| Updated: June 18, 2024The following top list will introduce you to various trusted and regulated brokers that give retail clients the opportunity to trade with a leverage of 1:200.
IC Markets70.64% of retail investor accounts lose money
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
FxPro74% of retail investor accounts lose money
Vantage FX
FIBO GroupTop 8 Forex Brokers Offering 1:200 Leverage
- 1. FxPro
FxPro is a reputable broker that is regulated by a number of financial watchdogs, the most notable one being the Securities Commission of The Bahamas. This regulator allows brokers to offer a leverage of up to 200:1, making FxPro an excellent option for those willing to take the risk of increased leverage in exchange for the chance of bigger profits. FxPro users can pick between MT4, MT5, cTrader, or the broker’s in-house software when it comes to the platform, and Crypto CFDs, indices, precious metals, and more are among the options in FxPro’s market selection.
Trade Responsibly. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 2. IC Markets
IC Markets is a broker that opened its virtual doors in 2007, and it is known for being reliable and having some of the tightest spreads in the online forex space. As such, many forex brokers the world over have made IC Markets their broker of choice, and its language options reflect this as they include Spanish, English, Vietnamese, and Italian, to name a few.
IC Markets enjoys the regulatory approval of the Seychelles Financial Services Authority, the UK’s Financial Conduct Authority, and the Securities Commission of The Bahamas, the latter of which has set the permissible leverage ratio for retail traders at 200:1.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 3. FIBO Group
FIBO Group is a broker that has been around for over two decades, having been established just years before the turn of the millennium. Its forex markets currently encompass pairs like EUR/USD, GBP/USD, USD/JPY, and dozens more, and the rest of its financial instrument selection caters to those who enjoy trading metals, cryptocurrencies, and CFDs. In terms of platforms, users can go with either of the MetaTrader iterations or cTrader.
The lowest leverage limit stands at 200:1 for MT4 Fixed accounts, while other account types offer leverage twice this amount or much higher. Of course, this only applies if you are not a client from the EU or another jurisdiction where the limits are capped at a threshold lower than 200:1.
- 4. AvaTrade
Inaugurated in 2006, AvaTrade is a broker where one may enjoy leverage of up to 400:1, as this is the cap imposed on retail clients with a standard account. As is the case with other brokers that operate in different jurisdictions, the leverage limits can differ from jurisdiction to jurisdiction, with some regulators mandating a leverage limit tighter than 400:1.
Its educational tools are excellent, with guides and other resources catering to beginners as well as those who wish to refine their knowledge of the ins and outs of trading. As for what one can apply their knowledge to once they are ready, the markets at AvaTrade include forex, ETFs, stocks, commodities, and indices.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 5. Vantage FX
If you are on the lookout for a broker that gives you plenty of options to pick from in terms of platforms and financial instruments alike while allowing for trading with high leverage, Vantage might just fit the bill. This broker has been around for over a decade, and it supports MT4, MT5, TradingView, ProTrader, and, for traders on the go, the Vantage app is available for iOS and Android. Forex leverage is set at 500:1 by default, according to the broker’s FAQ, but clients are reassured that they can change it if they wish. In addition, negative balance protection serves to prevent client balance from falling below zero. Last but not least, the broker boasts 40+ currency pairs in its selection of markets, as well as indices, soft commodities, energy, ETFs, and more.
Fusion Markets made its debut on the online trading scene in 2019, making it one of the younger brokers on our list. With a score of 4.6 on Trustpilot, however, it is clear that Fusion Markets has managed to earn the trust of its clients despite being around for six years at the time of writing. As for its market selection, forex, indices, and soft commodities are among the available choices.
