Can I lose more than my initial deposit in high-leverage trading?

Yes, a negative balance is always possible when trading from a margin account, which is necessary for forex trading. If there is a big enough market gap and your margin close-out (liquidation call) is executed at a considerably worse rate than expected, you can lose more than your initial deposit even if you aren’t using extreme leverage. floodCaution: Market anomalies or flash crashes are always possible, even if rare, and can result in a negative balance when trading from a margin account. That said, high-leverage trading can result in considerable losses even without a significant market anomaly. For example, say you’ve opened a $1 million position using 1000:1 leverage with a $2,000 margin account balance. In this scenario, a market move of just 10 pips represents $1,000. Given that the market can move 10 pips in just seconds (multiple times a day), you can see how quickly your deposit can be lost using this kind of leverage. A free demo account may be a good way to simulate the effects of high leverage or large trades that can result in forced liquidation. Read my guide to the best forex demo accounts .

Which forex brokers have the highest leverage?

While some brokers may offer 1000:1 leverage, they are often scam brokers or have questionable dealing practices and are best avoided. The most trusted brokers that offer higher leverage or the lowest margin requirements will generally limit it to a maximum of 400:1 (and such leverage is only available in certain jurisdictions). To put this in perspective, 400:1 leverage would enable a trader to control $1 million worth of currency with just $2,500 in their account as margin, while 1000:1 would only require $1,000. travel_exploreSwiss banks in focus: In my research, I've found that the best brokers for high leverage are also licensed as Swiss banks. These brokers offer the benefits of holding a Swiss bank account with no regulatory restriction on leverage (other than what the broker may impose). Swiss banks are also protected under the Tier-1 regulatory umbrella of FINMA (which includes deposit insurance for bank account holders, including securities of value up to 100,000 Swiss francs via esisuisse ).

What are the leverage limits in the UK?

Similar to the leverage restrictions in place in the EU by the European Securities and Markets Authority (ESMA), the UK’s Financial Conduct Authority (FCA) has retained its leverage caps in the UK at the same levels post-Brexit. These limits range from 30:1 for major currency pairs to as little as 2:1 for cryptocurrency CFDs. Here is the full breakdown: Major currency pairs: 30:1 (3.33%) Non-major currency pairs: 20:1 (5% margin) Commodities except gold and non-major indices: 10:1 (10% margin) Individual shares and other index values: 5:1 (20% margin) Cryptocurrencies: 2:1 (50% margin) Read my guide to the best UK brokers for more information.

What are the leverage limits in Australia?

Recently the Australian Securities and Investment Commission (ASIC), following in the footsteps of the EU and UK regulators, implemented the same restriction levels to cap forex leverage in Australia ranging from 30:1 to 2:1. The restrictions also included negative balance protection mechanisms, standardizing how liquidation calls (i.e., margin close-outs) are handled, and other rules related to promotions (i.e., deposit bonuses and rebates). It’s worth noting that ASIC found that within the first months of implementing the leverage reduction, there was a 91% reduction in net client losses, from $372 million to $33 million on average per quarter. There were also 51% fewer “loss-making” clients and an 87% reduction in margin close-outs (i.e., liquidations) and negative balances. This attests to the value of choosing a broker with reasonable leverage limits to protect you from volatility and large losses. Australian forex traders can find highly trusted, well-regulated brokers by checking out my guide to the best forex brokers in Australia .

What is the maximum leverage allowed in the United States?

In 2024, the maximum leverage in the US remains capped at 50:1 (2% margin) for major currency pairs and 20:1 (5% margin) for non-major pairs, per member rules from the National Futures Association (NFA) and following CFTC regulations. Many US brokers may include additional self-imposed margin requirements beyond those regulations depending on the specific currency pair and trade size. This leverage cap by the NFA at 50:1 leverage in the US applies to the major currency pairs, such as those that involve: the Australian dollar, British pound, Canadian dollar, Danish krone, euro, Japanese yen, New Zealand dollar, Norwegian krone, Swedish krona, and Swiss franc. Non-major pairs, essentially any currency pair not listed above like the Mexican peso, South African rand, or Brazilian real, have a lower leverage limit of 20:1 due to their tendency to be more volatile. Read my guide to the best US forex brokers .

Best High-Leverage Brokers of 2024

Written by Steven Hatzakis
Edited by Jeff Anberg
Fact-checked by Joey Shadeck

March 30, 2024

ForexBrokers.com has been reviewing online forex brokers for over six years, and our reviews are the most cited in the industry. Each year, we collect thousands of data points and publish tens of thousands of words of research. Here's how we test.

Understanding how leverage works in the forex market is crucial; all forex trades utilise leverage. It’s also essential to understand that high leverage has the potential to amplify losses as well as gains. Leverage is one of the primary reasons many forex traders lose money.

I’ve been using leverage as a forex trader for over 20 years and my guide to the best high-leverage brokers will help you pick one that offers the level of leverage that fits your trading strategy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Which forex brokers can I open an account with?

Select your country of residency below to see which regulated forex brokers will accept you as a new customer for trading forex.

Company	Average Spread EUR/USD - Standard	Minimum Deposit	Overall Rating	Visit Site
IG	0.98 info	£250.00		Visit Site
Saxo	1.1 info	$0		Visit Site
Swissquote	N/A info	$1000
FlowBank	N/A info	$0
XTB	1.00 info	$0 info
eToro	1 info	$10-$10,000
AvaTrade	0.92 info	$100		Visit Site