19 June, 2020 | AtoZ Markets – Forex trading has massively grown in recent years. In fact, in a survey conducted by the Bank for International Settlements in April 2019, the global daily Forex trading volume has increased to $6.6 trillion in 2019, up 34% from the previous report three years prior. This only shows that the popularity of Forex trading has significantly increased in just three years. A large trading volume makes the FX market liquid, meaning there are market participants always willing to buy and sell currencies.
When you plan to enter the Forex market, the first question to ask is how much it is going to take you to get started. What’s interesting about trading Forex is that it allows the masses to diversify their investment portfolio without breaking the bank. The market, which was once intended for wealthy investors, is now within anyone’s reach.
Forex companies provide traders with the opportunity to start their trading journey with as low as $50. Now you might ask, “how far can $50 go? Can I make substantial profits with this initial capital?” The answer is yes. You can expand this amount by using leverage. Leverage in simplest terms is money that Forex brokers lend you.
Forex Leverage Ratio
Thanks to Forex brokers, you can now control large amounts of money with less capital. Forex leverage ratio ranges from 1:20 to as high as 1:3000. Let’s say your initial capital is $50. With a 1:100 leverage, you can control $5,000 funds ($500 x 100). With this expanded capital, you can earn more profits.
While leverage is an advantage, especially for new traders with limited capital, it can also work against you. You may equally suffer higher losses when the market goes against your trades. Thus, we always advise our readers to practice safe Forex trading. Also, check first with brokers their terms and conditions on leverage and margin.
As we’ve said earlier in this blog, the leverage offered by brokers can go as high as 1:3000. But this leverage is just for traders outside the jurisdiction of the U.S. US Forex companies on TopBrokers.com have to adhere to the guidelines of the National Futures Association and the Commodity Futures Trading Commission which limit the highest leverage to 1:50 for major currency pairs.
So which US Forex brokers offer the highest leverage? We’ll discuss it below.
US Forex Companies with Highest Leverage
- FXGlory: Founded in 2011, FXGlory tops our list of Forex brokers with the highest leverage in the Forex business. With client satisfaction as their number one priority, the company offers clients trading tools to assist them in achieving success in this venture. Using a standard trading account, trade can enjoy FXGlory’s VPS feature for faster execution of trades.
FXGlory offers its clients outside the U.S. leverage as high as 1:3000, which is arguably the highest in the market today. Meanwhile, U.S. residents are eligible for maximum leverage of 1:50 for major currency pairs.
- AAAFX Trading: Next to our list is AAAFX Trading, which offers maximum leverage of 1:2000. Since 2008, this Forex broker has been providing top-notch Forex trading services to thousands of clients from 176 countries globally. AAAFX prides itself in providing its clients 24/5 support in 11 languages. With its 1:2000 leverage, small-time traders can control bigger capital with less.
For clients residing in the U.S., the maximum leverage is 1:50.
- Forex.com: Owned by Gain Capital, Forex.com is known for its cutting-edge trading solutions to meet the demands of traders. Gain Capital and its companies hold licenses in 7 different countries. Also, this broker doesn’t disappoint in providing quality execution on every trade, as well as transparent and competitive pricing.
Traders from the U.S. can use a leverage of up to 1:50, while traders outside this country can use maximum leverage of 1:400.
- IG: IG Group owns IG, which was established in 1974. The IG Group is heavily-regulated, holding regulations in countries such as Germany, Switzerland, Australia, Japan, New Zealand, and Singapore. With this, traders who invest their money in them must not worry about fund safety.
The highest leverage for non-US clients is 1:200, while 1:50 for U.S. clients.
Forex traders are fortunate that even with a small starting capital, they can expand their trading horizon, thanks to Forex brokers that provide leverage. Leverage, when used properly, can be any trader’s ally. Leverage is called a double-edged sword for a reason. It can lead you to either higher Forex profits or higher losses.