Best High Leverage Brokers

  Author: Eduardo Montero - Updated: 5 January, 2023 No Comments

WARNING: Regulations approved by the European Securities and Markets Authority (ESMA) limit the maximum leverage available to retail clients of EU-based brokers to 1:30. More information below the comparison table. Such limits also apply in other countries such as Australia,... Check the conditions on the broker's website.

Broker	Features
Featured Go to XTB	Excellent 24-hour customer service. More than 3000 instruments to trade. Regulated broker. OPEN ACCOUNT (*) Warning: Your capital is at risk. 80% 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 IFSC Web Page: https:/www.xtb.com
Featured Go to Pepperstone	Very low spreads on over 1,200 instruments. 24/7 support, fast execution and no requotes. OPEN ACCOUNT (*) 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 SCB Web Page: https://www.pepperstone.com
Featured Go to eToro	Buy stocks without commission. Automatically copy the best investors with the eToro CopyTrader tool. OPEN ACCOUNT (*) 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 ASIC Web Page: https://www.etoro.com
Go to XM Group	Bonus of $30 without deposit and bonuses of up to $5,000 per deposit. Trade Forex with ultra-low spreads. OPEN ACCOUNT (*) 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 ASIC Web Page: https://www.xm.com
Go to IC Markets	True ECN account with ultra-low spreads and ultra-fast execution designed for scalping and automated trading systems. OPEN ACCOUNT Demo Account: Yes Minimum Deposit: 200 $ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: ECN Regulation: ASIC, CySEC and FSA Web Page: https://www.icmarkets.com
Go to AvaTrade	One of the most regulated brokers worldwide (in 9 different jurisdictions). OPEN ACCOUNT 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 FSA Web Page: www.avatrade.com
Go to IQ Option	$1 minimum investment. Powerful and intuitive trading platform. Fast withdrawals. OPEN ACCOUNT (*) Warning: Your capital might be at risk. Demo Account: Yes, unlimited Minimum Deposit: 50 €/$ Trading Platforms: Proprietary Platform, iOS App, Android App. Execution: Market Maker Regulation: CySEC Web Page: https://www.iqoption.com
Go to Exness	Low spreads as low as 0.0 pips. No swaps on most instruments. Instant withdrawals. OPEN ACCOUNT Demo Account: Yes Minimum Deposit: 10 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker / ECN Regulation: FCA, CySEC, FSCA, FSC, CBCS, FSA and SDL Web Page: https://www.exness.com
Go to Eightcap	OPEN ACCOUNT Demo Account: Yes Minimum Deposit: 100 $ Trading Platforms: MetaTrader 4, MetaTrader 5, TradingView. Execution: STP / ECN Regulation: ASIC and SCB Web Page: https://www.eightcap.com
Go to Axi	OPEN ACCOUNT Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: MetaTrader 4. Execution: STP / ECN Regulation: FCA, ASIC, FSA and DFSA Web Page: https://www.axi.com
Go to RoboForex	$30 welcome bonus with a minimum deposit of $10 and bonuses up to $50,000 per deposit. OPEN ACCOUNT Demo Account: Yes, unlimited Minimum Deposit: 0 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, cTrader, iOS App, Android App. Execution: STP / ECN Regulation: IFSC Web Page: https://www.roboforex.com
Go to FP Markets	OPEN ACCOUNT Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader, IRESS. Execution: ECN Regulation: ASIC, CySEC and FSP Web Page: https://www.fpmarkets.com
Go to OANDA	OPEN ACCOUNT Demo Account: Yes, unlimited Minimum Deposit: 0 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Non Dealing Desk Regulation: FCA, ASIC, NFA, IIROC, BVI FSC Web Page: https://www.oanda.com

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

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About the author: Emontero

I am Eduardo Montero. Computer scientist by profession and passionate about online trading with more than 10 years of experience in the financial markets. I publish articles on various financial websites and I have created this website in order to help those interested in the world of trading. The content is based on my personal experience as a trader, learning from the successes and above all the mistakes I have made over the years and always prioritising risk control of operations as, from my point of view, it is the only way to achieve sustainable results over time.

The content of this website is purely informative, it should not be considered as investment advice and we do not offer financial advisory services. You should bear in mind that you are the one who will make your financial decisions and you will be responsible for the outcome of those decisions.