Over the years, as the online forex trading industry evolved, several features were introduced which help to boost profitability for investors. Leverage trading, or margin trading, is one of these features, where ‘leverage’” refers to the ratio between the position value and the investment capital required, while ‘margin’ refers to the percentage of the position needed. Leverage trading allows a trader to invest more in a trade than their available trading capital. This form of trading has many advantages as it requires less capital by the investor, however, while the trader stands to gain more profits, they also stand to experience a greater loss if the trade turns against them. With the benefits and risks in mind, let us take a look at some of the top high leverage forex brokers available in the industry.
Mason Ford is one of the leading high leverage forex brokers in the industry. It is one of the few brokers that offer a leverage of up to 1:1000, allowing people to earn hundreds of thousands of dollars with just a fraction of the investment amount. As one of the top British forex brokers, Mason Ford offers traders an all-inclusive trading environment that provides all the tools and features needed to trade effectively and successfully. Users can choose to remain anonymous while trading forex and other financial assets on Mason Ford. They also support the trading of other assets, including shares, cryptocurrencies, indices, commodities, and more. The broker also offers access to a demo account as well as a comprehensive education center. To cater to different types of traders, Mason Ford offers different account types each tailored with unique features and services. You can also make deposits and withdrawals with ease with Mason Ford as they offer a choice of secure banking options. The customer service is responsive and professional.
READ THE FULL MASON FORD REVIEW HERE
|Leverage as high as 1:1000||No MT4 or MT5 platforms|
|Supports FX and other assets||Not available to U.S traders|
|Intuitive trading platform|
Nasdaq 500 is also a high leverage forex broker, allowing traders to trade with leverage as high as 1:200. This leverage means that traders can earn as much as $200,000 with just a thousand-dollar investment on trades. In addition to the high leverage offered, Nasdaq 500 provides access to other assets like stocks, commodities, cryptocurrencies and indices. To ensure that traders are able to analyze the markets accurately and effectively, Nasdaq 500 provides them with a wide range of powerful trading tools and indicators, flexible trading platforms for both web and mobile users, free and direct access to a wide array of educational materials, and social copy trading services. Although Nasdaq 500 is relatively new to the space, it has gained the trust of thousands of traders globally. The broker also offers professional customer service and support, assisting their clients quickly and efficiently.
READ THE FULL NASDAQ 500 REVIEW HERE
|Social copy trading available||No e-wallet payment option|
|Leverage as high as 1:200|
|FX, equities, cryptos, commodities, and indices available|
|Wide range of trading tools and resources|
AvaTrade is well-known in the industry as one of the leading high leverage forex brokers that offers attractive leverage on multiple assets. For forex assets, AvaTrade allows users to trade with leverage as high as 1:400. For stocks, the leverage is 1:20, and the same level applies to bonds and treasuries. Furthermore, traders can use leverage of up to 1:200 when trading commodities. AvaTrade offers a wide range of assets to trade including stocks, cryptocurrencies, bonds, indices, commodities and ETFs. It has gained popularity because it is available in several countries around the world. In each location, AvaTrade personalizes the platform to make it localized for traders. As a multi-regulated broker, AvaTrade provides secure banking options, access to MT4 and MT5 platforms, a comprehensive education center, powerful trading tools, and more. The broker also offers top customer service and support.
READ THE FULL AVATRADE REVIEW HERE
|Offers leverage on all assets||High trading fees|
|Supports FX, crypto, shares, ETF, bonds, indices, commodities, and treasuries|
|Expansive trading resources|
|It is a regulated broker|
|24/7 customer service|
The reason Mentor FX is considered one of the best high leverage forex brokers is that it offers leverage as high as 1:400 for FX assets. This means that users can earn massive amounts of money with just a fraction of their investment amount. The minimum deposit on Mentor FX is 250 EUR, while the higher account types require a minimum deposit of 5,000 EUR and 10,000 EUR respectively. The leverage amount varies according to the account type the trader has opened. The standard account type offers leverage of 1:100, the next tier account type offers leverage of 1:200 while the highest account type offers leverage of 1:400. Mentor FX provides the necessary tools to ensure the success of its traders including a trading dictionary. Each user also has access to a personal account manager and a trading coach, and the broker offers fast and reliable order execution, advanced tools, intuitive trading platforms and more. On Mentor FX, users have access to various assets under the crypto, FX, stocks, and commodities asset classes.
