Leverage is a vital tool which can change the trading direction for you or against you in this competitive forex trading market. Forex market is full of forex brokers with low leverage these days that's you should read forex broker reviews. But no one wants a big infusion of cash capital to start their journey as a forex trader. Therefore, they want the right broker and the right tools for understanding leverage meaning in forex. Top 10 forex trading platforms with high leverage forex brokers are truly the right tools for the forex traders. This is why, when people find hundreds of forex brokers with low forex leverage regulation, they look for top forex brokers with high leverage in the market. If you are also one of them, then this article will be pivotal for your trading journey by helping you choose the top high leverage forex brokers.
What does Leverage Meaning in Forex?
There is a word the traders often use along with leverage meaning in forex. The word is “margin” and the traditional brokers of US often offer their clients margin forex trading. The concept of margin refers to the broker who will lend a certain amount of money to the trader for purchasing some extra stocks and when the loan is repaid, then the trader will start making money.
Top Forex Brokers with High Leverage
The margin rate is different from place to place for us forex broker with highest leverage. But most of the broker houses charge 5%-10% of the money they lend to their clients about forex leverage regulation. Depending on the amount of money, margin charges vary. Clients want to borrow money to purchase stocks from the broker houses to raise the leverage. Us forex broker with highest leverage also considered as the biggest edge of forex trading.
Now, leverage meaning in forex refers to the amount of borrowed money involved in a forex trade. Mostly forex brokers offer 2:1 leverage to their clients and investors. So, if you want to trade a capital of $100, then you will need to have $50 in your trading account. But, there will always be a risk added to your trade because of leverage. If things go otherwise, you will lose your cash capital as well as you will owe the borrowed money to your forex broker.
How Does Leverage Work?
High leverage is not always a blessing for everyone. As many renowned financial firms were grounded because of the high and that’s the excessive leverage meaning in forex. Brokers like Long Term Capital Management and Lehman Brothers were the scapegoats of high leverage. But if you know the right way, then you can use it to make huge profits with just a little capital.
Leverage can go high up to 500:1 in forex trading. Leverage has some advantages also which makes it superior to stocks.
Regulated Brokers with High Leverage
Leverage deals in currencies and currencies usually move incrementally That's call leverage meaning in forex. Therefore, leverage doesn’t have the risk that most stocks carry.
Though, when trades in forex market are determined in fractions of money, then 500:1 leverage doesn’t look excessive to the traders. To determine the number or amount of leverage used by the traders per trade, forex brokers mostly use margin system. For example, a USD/EUR trade will require 2% margin.
Forex Leverage Regulation
Leverage in forex trading is bound to certain strict regulations. Traders are subject to follow forex leverage regulation in the US than other countries in the world quotes by Paul Tudor Jones @ ptj_official. There is no limitation of excessive leverage in Europe and Australia. You can go leverage meaning in forex high up to 500:1. But there is restrictions imposed by the US law. They set a limit of 50:1 leverage in the US for the forex traders.
Many forex brokers offer CFDs (contract for difference) on commodities, bonds, crypto currencies, and indices. These are no ordinary product in forex trading. Because of their speculations, these products are banned in the US entirely. Therefore, MetaTrader 5 a renowned forex platform doesn’t have any uptake there.
What are the essentials of a high leverage forex broker?
Finding the right forex broker isn’t an easy task at all. It takes several days of research, comparisons, and awareness of market to choose the right one for yourself. Yet, it doesn’t just depend on your trading preferences only. Rather, it depends on where you live and you want a local or offshore forex broker. But still there are some more things you need to pay attention to before choosing a forex broker. To get an idea of how leverage works you need to know certain things as well. Here they are as follows:
- Margin Requirements: Apart from the US, all the other countries allow to take the leverage up to 500:1 even on the major currencies. But the United States law set the limits for their brokers. For this reason, they are bound to 2% margin requirements which is 50:1 in leverage. Without know forex leverage regulation you won’t need to use us forex broker with highest leverage on each and every trade of yours. But you must assure to have a broker whose limits will work for you.
- Commission System: There are only two ways of making money for the forex brokers. One is from the commissions and the other is from the spread. Many forex broker have commission and spread-only accounts available where commission accounts will help you to get reduced spreads in the forex market. Every broker has a fee chart on its website and you must need to check the fees and rate on the first place. You should also need to understand the charging system before opening an account there.
