High Leverage Forex Brokers

Understanding Forex Broker Leverage

Many traders are attracted to Forex due to the potential for leveraged trading. This is when borrowed capital or leverage is used as a source of funding. Traders are able to use a small account balance to place currency pair trades with a larger volume.

Although the potential returns are substantially higher, the risks increase as well. Leverage is generally shown as a ratio. The trader must have a specific percentage of the total volume available to trade.

Forex is a global centralized OTC market to trade currencies. Each currency offers a different rate established by the market for exchanging, purchasing and selling currencies. In regards to trading volume, this is the largest market worldwide.

The key reason for the popularity of Forex is higher leverage than available with stocks. Leverage has a direct impact on both profits and losses.

Importance of Margin and Leverage in Forex Trading

Traditional United States stockbrokers usually offer margin trading. Clients borrow funds from the broker to make additional purchases, then pay interest on the loan. The margin rate for the majority of online brokers is five to nine percent.

The purpose of borrowing money is to leverage trades. Most stockbrokers offer 2:1 leverage with a $50 account balance qualifying for $100 in trading capital. If the trade is unsuccessful, the broker must be paid despite the capital being lost.

Many well-known firms have gone under due to excessive leverage. If used correctly, exceptional profits can result with little capital required upfront. The maximum leverage for Forex trading is usually 500:1.

Leverage does not have the same risk with Forex because currencies move at a much slower pace. Margin requirements are set by Forex brokers for currency trader leverage for each trade. This is shown as a percentage.

How to Find High Leverage Brokers

Selecting the best Forex broker is dependent on both country and trading preferences. The highest leverage available is not accessible for Forex traders in the United States. The following should be considered when choosing a broker.

1) Fees and Commissions:

There are two ways for a Forex broker to make money, the spread and commissions. Some brokers only offer commission and spread accounts. A reduced spread is available on the commission accounts. Understanding the broker website fee charts is imperative.

2) Margin Requirements:

There is a 50:1 or two percent limit for United States margin requirements. Maximum international trade leverage for the majority of major currencies is 500:1. Broker leverage limits must be appropriate for trader preferences.

3) Trade and Account Minimums:

Each broker has a different minimum capital requirement to open a new account in addition to the amount necessary for completing trades. Although every broker sets a trade minimum, some do not have an account minimum.

4) Trading Software Support:

Certain Forex brokers offer proprietary trading software. Others offer additional platforms including cTrader and MetaTrader. Make certain the broker selected offers the preferred trading platform.

The five top high leverage Forex Brokers for 2021 are:

• Forex.com
• IG Markets
• TD Ameritrade
• Interactive Brokers
• OANDA

1) Forex.com

This is the top Forex broker in the United States due to the fairly low spread. Unnecessary commission expenses are not required to trade. Forex.com accepts payment cards and bank transfers for both withdrawals and payments.

This ensures all transactions are safe and reliable. Traders can employ a variety of trading strategies through algorithmic trading advisors. The affiliate program offers novice traders a portion of the transaction spread.

Forex.com is considered the best United States Forex broker for 2021 due to a steady client base growth during 2020.

2) IG Markets

IG Markets is the most trusted Forex broker due to the large number of trading tools available and client friendliness. Novice traders can access training information and a free demo account through IG markets.

The affiliate program is called Invite a Friend and offers participating traders $100 per referral provides five transactions are completed within a period of six months. The broker is regulated by reputable regulators and all financials shown on the stock market are disclosed.

IG Markets is considered one of the most trusted and best Forex brokers in the United States for 2021.

3) TD Ameritrade

The TD Ameritrade desktop application is called Thinkorswim. Traders receive an ideal combination of design and functionality. The broker is reliable and has been established worldwide for more than 40 years.

The popularity of TD American is due to high-quality services. Traders can take advantage of investments in a wide range of stocks and top financial instruments. The Forex broker also offers commission-free trading.

All of the products and platforms are available to traders with no hidden fees, trading minimums or deposit minimums.

4) Interactive Brokers

Interactive Brokers has been ranked as the best Forex broker for professionals. The company is reliable and offers a good variety of features and tools to help ensure the best possible trading experience.

Interactive Brokers is overseen by numerous regulatory authorities including CFTC, SEC and FCA. Last year, the firm received several awards including NerdWallet’s Best Broker for Economical Investments and Barron’s Best Online Broker.

The Canstar online stock trading category awarded the broker five stars. Traders should be aware the minimum United States deposit is $100. The available tools and advanced features provide traders with a seamless trading experience suitable for professionals.

5) OANDA

OANDA is considered the best Forex broker for novices. The broker was established in the Forex market in 1996. During the time the company has been operating, the broker has received a reputation for reliability and an attractive client environment.

The broker offers traders powerful TradingView platform tools, good market execution and a low spread. The most popular aspects of the broker are powerful research tools and a platform designed to be user-friendly.

OANDA provides traders with a fairly large range of technical indicators ideal for novice investors. Beginners are able to open fully digital accounts quickly and easily.