READ THE FULL MENTOR FX REVIEW HERE
|Leverage as high as 1:400||Limited educational resources|
|Low deposit requirement|
|Supports crypto, FX, stocks, and commodities|
|Various account types|
eToro is a global leading social trading platform that is recognized as one of the high leverage forex brokers. Similar to the other top brokers, eToro offers excellent leverage levels for various financial assets. Forex traders get to enjoy leverage as high as 1:400. For traders that fall under the CySEC regulation, the leverage levels are 1:30 for major currency pairs, 1:20 for non-major currency pairs and major indices, 1:10 for commodities asides gold and non-major indices, 1:5 for CFD stocks and ETFs, and 1:2 for cryptocurrency pairs. According to ASIC guidelines, traders can access leverage of 1:400 for FX pairs, 1:100 for commodities and indices, 1:20 for CFD stocks, and 1:2 for cryptocurrencies. To help new traders gain market advantage, eToro supports social trading, allowing newbies to copy the trading of established experts. eToro also provides traders with excellent trading tools and resources, enabling them to take advantage of the lucrative trading opportunities in the market.
READ THE FULL ETORO REVIEW HERE
|Leverage as high as 1:400 for forex||High FX trading fees|
|Social trading||Single account base currency|
|Powerful trading platforms||Slow withdrawals|
|Easy account opening|
|Supports various asset classes|
Plus500 is one of the largest brokers in the world, winning several awards for the excellent services they offer to traders globally. On Plus500, traders can trade a wide array of assets, including forex, stocks, commodities, crypto, ETFs, options, and indices. Plus500 offers various leverage levels for the over 2000 financial instruments on its platform. As one of the high leverage forex brokers, traders can trade forex with up to 1:100 leverage. This means that with just $100, traders can invest $30,000. Plus500 also offers other leverage levels such as 1:2 for cryptocurrency assets, 1:40 for indices, and more. As a registered and regulated broker, Plus500 provides its traders with various trading tools and resources including access to an Economic Calendar, a trader’s guide, risk management tools and more. You can also access a free demo account enabling you to try the platform before you invest your hard-earned cash.
READ THE FULL PLUS500 REVIEW HERE
|Leverage as high as 1:100 for FX||No corporate accounts|
|Leverage available for other assets||24/5 customer service|
|Publicly listed company||Limited educational materials|
|Over 2000 assets|
|Swift order execution|
Arum Capital is one of the most prominent brokers in Europe. It is licensed by CySEC and provides one of the largest liquidities for traders operating within the EU region. To help traders get started, Arum Capital funds their demo accounts with over 10,000 EUR of virtual funds. Arum Capital is regarded as one of the high leverage forex brokers because it offers leverages as high as 1:30 for its FX pairs. The broker offers other assets aside FX pairs, such as cryptocurrencies. To make it easier to trade, Arum Capital deploys the MetaTrader 5 platform, which comes with a wide range of trading tools and resources. They have a dedicated news and market analysis section, which helps keep traders updated with the latest market events. Thanks to its swift order execution, secure banking options, and narrow spreads, Arum Capital is an excellent platform to partner with.
READ THE FULL ARUM CAPITAL REVIEW HERE
|Leverage as high as 1:30||No stocks available|
|Up to 100 pending orders||High bank deposit|
|Large liquidity||Limited educational center|
|Direct order execution|
|Hedging positions allowed|
|Robot trading is available|
KronosInvest offers leverage as high as 1:500, thus, it is not surprising that this top-notch broker makes the list as one of the high leverage forex brokers. For indices, traders get to enjoy 1:200 leverage, while it is 1:10 for stocks. KronosInvest has become a leading forex broker, thanks to its user-friendly interface, expert trading advice, tight spreads, and micro lot trading. It allows traders all over the world to access the more than 200 tradable instruments on its platform. At the moment, users can trade forex, indices, shares, and commodities on KronosInvest. The expert analysis available on the site is conducted by analysts with over decades of experience in the financial markets. KronosInvest provides effective trading tools and other features to help the traders enjoy their experience when trading FX and other assets.
