Compare The Best High Leverage Brokers in 2023
Looking for a high leverage broker? You’ve come to the right place.
Rates of leverage will always vary by broker and with so many brokers out there, it can be hard to compare each side-by-side. Throw into the mix the recent leverage restrictions made by ASIC and things become even more confusing. But do not worry, that’s where we can help!
Most high leverage brokers will offer leverage of at least 200:1 depending on the jurisdiction and regulator. Let’s review some high leverage brokers below.
Recommended Brokers With High Leverage:
broker, tight spreads
Our Top Picks:
TD365 Best Low-Cost Broker
Do All Traders Have Access To High Leverage?
No, not all brokers can offer high leverage.
It used to be the case that all brokers offered high leverage, however that all changed when ESMA and the FCA introduced leverage restrictions in 2018. Since then, leverage in the UK & Europe has been capped at a maximum 30:1 (unless you’re a professional trader). These changes have resulted in British and European traders looking to new jurisdictions for higher leverage.
Since then, other jurisdictions have followed suit and also reduced leverage; the most recent case being ASIC in Australia. Australian-based residents have been asking the question, ‘we want high leverage – where to next?’…
What is Leverage?
As most will know, leverage is one of the main benefits of CFD trading.
By using a broker with high leverage, a trader can gain access to the world’s financial markets by depositing a relatively small amount of cash onto their trading account. This then enables them to open significantly larger trade sizes in proportion to their initial deposit. More on leverage here.
What Are The Benefits of Using a High Leverage Broker?
There are many advantages of trading with high leverage, some of these are listed below.
- Less Capital Required – Put simply, the higher the leverage, the less money you need on your trading account in order to trade. The lower the rate of leverage, the more funds you’ll need on account to place trades.
- Magnified Profits – Trading using leverage means if you speculate correctly, your profits will be greater than if the rates of leverage were lower. Of course, if you speculate incorrectly, then your losses will be magnified too..
Is Trading With a Broker With High Leverage Dangerous?
Yes, it can be.
However, if you thoroughly understand the risks, it’s not as dangerous as you may think. On the flipside, if do not understand the risks of leveraged trading, you could be lining yourself up for a disaster.
Always remember, high leverage allows traders to trade larger notional sizes. You will need to place less funds on your account to access larger trade sizes, however you face greater risk/s if the trade position goes against you.
What To Look For in a High Leverage Broker
Choosing a high leverage broker is a difficult and confusing process so here are a few things to pay attention to:
- Margin Requirements – If you are looking for high leverage, please ensure your broker of choice actually offers high leverage. You do not need to use high leverage on all your trades, but if leverage is important to you please pick a broker that works for you.
- Commissions and Spreads – Brokers make their money in two ways; from the spread and/ or from the commission. Some brokers offer a spread-only trading platform where you’ll pay a higher spread charge, and others will offer commission-only accounts, where you do not pay spread in your trades, just a commission fee. Most brokers will display their charges on their website so please investigate and compare before signing up. Please ensure that you understand all charges before you open an account.
- Customer Support – High leverage is only as good as a broker’s trading platform and customer support team. You will need quality, knowledgeable and friendly customer support at all times. Look for a broker that offers 24/5 support across phone, email and live chat. If they offer their support across differing languages, even better!
- Account Minimum – The capital required to open an account will vary by broker, as does the amount needed to open a trade. Please check how much money you need to open an account with a broker – some will have no account minimum, some have $3,000 account opening minimums.
What Leverage Is Best For a Beginner?
If you are new to online trading, then you should first learn as much as possible about how to trade safely and the potential risks involved. Absorb as much information as possible and gain the necessary understanding of this complex product before trading on a live account.
As for leverage, it is not recommended that a newbie trades with a broker that offers the highest amount of leverage. Ideally, you would wait until you have a greater understanding of the product before using a high leverage broker.