Author: Eduardo Montero
What online brokers offer the greatest leverage in 2024?
UPDATE: The European Securities and Markets Authority (ESMA), which approved new leverage trading regulations, came into effect on August 1, 2018. These regulations limit the leverage that is available to retail clients of EU brokers. The volatility of the underlying asset determines the maximum leverage allowed.
- Major currency pairs: 1:30
- 1:20 for major indices, gold, and secondary currency pairs
- 1:10 for commodities other that gold and secondary indices.
- 1:5 for equities or other securities
- 1:2 for cryptocurrencies.
These restrictions do not apply to professional clients or brokers who are based in countries other than the European Union.
After having analyzed many online brokers, the table below shows the ones we recommend for investing. We use financial leverage as our criterion. The maximum leverage indicated may not be available on all countries, investment instruments or trading accounts.
| Broker | Key Features | Offer |
|---|---|---|
 Go to XTB | Maximum Leverage: 1:500Website: https://www.xtb.com/ Regulated by: FCA, FSC, CySEC, KNF, DFSA Min Deposit: 0 € / $ Trading Platforms: WebTrader + iOS App + Android App Type of Execution: Market Maker Available Instruments: Over 6100: Forex, indices, commodities, stocks, ETFs and cryptocurrencies. | Excellent customer support. (*) 76%-85% of retail investors lose money when trading CFDs with this broker. |
 Go to XM | Maximum Leverage: 1:30Website: https://www.xm.com/ Regulated by: CySEC, ASIC, FSC Min Deposit: 5 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 Type of Execution: Market Maker Available Instruments: More than 1000: Wide range of Forex currency pairs. Also commodities, precious metals, indices and stocks. | Good customer support and low spreads. (*) Between 74-89 % of retail investor accounts lose money when trading CFDs. |
 Go to Pepperstone | Maximum Leverage: 1:200Website: https://pepperstone.com/ Regulated by: FCA, CySEC, ASIC, BaFin, DFSA, SCB, CMA Min Deposit: 200 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 + cTrader + Trading View Type of Execution: STP / NDD Available Instruments: More than 1200. Specialised in Forex, also offers CFDs on indices, stocks, commodities, cryptocurrencies, ETFs and currency indices. | Low spreads and ultra-fast execution. (*) Between 74-89 % of retail investor accounts lose money when trading CFDs. |
 Go to IC Markets | Maximum Leverage: 1:1000Website: https://www.icmarkets.com/ Regulated by: FSA Min Deposit: 200 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 + cTrader Type of Execution: ECN Pricing Model Available Instruments: More than 2250: More than 60 Forex currency pairs. Also offers commodities, indices, stocks, bonds, cryptocurrencies and futures. | |
 Go to Exness | Maximum Leverage: 1:2000Website: https://www.exness.com/ Regulated by: FCA, CySEC, FSC, FSCA, FSCA, FSC, SDL, CBCS Min Deposit: 0 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 Type of Execution: Market Maker / ECN Available Instruments: Over 250 instruments including more than 100 Forex pairs, commodities, energies, stocks, indices and cryptocurrencies. | |
 Go to Axi | Maximum Leverage: 1:500Website: https://www.axi.com/ Regulated by: FCA, ASIC, DFSA, FSA Min Deposit: 0 € / $ Trading Platforms: MetaTrader 4 Type of Execution: STP / ECN Available Instruments: More than 130 instruments: Forex, indices, commodities and cryptocurrencies. | |
 Go to IQ Option | Maximum Leverage: 1:500Website: https://iqoption.com/ Regulated by: -- Min Deposit: 10 $ Trading Platforms: Own Platform + iOS App + Android App Type of Execution: Market Maker Available Instruments: Over 250 CFDs: Forex currencies, stocks, cryptocurrencies, commodities and ETFs. | (*) RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK. |
 Go to RoboForex | Maximum Leverage: 1:2000Website: https://roboforex.com/ Regulated by: FSC Min Deposit: 100 € / $ Trading Platforms: WebTrader + MetaTrader 4 + MetaTrader 5 + cTrader + iOS App + Android App Type of Execution: STP / ECN Available Instruments: Over 12,000: Forex, stock indices, ETFs, commodities and stocks (over 8400 in R Stocks Trader account). | First and subsequent deposit bonus up to $50,000. (*) Bonus not available for European clients. Check conditions on the broker's website. |
 Go to FP Markets | Maximum Leverage: 1:500Website: https://www.fpmarkets.com/ Regulated by: CySEC, ASIC Min Deposit: 100 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 + IRESS + cTrader Type of Execution: ECN Available Instruments: More than 10,000 tradable instruments: Forex, CFDs, indices, stocks, commodities, metals, cryptocurrencies and bonds. | |
