Forex trading has become an extremely popular market. It became so famous, especially between the larger international banks and other financial institutions, that today it is the most liquid market ever.
And it was only natural that retail traders wanted to have a piece of it.
For those people who are not familiar with this term, Forex or FX refers to the foreign exchange. The activity refers to the exchange of a currency to another (a foreign) on, such as swapping the U.S. dollar for euro.
That’s also why traded currencies are presented in pairs. Every pair has a bid price and an asking price. The differences between those two is known as spread, and it’s one of the main factors while trading in the forex market.
With that being said, spread is not the only factor to consider. For instance, many traders are focusing on margin and leverage in order to maximise their incomes.
Thanks to this article dedicated to the best high leverage forex brokers, we decided to analyse the situation and make a list of the best ones.
Defining Leverage
Leverage is a tool available on certain trading platforms which will allow you to borrow money (usually) from a broker and invest it in a financial asset, which in our case are forex pairs.
In the FX market, this tool is extremely important because it allows traders and financial institutes to exponentially increase their gains.
While increasing your eventual gains though, leverage also increases the risk in the case of a bad investment. That is why it should be used carefully to avoid big losses which will damage you and your finances.
Leverage comes in ratios, such as 50:1, 100:1 or 200:1. Which means that, by using a leverage of 200:1 for example, with 1.000 dollars you can make a deal for 200 thousand dollars.
Before you get to that point, there are certain requirements to respect which are called margin. This is based on the deposit needed to have the rest of the money “borrowed” to perform the operation.
Margin’s percentage usually goes from:
- 2%
- 1%
- .5%
- .25%
Meaning: the lowest the margin required by the broker, the highest the leverage ratio it is.
Our Top 2 Picks
Margin and leverage ratio may change sensibly depending on which currency pair we are intended to invest on and, most of all, our broker’s choice.
To conclude the article and help you start using this financial tool in the best way possible, we wanted to give you a list of our top 2 picks regarding high leverage brokers in 2021.
- FBS: a top Forex broker with high leverage and clients in over 100 countries around the world. Leverage offered with this service reaches 3000:1 in IFSC regulated regions. Trading platforms MetaTrader 4 and 5 are included in the service.
- HotForex: based in Cyprus, this broker is a top CFD provider with a high leverage offered to their clients. Under FSA regulation leverage allowed can reach up to 1000:1. Trading platforms MetaTrader 4 and 5 areincluded in the