It should be stressed that the Vanuatu Financial Services Commission (VFSC) is among the regulators that have granted Fusion Markets their seals of approval. This means that any retail trader in the jurisdiction of the VFSC can enjoy taking advantage of high leverage.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 7. FP Markets
A well-known and respected name in the online trading scene, FP Markets will prove to be an excellent option for many a forex trader. A leverage of up to 500:1 is available, giving traders much room in terms of how much leverage they can utilize. Freedom of choice seems to be one of FP Markets’ key characteristics, seeing as it extends to the broker’s supported platforms: MT4, MT5, cTrader, and TradingView are provided as options, with the Web Trader version of both MetaTrader iterations also being an option. The selection of markets is also impressive, with dozens of forex pairs along with metals, indices, shares, commodities, crypto, and ETF CFDs all being financial instruments FP Markets users can delve into.
10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money - 8. Global Prime
Global Prime is regulated by both ASIC and the VFSC, with the latter allowing Global Prime to offer a leverage of up to 200:1 to eligible retail clients. Therefore, if you are looking to trade with substantial leverage as a retail client, Global Prime can be an excellent option. Of course, Global Prime’s licenses also mean that the broker adheres to top-notch regulatory standards in terms of the quality of its service and client safety, with users’ money being kept segregated in accounts of secure banking institutions.
An economic calendar, an autochartist, and trading calculators are at the disposal of Global Prime users, and in terms of platforms, one can utilize MT4, MT5, TradingView, or cTrader if they make Global Prime their broker of choice.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
Comprehensive Comparison of the Top 8 Forex Brokers with 1:200 Leverage
| Forex Broker | Min Account Requirements | Tradable Markets | Negative Balance Protection | Stop-Out Level | Trading Platforms | Trust Pilot Rating |
|---|---|---|---|---|---|---|
| 1. IC Markets | $200 for Standard accounts | 2,250+ | Yes (European and Australian Retail traders) | 50% | MetaTrader4, MetaTrader5, cTrader, ZuluTrade | 4.8 ⭐ |
| 2. Fusion Markets | $0 | 250+ | Yes (ASIC entity only) | 20%; 50% (ASIC) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade | 4.8 ⭐ |
| 3. FP Markets | $100 | 10,000+ | Yes (Retail traders) | 50% | MetaTrader4, MetaTrader5, WebTrader, IRESS | 4.8 ⭐ |
| 4. AvaTrade | $100 | 1,000+ | Yes (European and Australian Retail traders) | 50% | MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial | 4.5 ⭐ |
| 5. Global Prime | $0 | 150+ | Yes (ASIC entity only) | 100% | MT4 Desktop, MT4 Webtrader, MT4 Android | 4.1 ⭐ |
| 6. FxPro | $100 | 2,100+ | Yes | 50% | MT4, MT5, cTrader, FxPro Edge (proprietary) | 3.9 ⭐ |
| 7. Vantage FX | $100 | 1,000+ | Yes | 50% | MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading | 3.4 ⭐ |
| 8. FIBO Group | $300/€100 | 60+ CFDs and over 8,000 shares | No | 20%/50% (varies according to account type) | MT4, MT5, cTrader, WebTerminal, FIBO Forex Drive App | 2.9 ⭐ |
What does leverage mean in Forex trading?
When one trades with the use of leverage, they are borrowing money from their broker. It is one of the fundamental aspects of the foreign exchange market that each aspiring FX trader needs to familiarize themselves with. It involves a broker essentially loaning money to a trader so that they can control large positions that substantially exceed one’s cash balance. Leveraged trading is also known as margin trading, seeing as the margin plays a key role when it comes to forex. It should be stressed that although leveraged trading offers exceptional potential for profits, it also carries substantial risk when not used with caution.
What is margin in trading?
When traders speak of the margin, they are referring to a fraction of the trading position that serves as the collateral (or the deposit) for the said position. It is essentially what enables the broker to ensure that the trade position in question remains open. In addition, the amount of margin required is what dictates what the leverage ratio is, which is why utilizing the leverage in forex is often referred to as margin trading. In the following section, we will introduce you to popular margin requirements and their respective leverage ratios, but for now, a margin requirement of 2% can serve as an example. The said percentage reflects a leverage of ratio 50:1.