 Go to FBS | Maximum Leverage: 1:3000Website: https://www.fbs.com/ Regulated by: CySEC, FSC Min Deposit: 1 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 + iOS App + Android App Type of Execution: STP / ECN Available Instruments: Over 650 assets: Forex currencies, cryptocurrencies, precious metals, energies and equities. | 100% deposit bonus doubling your deposit. (*) Bonuses are not available for European clients. See conditions on the FBS broker's website. |
 Go to AvaTrade | Maximum Leverage: 1:400Website: https://www.avatrade.com Regulated by: Central Bank of Ireland, ASIC, BVI, FSA, FSCA Min Deposit: 0 € / $ Trading Platforms: WebTrader + MetaTrader 4 + MetaTrader 5 + iOS App + Android App Type of Execution: Market Maker Available Instruments: More than 200. Major, minor and exotic Forex pairs, cryptocurrencies and CFDs on indices, commodities and stocks. | |
 Go to OANDA | Maximum Leverage: 1:200Website: https://www.oanda.com/ Regulated by: FCA, ASIC, NFA, BVI FSC, IIROC Min Deposit: 0 € / $ Trading Platforms: MetaTrader 4 + MetaTrader 5 Type of Execution: Non Dealing Desk Available Instruments: More than 120: Forex, indices, metals, stocks, commodities and cryptocurrencies. |
What is leverage?
Leverage refers to the financial term that describes the ratio of equity capital and credit received when making an investment. This concept is directly connected to the financing of an investment operation with debt. The broker will lend the investor a portion of the funds to cover the cost of the collateral. This allows him to open more positions than he would have with his capital. Financial leverage can be used to increase profits in absolute terms. This is because the same profitability that was achieved in the operation can be applied to a larger capital.
What are the benefits and drawbacks of using leverage?
Leverage allows you to open larger positions than your trading account. It is a very important tool, both in the Forex market and elsewhere. (Who are the best forex brokers?) It is essential when you invest with CFDs as it is virtually impossible to make substantial profits without it. Without an investment of significant volume, it is difficult to make a satisfactory profit in the short-term, since the trade must mature on the basis a greater market fluctuation. Also, because the short-term movements can be very small, it is important to invest more money.
However, it’s a double-edged weapon. High leverage can allow you to make substantial profits if all goes your way. This is because you trade the market with a larger amount than what you deposit. Profits you will reap are based on the entire operation, not just your capital. However, the risk of losing capital and being wrong can be much greater.
A leverage ratio of 1:20, for example, means that you can open market positions of up to 20 USD for every euro you have as collateral. (100 USD is enough to open a position worth 2,000 USD if you have 100 USD as collateral). The equity percentage is 5% in this example.
Because you trade with greater leverage, the lower the percentage means that there is more risk. The equity ratio for a leverage of 1:30 is, for example, 3.33%. It is 20% at a leverage ratio of 1:5. Trading with lower leverage also reduces the possibility of making a profit. Also, the more leverage you have, the greater your risk and the greater the chance of making a profit.
It is crucial to understand the risks and not be lured by excessive leverage. This can cause greater losses and increase your debt. As you gain experience and more knowledge in trading, be cautious.
Online brokers offering maximum leverage levels up to 1:200, 1:1500, or even 1:2000 in Europe have existed until recently. This level was greatly reduced for retail clients by recent regulatory changes to a maximum limit of 1:30 for trading major currency pairs on the Forex market. It is even lower for volatile financial instruments. The level of flattening that is allowed outside Europe is much higher. The CFTC (Commodities Futures Trading Commission), in the United States prohibits leverage greater than 1:50. You can pick the one that is most convenient for you, or you can change it to suit your needs.
Please note that it is always advisable to work only with regulated brokers and you can start by opening a demo account to test the broker’s conditions, quality of service, trading platforms,…
GENERAL RISK WARNING:
The financial products offered by the broker carry a high level of risk and may result in the loss of all your funds. Never invest money that you cannot afford to lose.
This post is also available in Spanish: brokers apalancamiento, German: broker hebelwirkungr
Author: Eduardo Montero
Welcome to Mundo-Forex.com: I'm Eduardo Montero, I work professionally in IT. I started trading in the financial markets (mainly Forex) more than 10 years ago. I'm the author of the articles on this website and of many others published on other websites specialised in stock market investment and finance in general. Learn more about me here: About the author.