| Updated: June 18, 2024Leverage is a powerful tool, commonly used in Forex trading, enabling investors to trade larger positions in a currency by using borrowed capital from brokers. As a consequence, leverage can amplify their profits resulting from favorable movements in a currency exchange rate. However, traders must be aware of how to manage leverage properly, as it can also magnify losses if investments perform poorly. We have compiled a list of the best Forex brokers offering leverage of 1:300.
Fusion Markets74-89% of retail CFD accounts lose money
Markets.com74.2% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
BlackBull Markets
XM Group72.82% of retail investor accounts lose moneyFounded in 2017 and headquartered in Melbourne, Australia, Fusion Markets is a reputable Forex broker, offering more than 250 different financial products, competitive pricing, and robust trading platforms. The company has offices in Vanuatu and the Seychelles. The broker has secured the seals of approval of the financial regulators in these jurisdictions, respectively the Australian Securities and Investment Commission (ASIC), the Vanuatu Financial Services Commission (VFSC), and the Seychelles Financial Services Authority (FSA).
Leverage limitations imposed by Fusion Markets depend on several factors such as the trader’s country of residence and the type of trading account in the case of Australia. Fusion Markets’ professional account holders under its Seychelles and Vanuatu licenses must adhere to leverage limitations of 500:1 for Forex. Retail customers under the ASIC license must comply with a maximum leverage of 30:1 for major Forex pairs and 20:1 for minor Forex pairs.
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.- 2. AvaTrade
AvaTrade brings a world-class trading experience to investors willing to profit from CFDs on Forex, stocks, and commodities, among other assets. Traders are equipped with advanced tools, responsive customer support, and robust security, further enhanced by the entity’s seamless regulatory status. AvaTrade holds several trading licenses allowing access to markets monitored by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and South Africa’s Financial Sector Conduct Authority (FSCA).
For markets operating following the regulations of the European Securities and Market Authority (ESMA) AvaTrade offers leverage limits of 30:1 for major currency pairs and 20:1 for non-major currency pairs.
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. - 3. XM Group
Established in 2009, XM is a global Forex and CFD broker, providing traders with the opportunity to profit from Forex, and CFDs on indices, commodities, stocks, precious metals, and energies. The brokerage adheres to the regulatory requirements of several financial regulators, including the Cyprus Securities and Exchange Commission (CySEC), Germany’s Federal Financial Supervisory Authority (BaFin), and the Financial Supervisory Authority of Sweden.
Accounts created under XM Global, monitored by the International Financial Services Commission (Belize), have lower levels of retail client protection. The maximum allowable leverage on some instruments such as forex can reach 888:1.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% 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. - 4. Global Prime
Global Prime is a top-rated broker facilitating trading in Forex, indices, commodities, crypto CFDs, and bond CFDs. With no deposit fees or minimum account requirements, as well as a sufficient range of trading platforms and tools, the broker is equally suitable for new and experienced traders. The company is licensed by the financial regulatory authorities in Australia (ASIC) and Vanuatu (VFSC).
Depending on the traders’ country of origin and the Global Prime entity they trade with, the company allows flexible leverage. Under its VFSC license, the company offers a standard leverage of 100:1 and a maximum leverage of 500:1. Retail customers under the ASIC entity must adhere to leverage limitations of 30:1 for major currency pairs and 20:1 for minor currency pairs.
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. - 5. FXCM
FXCM is yet another properly regulated entity on our list, with licenses from the Financial Conduct Authority in the UK, the Australian Securities and Investment Commission, and the Financial Sector Conduct Authority in South Africa.
New accounts at FXCM are defaulted to a maximum leverage of 1000:1. Accounts funded with more than $5,000 will be allowed a maximum leverage of 400:1. In contrast, accounts financed with more than $50,000 will be moved to a leverage of 100:1 for Forex. The leverage will then be adjusted depending on the equity in the trading account. As stated by the company, it reserves the right to change its customers’ leverage settings.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. - 6. Eightcap
Eightcap is a global financial services broker, authorized by multiple regulatory bodies, including the Securities Commission of The Bahamas (SCB), the Financial Conduct Authority, and the the Australian Securities and Investments Commission. The company empowers traders to find their next investment opportunity across 800+ CFD markets. In addition to the most popular trading platforms, MT4 and MT5, Eightcap offers a TradingView integration.
