- Highest FX Leverage Ranking
- The highest leverages can be limited
- High Leverage involves High Risks
Highest FX Leverage Ranking
Leverage is one important element for trading Forex and CFDs,
Reducing risk exposures is possible with any brokers, but there is a limit for increasing the exposure in order to earn more profits.
So higher the leverage is, more the opportunities and it is always good to have more opportunities for your tradings.
Here, we will introduce three online Forex and CFD brokers with high leverage and good reputations.
1. FBS with 1:3000 leverage
FBS is a broker based in Russia and regulated by IFSC currently.
The broker offers the highest leverage in the world, which is 1:3000.
FBS is one of the biggest online brokers in the world. The reasons why traders choose FBS would be:
- The highest leverage in the world
- Gorgeous Bonus Promotions
- Excellent customer services
So the highest leverage is available with a bit limited conditions.
FBS is stable and it wouldn’t be a wrong choice to trade with this broker.
LMFX with 1:1000 Leverage
LMFX is a relatively new broker based in Macedonia. The broker came up last year and growing rapidly with its stable operation right now.
LMFX offers up to 1:1000 leverage and there are also luxurious bonus promotions like FBS.
Generally there is no leverage restrictions according to account balances, so you can use the highest leverage with any account balances with LMFX.
Its customer service may have got the highest quality among other brokers, and over the years, there is no negative reviews at all against this broker.
Are you looking for your broker? LMFX is recommended by us.
3. XM with 1:888 Leverage
XM has been operating for about 7 years and its market is growing steadily and globally.
The highest leverage is 1:888.
The broker has got no major issues before and we are happy to recommend them for traders.
Example of a Leveraged Forex Trade
You have $10,000 equity in your trading account and you anticipate the EUR will depreciate against the USD.
To reflect this opinion you need to open a trade where you sell EUR against USD, the current quote is 1.4848/1.4850.
You consider that you are fairly confident in this prediction and will use a trade amount of 1 Lot ($100,000) and so you Sell 1 Lot EURUSD at the bid price of 1.4848.
The maximum permitted leverage for your account value is 1:200.
The margin requirement for the trade is therefore $500.
Later in the day and as you predicted, the EURUSD price falls to 1.4798/1.4800 and to close the position you buy back 1 lot EURUSD at 1.4800.
The trade has made a profit of 48 pips, that’s $480.
In this case the leveraged investment of $500 returned a profit of $480.
The highest leverages can be limited
Leverage always comes with conditions even if your broker mentions that they do not restrict leverage in any cases.
These above brokers may restrict maximum leverage if,
- The account balance is too high
- The trading volume is too large in total in the account
- You prefer News time trading with the highest leverage
These are just some examples, and your broker will contact you if they will need to change the leverage limitation in order to manage risk exposures.
High Leverage involves High Risks
In order to manage risk, a trader should utilize the risk management tools offered by your online FX brokers.
In Forex market, you are given a myriad of orders which can be used to manage the risk you take on in the market.
To begin, risk in trading is simply defined as how much you wager to lose in order to attain some level of gain.
Rather than risking all you have deposited on every trade, risk can be managed in a few ways.
The utilization of lower leverage can limit downside risk however, not always.
The below chart shows, in general terms, the relationship between trading risk and leverage used.
The reason risk decreases as you approach full use of your available leverage is because you are more likely to be taken out of the market due to margin liquidation than you are using less leverage.
The margin liquidation level, which you flirt with when utilizing all available leverage, acts as a “natural” stop loss order.