Many people not involved with forex trading get surprised at the fact that it does not require a large initial investment to profit big. All of this is possible because of leveraged trading as it lets traders open positions worth ten and thousands of dollars while investing a mere $500. However, the potential for profit from such high amounts of leverage is accompanied by the very high risk of losing everything if one is not careful.
Before we mention the exchanges with the highest leverage rates, we should first glance over what leverage means in the context of FX trading. It refers to the mechanism by which a trader takes a position much larger than his/her initial investment. Few traders realize the potential for profit if they use leverage correctly. High leverage allows a trader with a small investment to trade higher volumes of foreign exchange. They thus have more opportunities to make large profits from small market movements.
It can also work the opposite way if one is not careful. There have been instances where traders have been lured in by the prospect of trading with high leverage, only to end up using up all of their funds. Thus, leverage should never be the sole determinant of selecting a particular fx broker, ignoring other aspects such as money and risk management.
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Brokers with the highest leverage(forex)
The following are some of the best forex brokers who are known for offering some of the leverage percentages that seem excessive compared to the rest of the market.
FXTM
FXTM, a leading foreign exchange, and CFD broker has won the best ECN Broker for 2020 from various organizations. Apart from the myriad of trading platforms it offers, FXTM has rolled out 11 new dynamic currency and stock basket indices. It also offers one of the highest leverage rates at 2000:1 applicable to certain users. It offers a total of 6 account types including Standard account, Cent account, Stock CFDs Account, ECN Acc MT4, ECN Zero MT4, and FXTM Pro MT4. As it caters to a variety of different users it has integrated various deposit methods including Webmoney, Yandex Money, Credit Cards, Neteller, and even Bitcoin.
AXI
AXI is a popular FX broker that has amassed more than tens of thousands of accounts in the last decade or so. Operating in over 100 nations, it offers a proprietary platform called AxiOne, which provides multi-asset trading including forex, CFDs, spread betting, NDFs, access to seven exchanges, and direct liquidity. It also allows social trading via myfxbook. Users have the option to choose from either a Standard account or a Pro account. Leverage at AXI can reach as high as up to 500:1 on certain instruments.
Pepperstone
Transparency, well-regulated and honest is 3 words that can describe Pepperstone as an FX broker. It comes with its own educational resources aimed at educating its user base. It supports a multifaceted deposit and withdrawal method which works with credit and debit cards, bank wire transfer and a number of payment processors. It offers an extended catalog of over 150 instruments across several asset classes like forex, equities, index CFDs, cryptos, and commodities. The platform’s main focus remains on the 61 currency pairs it offers. This platform also has one of the highest leverage rates at 500:1.
Forex.com
Owned by GAIN Capital Group LLC, Forex.com has been in the business since 2010 with a competitive, commission-based cost-structure. Compared to some of the other options on the list, Forex.com offers less tradable instruments(less than 100). It is primarily an FX broker which offers trading in 82 currency pairs, along with unleveraged gold and silver trading and five future products. It offers maximum leverage of 1:50 for major currency pairs and 1:20 for minors. Account variants include Standard account, STP Pro account, and Commission Account.
Leverage can seem exciting at first but one has to be careful. Simply considering high leverage on certain products cannot be the sole reason for choosing a broker. Because of the fact that leverage can work both ways, traders have to consider a platform’s risk management tools, security, and related expenses before they make their final choice.
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