The broker offers varying leverage options from 500:1 to 1:1, based on the Eightcap entity traders have registered an account with and whether it is a retail or professional one. All trading accounts are set to a leverage of 100:1 by default. Customers have the option to adjust it according to their trading preferences and risk tolerance.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% 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. Black Bull Markets is a multi-regulated broker offering 26K+ tradable assets across Forex, equities, commodities, futures, and indices. With no minimum deposit requirements and leverage of up to 500:1, the platform is equally suitable for novice and advanced traders. The company is regulated by the Financial Services Authority in Seychelles (FSA),
The maximum allowable leverage reaches 500:1 for Forex in particular jurisdictions. Accounts created under the company’s license from the Financial Market Authority (FMA) in New Zealand must abide by leverage limits of 30:1 for major currency pairs and 20:1 for minor currency pairs.
- 8. Markets.com
Established in 2008, Markets.com has 4.7M+ users across more than 170 countries around the globe. With no hidden fees, low spreads, and lightning-fast execution, the award-winning platform welcomes traders of all levels.
Markets.com is a licensed brokerage company authorized by several leading regulatory bodies, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Sector Conduct Authority (FSCA) in South Africa, and the BVI Financial Services Commission (FSC). The maximum allowable leverage for retail accounts created under the first three jurisdictions is 30:1. Holders of retail accounts under the other two regulators must abide by leverage limitations of 300:1.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.2% 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.
Comprehensive Comparison of the Top 8 Forex Brokers with 1:300 Leverage
| Forex Broker | Min Account Requirements | Tradable Markets | Negative Balance Protection | Stop-Out Level | Trading Platforms | Trust Pilot Rating |
|---|---|---|---|---|---|---|
| 1. Fusion Markets | $0 | 250+ | Yes (ASIC entity only) | 20%; 50% (ASIC) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade | 4.8 ⭐ |
| 2. Markets.com | $100 | 3,700+ | Yes | 50% | MetaTrader 4, MetaTrader 5, WebTrader, Mobile App | 4.7 ⭐ |
| 3. AvaTrade | $100 | 1,000+ | Yes (European and Australian Retail traders) | 50% | MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial | 4.5 ⭐ |
| 4. Eightcap | $100 | 800+ | Yes | 50% | MT4, MT5, WebTrader, TradingView | 4.3 ⭐ |
| 5. FXCM | $50 | 300 | Depends on region (N/A in UAE) | 50% (MT4), 100% for UAE | MetaTrader 4, TradingView Pro, Trading Station | 4.2 ⭐ |
| 6. Global Prime | $0 | 150+ | Yes (ASIC entity only) | 100% | MT4 Desktop, MT4 Webtrader, MT4 Android | 4.1 ⭐ |
| 7. BlackBull Markets | $0 for Standard Accounts | 26,000+ | Yes (all clients) | 50% (70% margin call) | MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade | 3.6 ⭐ |
| 8. XM Group | $5 | 1,200+ | Yes, for retail clients | 50% | MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT$ Multiterminal | 2.7 ⭐ |
What Does Leverage Mean in Forex Trading?
The foreign exchange market offers one of the highest amounts of leverage available to traders. Leverage in Forex trading is used to open larger trading positions than what traders would be normally able to use with their account balance. The term denotes a situation where traders use borrowed funds from brokers. Their account balance, or the margin, becomes a form of collateral for the borrowed capital.
Leverage ratios denote how much the trade size is increased as a result of the margin held by the broker. The lower the margin requirement is, the greater amount of leverage can be used. For example, a 100:1 ratio indicates that the trader must have at least 1/100=1% of the total value of the trade as collateral.