- Trading Software: Most of the forex brokers possess their own designed trading software but yet they offer popular trading platform like MetaTrader 4 and cTrader to their clients. If you also like to trade in these software, then make sure that your broker support your chosen trading software. Because only then you will be able to understand the meaning of what is leverage meaning in forex.
- Minimum Amounts: A certain amount of capital is must to open a trading account in the forex market. This amount varies broker to broker. The amount of completing a trade vary broker to broker as well. You will find a few brokers who will offer no account minimum to open an account. But all the brokers will ask for trade minimums.
US Forex Broker with Highest Leverage
US forex traders aren’t able to use the highest available leverage because of their law and forex leverage regulation. Whereas all the countries in Europe and Australia are allowed to do that. US forex brokers aren’t even allowed to use the popular trading platforms like MT4, MT5, etc. Brokers outside of the US are allowed to use these trading platforms. High leverage forex brokers US clients get a lower amount of leverage than the other ones.
High Leverage Forex Brokers US Clients
US forex broker with highest leverage gets a leverage of 50:1 and the margin requirements are 2%. The US law sets these number. So, there is no chance to avoid that. But outside of the US, forex brokers get the highest leverage of 500:1 which is comparatively a better number than theirs. This is why people want to trade with offshore forex brokers rather than the US forex broker because the highest leverage difference. High leverage forex brokers US clients are pretty rare in the current forex market.
Top Forex Brokers with High Leverage
After considering all the criteria mentioned above, we made this list consisting the top forex brokers with high leverage in the forex market these days. Though the us forex broker with highest leverage in the US is 50:1, but for all the other international brokers the number goes up to 500:1 leverage for some major pairs at least. Here this list will acknowledge you with the knowledge of which broker gives maximum leverage as follows:
1. FP Markets
When the discussion of top regulated brokers with high leverage comes on the table, FP Markets is the first name that any experience trader will suggest. They take zero commission from their clients and still they are one of the most trustable brokers of the current forex market. Their client support system is very friendly and handle each client account with utmost professionally. Their minimum deposit for forex account to open an is only $100. Still they have a high leverage to offer their clients. The maximum leverage they offer is 500:1.
2. IC Markets
IC Markets is one of the major forex brokers with high leverage in the current forex market. They are one of the few places that can offer great service and commitments simultaneously with high leverage. This is why people are having interest in trading with IC Markets these days. They value all their traders regardless of their types. Their commission per lot is $0. Even their minimum deposit amount is comparatively lower than other brokers. They only take $200 deposit to open an account. Highest leverage of IC Markets is 500:1.
FxPro is one of the most trustable high leverage brokers in the current market. They are also the most experienced one also possessing an experience of more than 15 years. They are the first name when it comes to safeguard the client money. They take great care of their traders as well. You won’t even have to spend a single penny on funding for commission. Their initial deposit amount is $500 and their highest leverage is 500:1. They always make sure of their client money protected and save them from all sorts of potential risks.
XM is one of the top forex brokers with high leverage who is currently ruling the forex trading market. They are popular for their friendly services and trustworthy images in the current market apart from the high leverage facility. They offer their clients up to 888:1 leverage. Though this leverage doesn’t apply for all account entities of XM Group, but you will get the opportunity to set your leverage 1:1 to 888:1 for the trading account. But these numbers are depended on two separate things. One is your country of residence and the other is your leverage trading platform.
HotForex is considered as one of the top 100 regulated brokers with high leverage in the forex market these days. Their service and customer support for forex leverage regulation are extraordinary. Even their commission and other fees are inspiring for the traders to a trading account. Their leverage goes up to 1000:1 for the micro accounts. The number is 400:1 leverage when it comes to currenex, premium, fixed spread, and auto accounts. But leverage for the VIP and PAMM accounts are up to 300:1. Their highest leverage numbers are appealing and excellent for any type of forex traders.
Axi is an experienced name in the forex market and they offer their clients high leverage as well. It’s been over 13 years since they started their forex market journey. They rise up to today’s place by providing excellent and satisfactory services to their clients.
