Brokers with High Leverage. Our Top 5 Picks

Is Trading with High Leverage still an option for European Traders?

Recent ESMA Regulations have forced Investors that have been trading Forex, Stocks & CFDs with EU Regulated Brokers, to move to Brokers regulated in other jurisdictions.

Australia, Belize and Seychelles are some of the most popular jurisdictions that Clients open Trading Accounts with to continue trading with high leverage. Currently, the highest leverage offered in the EU due to ESMA is 1:30. ESMA has proposed this harsh decrease in leverage, due to the risks associated with high leverage. Some FX Brokers in the past took advantage of the uncapped leverage, offering max leverage of up to 1:1000 and higher, leading to swift margin calls and even negative balances.

Luckily, there are a lot of Forex Brokers and CFD Brokers, that are regulated outside the EU in reputable jurisdictions such as ASIC (Australia). This allows retail traders to open accounts and trade as they did prior to ESMA Regulations with a higher leverage.

Apart from ASIC, there are a lot of Brokers that are regulated in offshore jurisdictions such as Belize and Seychelles, also offering favourable Trading Conditions. As Investors perception of these offshore High Leveraged Brokers is somewhat negative, we have also included certain Brokers that have a high trust score. This is due to being part of a bigger Multi-regulated Group, or simply having a solid reputation and track record.

If you are thinking about how to maintain your current trading portfolio and staying unaffected by the rules imposed by ESMA, you should definitely consider moving your trades to a Non-EU Broker.

High Leverage Forex Brokers – Our Top 5 Picks:

The forex brokers listed below are regulated forex brokers with high leverage. Some are regulated by Australia in ASIC, whilst others are regulated by other offshore jurisdictions such as Belize, Mauritius and so on.

In our opinion they are the best forex brokers for traders who want to trade with a high leverage. If you know of other honest forex brokers that offer leveraged trading with optimum trading conditions and also happens to be regulated, please let us know so we can evaluate them and add them to our list!

• XM Australia
• FXTM Belize
• RoboForex
• HotForex
• IC Markets

Why move to a Non-EU Regulated Broker?

With the introduction of the latest ESMA rules, moving to a Non-EU Regulated Broker may be a traders only way to continue trading with the same strategy they were, whilst benefiting from best trading conditions.

• High Leverage: Trade with maximum leverage, as ESMA Regulations do not affect Non-EU Brokers.
• Trading Conditions: Various Trading Bonuses and Loyalty Schemes are still available with Non-EU Brokers.
• Language: Regardless to what language you speak, most brokers offer their website in various languages.
• Safety & Protection: Australia is considered to be one of the safest Financial Hubs for Investors.
• Customer Service: Receive unparalleled Customer Support from highly skilled labour.

What is Leverage in Trading and how is Leverage used in Forex Trading?

One of the most asked questions when traders begin to trade forex is what is leverage in trading and how can I use it to my benefit?

Simply put, price movements in Forex can be minimal. This decreases the possibility of earning a decent profit. This is why leverage is so important in Forex Trading as Brokers borrow money to clients in their margin accounts.

If a client has $100 in their account, they can only trade with that $100. However, if a client uses a High Leverage of 1:1000, this means the client can trade with $100,000, which would make profits much larger.

The problem with leveraged trading, is that apart from raising the potential gains an investor can make whilst trading, it has the same effect on losses. Although after the Swiss Franc debacle most Forex Brokers have introduced negative balance protection, there are still a few Brokers that still do not have this in place, and therefore trading with high leverage can be very risky as traders can end up losing more than their initial investment.

Before trading forex with a high leveraged account, make sure that you try trading with a leverage that isn’t as high, such as 1:10, 1:25, or even 1:50! This will allow you to get a good understanding on how leverage can ‘speed up’ things, and whilst it can be desirable, it can also be detrimental.

Benefits of High Leverage Forex Trading

Trading with a high leverage forex broker can bring a lot of advantages as first it means more freedom when it comes to trading conditions. However, as mentioned above, while there is no right formula to calculate what leverage to use for Forex Trading, make sure that you first start trading with lower leverage, anywhere from 1:1 to 1:50, until you know what you’re doing. Most importantly, make sure you go through our Beginners Course!

• High leverage trading allows traders to follow or copy other investors when it comes to Copy trading and Social trading, without needing to invest a large sum.
• Freedom to try different trading strategies and Expert Advisors, which require a substantially higher leverage than that offered by ESMA.
• If a Broker offers high leverage, usually means they do not operate under ESMA. Non-ESMA brokers usually offer better Trading Conditions on the whole, such as deposit bonuses, loyalty schemes, and others.
• High Leverage allows traders with minimal startup capital to start trading with as little as $5. Overall, leverage increases a traders ability to buy and sell.