3 Best High Leverage Forex Brokers

by Mar 24, 2021Forex Trading Broker

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High leverage Forex brokers allows you leverage high as 1:2000 or more.

Below you can find a list of high leverage Forex brokers which you can use to open a trading account and trade. In the Forex market you can find different sizes of leverage which allows traders to open larger lot size.

Higher leverage and higher lot size allows you to make more money per each pip.

If you do not know what is the connection between high leverage and lot size check the article I have written where I explain what is lot size and how to calculate pip value.

There are different leverage ratios which can be considered as high leverage, but the leverage ratio starts from 1:2 up to 1:2000. Maybe you will find high leverage in Forex like 1:5000, but ratio 1:2000 is mostly available as a highest leverage.

High Leverage Meaning

Let me give you a sentence about leverage to get an idea why leverage is used.

Higher leverage means you can open higher lot size and margin level is decreased. If you want to know more you can read the article about connection margin level.

With less margin required you can have more available funds for trading. That is why high leverage in Forex is good.

You as a trader should use brokers with high leverage, but do not use the total maximum lot size. You need to be careful when using high leverage because you can end up without money very fast when using large lot size.

High leverage meaning defines how large lot size you can open. High leverage Forex brokers gives you the maximum available leverage which means you do not need to use all what is offered. You can use lower leverage in your trading.

High Leverage Example

For example, here is an explanation of what high leverage means in trading.

If you have high leverage like 1:1000 and you invest $1000, you can open a position as large as $1 000 000. That is roughly equal to 10.00 standard lots which you can open on the trading platform.

But, your goal is not to use the highest leverage that brokers offers you. 1:1000 is maximum available, but you should use smaller leverage that is inline with your risk management.

If you want to open one lot, 1.00, then you have left 9.00 lots of your maximum available leverage.

When you have room for more trades to open that gives you more opportunities. If you have seen scalpers then you know they need to have available margin to open several trades at the same time.

Having high leverage in Forex trading it allows you to have more room for several trades to be open at the same time.

High leverage means you need to invest a small amount of money to open a position. And the reason is that you need less margin to put aside for each trade.

Some Forex brokers have limits offering high leverage because of regulations. Regulatory bodies have set restrictions on maximum allowed leverage because of protection of traders. They want to limit traders from opening large positions and losing lots of money.

Brokers to avoid such regulation have subsidiaries across the globe where regulations are less strict.

When looking for a high leverage broker in Forex you need to pay attention to this because you will not be protected from scammers while there is no regulator body that prevents such actions.

High leverage offers you:

  1. A chance to open large position or large lot size
  2. You can open more trades at the same time because required margin is lower
  3. If you are following some trader that use high leverage in trading you can copy his trading signals which you would be limited if using low leverage broker
  4. Enter into trade with lower capital

Pay Attention When Using High Leverage Forex Brokers

Using a high leverage Forex brokers means you will have less margin requirement. With less margin you can end up in negative balance when a quick market move happens.

That means you can end up losing all your money and even exceeding your balance. That means you need to return money back to the broker.

To prevent needing to return money to the broker after you lose all what you have invested is good to select a broker that has negative balance protection. Brokers will use a stop-out policy which is automated so trading platforms prevent your trades from getting closed when you lose all your trading balance.

High Leverage Forex Brokers for Professional and Retail Traders

When you select a trading broker you will be asked are you a professional trader or a retail trader.

Professional trader will be a trader that trades for years and has trading history. Mostly brokers ask to see your trading history to be verified as a professional trader.

As a retail trader you do not have trading history or you have traded for a few months. You can send trading history, but it is not sure you will be verified as a professional.

Now, what is the difference between a professional and retail trader in case of high leverage?

A Retail trader does not get high leverage, but he gets smaller leverage like 1:10 up to 1:30.

Professional traders can get high leverage as 1:500 because of his trading history.

Trading history tells a broker do you know or you do not know how to trade. They are trying to protect you from higher leverage so you do not end up losing your money very fast.

List of Broker With High Leverage

“Disclosure: Some of the links in this post are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. This does not cost you anything extra on the usual cost of the product, and may sometimes cost less as I have some affiliate discounts in place I can offer you”

Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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