The amount of leverage that traders can use for Forex trading depends on the regulatory authority monitoring the financial markets in a particular country. Many jurisdictions, including countries from the European Union, the United Kingdom, and Australia impose standard leverage limits, which vary based on the underlying asset. The restrictions apply to holders of retail trading accounts to protect them from excessive losses.
What Is Margin in Trading?
Margin is the collateral or the minimum account balance traders must put down to open a leveraged trade. Margin requirements vary across different forex traders and the amount of maximum allowable leverage is typically set forth by the respective market regulator under which the broker operates.
It is important to note that leverage and margin are closely related but they are not the same thing. Both refer to borrowing funds to occupy larger positions in the financial market, however, leverage indicates the act of borrowing, whereas margin denotes the actual funds or debt traders take on to invest in financial markets.
In Forex trading, to control a $100,000 position, brokers would require $1,000 from traders’ capital. The leverage, expressed in ratios, is 100:1. Traders are now in control of $100,000, with $1,000. The necessary capital or $1,000 is the “margin”, or the amount they have to give in to use leverage.
The margin requirement is typically expressed as a percentage of the full amount of the position. If the broker requires a 1% margin, traders have leverage of 100:1. The account balance is the full amount of money traders have in their trading account, or their trading bankroll. The term “used margin” denotes the amount of money brokers need to keep traders’ positions open, whereas “usable margin” indicates the rest of the funds available to open new positions. And, finally, traders get margin calls in situations where the funds in their account cannot cover their possible loss.
Leverage Ratios and What They Mean
In finance, leverage is commonly expressed as a ratio, known as the leverage ratio. The leverage ratio represents the position value in relation to the size of the investment required (for instance 100:1), whereas margin is the actual amount held by the broker to create the leverage (expressed as a percentage of the total position). In other words, with 100:1 leverage, traders can control $100 of an asset with $1 (1%) in margin.
Below are the other popular leverage ratios most Forex brokers offer:
| Leverage Ratio | Margin Requirement | Notes |
|---|---|---|
| 1:1 | 100% | No leverage; Open positions are solely backed by the trader’s own funds. |
| 2:1 | 50% | Financial markets operating under ESMA regulations impose a maximum leverage of 2:1 for cryptocurrency CFDs. |
| 3:1 | 33% | |
| 4:1 | 25% | |
| 5:1 | 20% | The maximum allowable leverage for stock CFDs in the EU and stocks in the US. |
| 10:1 | 10% | |
| 20:1 | 5% | |
| 25:1 | 4% | |
| 30:1 | 3.33% | The leverage for major forex pairs is capped at 30:1 in markets governed by top-tier regulators such as the UK’s FCA and Australia’s ASIC. |
| 50:1 | 2% | The maximum allowable leverage for Forex for retail trading accounts in the US. |
| 100:1 | 1% | |
| 400:1 | 0.5% | Switzerland caps leverage for Forex at 400:1. |
| 1000:1 | 0.10% | This extreme level of leverage carries significant risk and is generally not recommended. Brokers of questionable reputation usually offer such a high level of leverage. |
Risks Associated to High Leverage
Even though the prospects of profiting substantially from utilizing leverage are real, it can also go against investors. For instance, if the currency in a pair moves in the opposite direction of what traders hoped would happen, leverage will greatly increase the losses.
The funds traders borrowed from brokers still need to be repaid, potentially leading to financial pressure or bankruptcy. Furthermore, as leverage entails borrowing costs, traders must carefully consider them and decide if leverage is suitable for their financial circumstances.
To avoid such an unfavorable turn of events, traders must adopt a risk management strategy, such as the use of stop-loss orders to keep potential losses under control. Stop-loss orders enable traders to exit a position at a particular price level. They should carefully calculate their position size based on their risk tolerance. Last but not least, diversification is key, so investors must not concentrate their entire capital in one trade or currency pair.
To conclude, traders must carefully assess the potential benefits and drawbacks associated with leverage and make informed decisions based on their own financial situation.
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 1:200 Leverage
- Forex Brokers with 1:500 Leverage