They trade with thousands of traders over hundreds of countries all around the world on a daily basis. Minimum deposit to open forex trading account is only $10. The maximum leverage of Axi is 500:1. They deal with 54 currency pairs in the trading market. All sorts of trading platforms are supported by them as well.
Exness is one of the top 100 regulated forex brokers with high leverage in forex trading. They take care of their client’s money quite nicely. And for this reason they have already become one of the most trustable forex broker in the world. Even their customer support system for both the new and veteran traders are incredible for which traders are willingly open new accounts with them on a regular basis.
You can learn leverage meaning in forex from forex education. then you can choose your leverage from a range of 2:1 to unlimited for mini and classic accounts. Their maximum leverage sometimes get reduced to 200:1 when the market closes. To become eligible for unlimited leverage, the traders need to possess an account equity of less than $1000 and they should have already made minimum 10 trades of 5 or more lots. When it comes to ECN accounts, the highest leverage is up to 200:1.
8. Admiral Markets
Admiral Markets is one of the best forex brokers with high leverage nowadays in the forex market. They have earned themselves a great reputation as the top forex brokers with high leverage through their service and customer satisfaction. They protect the client money like their own and their risk management system is worth-praising. Retail account holders get leverage up to 20:1 to 30:1. But the professional account holders get up to 500:1 leverage in the forex market. Their minimum spread is 0.5 pips.
XTB is one of the finest names in the forex market who can provide you high leverage as well. They are one of the popular in this business because of their risk-free trading system, organized customer support, and regulated brokers with high leverage. Their commission rate is also inspiring for the new traders to open an account.
They offer trade in more than 50 major currencies all over the world. Even you can trade with other financial platforms as well. Their minimum deposit to open an account is $1. They can offer their clients a leverage up to 500:1. This number is pretty high enough to attract a lot of traders to XTB.
10. FBS Markets
FBS Markets is known as one of the best forex brokers by forex broker reviews with high leverage. They are serving their clients all over the world for many years. FBS Markets provides their trading services and conditions to all sorts of traders. But when it comes to give high leverage to the traders, they are still one of the top 10 forex brokers in the market.
If you are regulated brokers with high leverage under IFSC regulations as a trader, then you can get 3000:1 leverage. With minimum requirement deposit is $1 only. Therefore, opening an account with FBS Markets is easier than any other forex broker. If you are regulated brokers with high leverage under CySEC as a trader, then you will get 30:1 leverage from FBS Markets.
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11. Blackwell Global
Blackwell Global has been providing financial services since 2010 in 90 countries across the world. However, the company mainly offers services in UK, Europe, Asian and Middle East countries. Blackwell Global instruments include forex, indices, 16 cryptos, and commodities. In the last 10 years, the company won 12 international awards for their outstanding service in forex and other sectors.
Blackwell becomes popular due to its low fees and high leverage. With a minimum $500 deposit, it can get you 1:400 maximum leverage. However, the UK and Cyprus citizens can use a maximum of 1:300 leverage for forex instruments, 1:100 for the commodities, and 1:500 for the cryptocurrencies.
The Blackwell fees are distributed through variable tight spreads on different asset classes such as EUR/USD, Gold, Crude Oil WTI, BTC/USD, and more. You may initiate the trading by depositing through many methods, including bank payment, Skrill, Neteller, Bitcoin, Credit Cards, etc.
Overall, Blackwell delivers convenient and reliable trading options for traders worldwide. Besides, the regulations from FSP, CySEC, and UK FCA license make the Blackwell more reliable among the competitors.
Leverage Meaning in Forex
High leverage forex brokers are a great choice for your trading journey in the forex market. Many traders will recommend you to take the high leverage and minimum deposit combination from the forex brokers. Because it is what most of them prefers to take while starting their journey in forex trading. They prefer it because it can show you the broker house's live trading conditions and indicate if they are capable for the long run.
Moreover, high leverage forex brokers offer and provide suitable conditions for all sorts of traders. But the traders need to be careful and choose the right trading account for us forex broker with highest leverage. After that, they need to adjust the money management and trade according to that in the market. Only then, a trader will be able to escape from any downside of high leverage trading. So, to get the most of one’s capital, there is no alternative of a high leverage forex trading.