account: Yes Minimum Deposit: 200 $ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: ECN Regulation: ASIC, CySEC and FSAWeb Page: https://www.icmarkets.com |
 Go to IQ Option | $1 minimum investment. Powerful and intuitive trading platform. Fast withdrawals.(*) Warning: Your capital might be at risk. Demo Account: Yes, unlimited Minimum Deposit: 50 €/$ Trading Platforms: Proprietary Platform, iOS App, Android App. Execution: Market Maker Regulation: CySECWeb Page: https://www.iqoption.com |
 Go to Exness | Low spreads as low as 0.0 pips. No swaps on most instruments. Instant withdrawals. Demo Account: Yes Minimum Deposit: 10 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker / ECN Regulation: FCA, CySEC, FSCA, FSC, CBCS, FSA and SDLWeb Page: https://www.exness.com |
 Go to AvaTrade | One of the most regulated brokers worldwide (in 9 different jurisdictions). Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, iOS App, Android App. Execution: Market Maker Regulation: Central Bank of Ireland, ASIC, BVI, FSCA and FSAWeb Page: www.avatrade.com |
 Go to Eightcap | Demo Account: Yes Minimum Deposit: 100 $ Trading Platforms: MetaTrader 4, MetaTrader 5, TradingView. Execution: STP / ECN Regulation: ASIC and SCBWeb Page: https://www.eightcap.com |
 Go to Axi | Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: MetaTrader 4. Execution: STP / ECN Regulation: FCA, ASIC, FSA and DFSAWeb Page: https://www.axi.com |
 Go to RoboForex | $30 welcome bonus with a minimum deposit of $10 and bonuses up to $50,000 per deposit. Demo Account: Yes, unlimited Minimum Deposit: 0 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, iOS App, Android App. Execution: STP / ECN Regulation: FSCWeb Page: https://www.roboforex.com |
 Go to FP Markets | Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader, IRESS. Execution: ECN Regulation: ASIC, CySEC and FSPWeb Page: https://www.fpmarkets.com |
 Go to eToro | Buy stocks without commission. Automatically copy the best investors with the eToro CopyTrader tool.(*) Warning: 77% of retail CFD accounts lose money.
Demo Account: Yes, unlimited Minimum Deposit: 200 $ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC and ASICWeb Page: https://www.etoro.com |
 Go to OANDA | Demo Account: Yes, unlimited Minimum Deposit: 0 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Non Dealing Desk Regulation: FCA, ASIC, NFA, IIROC, BVI FSCWeb Page: https://www.oanda.com |
UPDATE: New leverage trading regulations approved by the European Securities and Markets Authority (ESMA) that came into force on 1 August 2018 limit the leverage available to retail clients of EU-based brokers. The maximum leverage available varies between 1:30 and 1:2 depending on the volatility of the underlying asset:
1:30 for major currency pairs.
1:20 for secondary currency pairs, gold and major indices.
1:10 for commodities other than gold and for secondary indices.
1:5 for equities and other securities.
1:2 for cryptocurrencies.
These limits do not affect professional clients or brokers operating from countries outside the European Union.
What is leverage?
Leverage is the financial term that refers to the ratio between equity capital and credit obtained when making an investment. It is a concept that is directly related to the use of debt to finance an investment operation. By means of leverage, the investor deposits an amount of collateral and the broker offers him a proportionally larger amount of funds as a loan so that he can open positions with a much larger volume than he could do with his capital alone. The purpose of using financial leverage is to multiply profits in absolute terms, since the same profitability obtained in the operationis applied to a larger capital.
What are the advantages and disadvantages of leverage?
With leverage it is possible to open positions of a much larger volume than the amount of money you have available in your trading account. It is one of the most important tools, both on the Forex market (What are the best forex brokers?) and when investing with CFDs, because it is practically impossible to make significant profits without it: without an investment with a considerable volume it is difficult to make an acceptable profit in the short term, as the trade needs to mature on the basis of a larger market fluctuation. In other words, the short-term movements are very small, so it is necessary to invest larger sums of money.
But you must bear in mind that it is also a double-edged sword: A high leverage will allow you to make significant profits if everything goes in your favour, since you are trading the market with a much larger amount than you deposit. Therefore, the profits you are going to reap are those of the total of the operation and not those generated only with your capital. On the other hand, this increase in capital also considerably increases the risks and exposes you to greater losses if you are not right and the trades go against you.
For example, a leverage of 1:20 means that for every euro you put up as collateral, from your own capital, you can open a market position of a total of 20 USD (if you put up 100 USD as collateral, you can open a position of 2,000 USD). In this case, the percentage of equity is 5%.
The lower the percentage, the higher the level of risk, because you are trading with higher leverage. For example, in the case of a 1:30 leverage, the equity ratio is 3.33%. In contrast, at a leverage of 1:5, it is 20%. Also, the ability to make a profit is considerably reduced when trading with a lower leverage. In other words, the higher the leverage, the greater the risk, but also the greater the potential gains.
It is important to understand the risks; and, if you are a beginner, not to be seduced by high maximum leverage levels, which can lead to greater losses and debt. Exercise caution and choose to increase leverage gradually as you gain more knowledge and experience in trading.
Until recently, there have been online brokers in Europe offering maximum leverage levels of 1:200, 1:500 or even 1:2000. Following recent regulatory changes, this level has been greatly limited for retail clients to a maximum of 1:30 for trading the major currency pairs in the Forex market (and even lower for more volatile financial instruments). In the United States, the CFTC (Commodities Futures Trading Commission) regulation prevents the use of leverage higher than 1:50. As a general rule, you can choose the one you think is most convenient, as well as change it according to your needs.
Which online brokers have the highest leverage?
After having tested and analysed numerous online brokers, in the table above you can find the brokers that we consider to be the most recommendable for investing, taking as a criterion the financial leverage they offer. Please note that the maximum leverage level indicated may only be available for certain investment instruments and on certain trading accounts of each broker.
References and sources:
- Forex Leverage: A Double-Edged Sword
- What is Leverage in Forex? Forex Leverage Explained
- Leverage and Margin Explained