READ THE FULL KRONOSINVEST REVIEW HERE
|Leverage for FX, stocks, and indices||24/5 customer support|
|Seven languages available||U.S traders not accepted|
|Instant order execution|
|MT4 and WebTrader|
|Auto and copy trading available|
|Free demo account|
Profit Trade offers leverages based on the account types that are opened. For educational, premium, and standard accounts, the leverage is 1:200. Those using the robot account get to enjoy 1:100 trading leverage, while those using the VIP account, enjoy leverage as high as 1:400. This is why Profit Trade is regarded as one of the leading high leverage forex brokers. Profit Trade has gained widespread acceptance as a CFD trading expert because it offers several other asset classes like stocks, cryptocurrencies, commodities, and indices. The trading tools and features make it easy for both new and advanced traders to trade effectively, ensuring that they can take advantage of the high margin trading offered to them. In terms of educational materials, Profit Trade probably stands above the other brokers in the industry, making it an all-inclusive platform for those that wish to learn about forex and CFD trading.
READ THE FULL PROFIT TRADE REVIEW HERE
|Supports multiple trading accounts||Customer service is 24/5|
|Leverage as high as 1:400||Limited cryptos|
|Forex, crypto, commodities, stocks, and indices|
|Advanced charting tools|
|Desktop and mobile trading|
At a leverage level of 1:500, IC Markets is one of the quality high leverage forex brokers currently offering its services to thousands of traders around the world. This high leverage, in addition to narrow spreads, and micro lot trading, makes IC Markets a hot spot for scalpers and day traders. IC Markets has one of the fastest order execution speeds, with its New York Equinix NY4 data center processing more than 500,000 transactions per day. One of its best features is the numerous trading platforms available. On IC Markets, traders can use any of the MT4, MT5, and cTrader platforms available on both computers and mobile devices. IC Markets also supports the trading of other assets asides forex, including stocks, cryptocurrencies, bonds, commodities, futures, and indices. By offering an Islamic account, IC Markets opened the door to a new market that potentially attracts thousands of Muslim traders globally.
READ THE FULL IC MARKETS REVIEW HERE
|Leverage as high as 1:500||24/5 customer support|
|Islamic account available|
|Supports multiple platforms|
|FX, crypto, stocks, indices, bonds, commodities, and futures|
|Fast order processing|
|Advanced charting tools|
|Free demo account|
How Does High Leverage Work?
Leverage involves the borrowing of money so as to invest in something. In forex trading, the money is borrowed from the broker, enabling traders to stake higher amounts on their trades. Different broker offers traders different levels of leverage. The broker states a certain initial requirement for the trader to meet, after which they will be allowed to build up and control a larger amount of money for trading purposes. For instance, if the broker requires you to deposit 1% of the total trading value as margin for trading the EUR/USD pair, which is around $100,000, the required margin would be $1,000. This means that the leverage for the trade is 100:1. If the margin requirement is 0.5%, the leverage for the trade would be 200:1. In the case of 1:100 leverage, this means that with $1,000, you can trade up to $100,000 and you will then lose or earn profits, depending on the outcome of the trade.
Pros and Cons of High Leverage
- It gives traders an opportunity to trade with a small capital amount: Leverage enables traders to earn massive profits using their limited trading capital. Without leverage, only the rich can stake huge amounts on trades, monopolizing the market in the process. Thanks to leverage, the forex market is open to all traders.
- Zero-interest: Even though you are borrowing money from a broker, leverage is a loan that does not incur any interest. The traders can start trading with the leverage amount received without the fear of paying extra interest on the amount they borrowed.
- Higher profit margins: By using leverage, traders increase their chances of earning more profits. A trader with $1,000 can invest up to $100,000 when he utilizes a 100:1 leverage to trade assets. Trading with higher amounts increases your chances of making more money and profits as a trader.
- Competitiveness: Since virtually all brokers now offer leverage, the competition is high to attract more customers. As a result, many brokers roll out even more attractive leverage trading conditions for their traders. This is a good advantage for traders as this enables them to choose the broker that best suits their leverage trading needs.
- Heavier losses: While trading with leverage, you can boost your chances of making higher profits. It also paves the way, however, to incur heavier losses. The big profits can become smaller while using leverage, while the small losses can turn to be bigger and more costly. Trading with higher leverage demands that you should be careful and pay attention to know when it is time to stop the trade to limit the losses.
- Liability: Trading with leverage leads to instant liability that needs to be finalized before the end of the day. The real amount of leverage must be completed regardless of the additional cost you need to pay or whether the transaction goes up or down. The trader has to pay the leverage before they can continue trading.
- Margin Call Risk: The margin call risk is a constant risk to the trader as it is the transaction size that needs to be fulfilled, depending on the trader’s capital. If at a particular point, the trader falls below that threshold, the broker will initiate a margin call, which will liquidate the trader’s entire portfolio if not corrected. This means that positions will be closed that might have delivered good profits.