One can distinguish between two types of margin that play a role in forex trading, the first being the initial margin, which is the deposit your broker will require to open your desired position. The other type is the so-called maintenance margin. If the initial margin was what you needed to open the position, this one is what lets you keep it that way.
Leverage Ratios and What They Mean
The leverage essentially dictates just how much money you are going to control and borrow from your broker when it comes to a certain trading position. In order to read the leverage ratio, so to speak, you can simply think of the number 1 being the balance you will use for the trade (the required margin), while the larger number is the multiplier that dictates the size of the final leveraged position.
Let us imagine that you are planning on trading with an account balance of $5,000 and utilizing all of the said funds. The leverage you have chosen to use is 10:1, where the margin requirement is 10%. Therefore, we can replace the second number with the balance amount, which in this case is 5000, and multiply it by ten. The end result is a position of $50,000. To scale things up, let us say you have chosen to trade with the maximum leverage allowed by the Securities Commission of The Bahamas (200:1), and your capital is the same. Your market exposure in such a scenario would jump to $1,000,000 even though you used the same initial $5,000 deposit.
Do note that if the ratio is 1:1, none of your money is presented to the broker as collateral, which means that you will trade solely with your own money.
| Leverage Ratio | Margin Requirement | Additional information |
|---|---|---|
| 1:1 | 100% | No leverage is being used, the trader is controlling the position only with their own money. |
| 2:1 | 50% | ESMA guidelines dictate this is the maximum leverage permitted for crypto CFDs. |
| 3:1 | 33% | |
| 4:1 | 25% | |
| 5:1 | 20% | |
| 10:1 | 10% | Commodities (excluding gold and other exceptions) are capped at 10:1 as per ESMA rules. |
| 20:1 | 5% | The maximum allowed leverage for minor currency pairs in the EU and the UK if one is a retail trader. |
| 25:1 | 4% | This is the maximum permitted retail forex leverage in Japan. |
| 30:1 | 3.33% | ESMA, the UK’s FCA, and ASIC cap major forex pair leverage at 30:1 for retail clients. |
| 50:1 | 2% | In the US, retail traders cannot use leverage exceeding this ratio. |
| 100:1 | 1% | |
| 200:1 | 0.5% | The regulator of the Bahamas caps retail leverage at this threshold. |
| 400:1 | 0.25% | |
| 500:1 | 0.2% | Most European forex brokers offer 500:1 leverage to professional traders. |
| 1000:1 | 0.10% | Vanuatu’s regulator (VFSC) does not cap retail leverage, making it possible for VFSC-licensed brokers to legally offer leverage of 1000:1 to non-professional clients in the jurisdiction. Most reputable ones avoid this, however. |
Risks Associated With High Leverage
High leverage is considered to be one of the greatest perks of trading currencies, but we should stress that it is far from risk-free. On the contrary, it is the very opposite: apart from amplifying your potential profits, the leverage also serves to increase the amount of money you stand to part with should your position lose. This is why most forex brokers advise caution while trading with leverage and urge traders to very carefully assess the risks before they choose to go with a substantial leverage ratio.
Keep in mind that this is also factoring in negative balance protection. That is, even though you cannot lose more than the balance you have in your account if you are a retail client, excessive leverage can still deliver a hard blow to your existing trading capital by depleting it entirely.
Thankfully, there are ways to manage the risks of leveraged trading, starting with the most simple option of trading with a reasonable leverage ratio. There are also options such as stop-loss orders, which are utilized to close your position automatically once a certain amount of loss is incurred.
You might also be interested in exploring these top forex brokers:
- Forex Brokers with 1:50 Leverage
- Forex Brokers with 1:100 Leverage
- Forex Brokers with 1:300 Leverage
- Forex Brokers with 1:500 Leverage