Zornitsa Stefanova
Zornitsa Stefanova is a Financial Research and Platform Testing Analyst at BestBrokers.com, specialising in hands-on reviews of forex, cryptocurrency and stock trading platforms. She evaluates brokerage companies from a user-focused perspective, testing key areas such as account setup, trading conditions, platform usability, available markets and overall reliability.
| Expert Editor 
Eugene Lee, CFA
Eugene Lee, CFA, is the Head of Research at BestBrokers.com, where he draws on more than two decades of experience in global markets, portfolio management, derivatives, and fintech to evaluate online brokers. His background in institutional investing and quantitative research helps ensure that broker reviews are based on data, risk assessment, and real-world trading conditions. 
| Updated: Leverage is a crucial element in forex trading, influencing the risk associated with your trades and your potential returns. Because high leverage creates a much greater risk of large losses, many financial regulators around the world have introduced leverage limits. Under trading regulations imposed by the Commodity Futures Trading Commission (CFTC), brokers authorized to operate in the US are allowed to offer maximum leverage of 1:50 on major currency pairs and 1:20 on exotic and non-major pairs.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro52% of retail investor accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
Global Prime74-89% of retail CFD accounts lose money
VantageTrading leveraged products is risky
IG67% of retail client accounts lose money when trading CFDs with this investment provider.Some jurisdictions allow much higher leverage ratios for currency trading, such as 1:100, 1:500, or even higher. While these ratios can increase potential returns, they also amplify losses. That said, many brokers allow traders to manage trade risk by selecting lower leverage, which can still be around 1:50.
Below are some of the regulated forex brokers that offer retail traders leverage of 1:50 on major pairs. Each broker listed below is regulated and offers leverage ratios around 1:50.
Fusion Markets launched its trading services on May 31, 2019, with the brand authorized by regulators including the FSA, ASIC, and VFSC. Serving forex and CFD traders from over 160 countries, Fusion Markets offers cost-effective conditions and supports platforms and tools such as MT4, MT5, cTrader, DupliTrader, and TradingView.
Forex traders can access over 90 major and exotic currency pairs, with low commissions and competitive spreads. Opening a Zero account allowed us to trade EUR/USD with spreads of 0.0 pips. XAU/USD spreads were also low at 10.3 pips, while US500 spreads stood at 3 pips. The broker charged a low round-turn commission of $4.50. A Classic account offers commission-free trading, but it adds a 0.9-pip markup.
Leverage limits depend on jurisdiction and account type. At the VFSC-licensed entity, we could trade FX majors and metals with retail leverage of 1:50, with ratios available up to 1:500. During testing, leverage for indices and cryptocurrencies was capped at 1:100 and 1:10, respectively.
In Australia, accessing leverage of 1:50 or higher required a Fusion Pro account, as retail leverage is capped at 1:30. Our Australia-based testers qualified by passing the Sophisticated Investor Test, which requires either one year of professional financial experience or passing a knowledge quiz, proving 20+ qualifying trades per quarter, and showing A$1 million in trading volume across four quarters within the last two years.
Clients can also qualify through the Wealth Test, which requires net assets of at least A$2.5 million or annual gross income of A$250,000 over the last two financial years. Proof must come from a qualified accountant’s certificate issued within the past six months. Negative balance protection is available only to retail traders residing in Australia.
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. FP Markets
FP Markets is an Australian-based broker that has been operating since 2005, providing competitive forex trading conditions for its clients. Today, the brand operates in numerous forex markets and is regulated by authorities such as ASIC, CySEC, the FSAS, the FSCM, and others.
By opening a Standard account and setting leverage to 1:50, our reviewers accessed 60+ major, minor, and exotic currency pairs. EUR/USD spreads averaged 1.17 pips, while XAU/USD and US500 CFD spreads averaged 23 pips and 2.5 pips, respectively. We were not charged commissions. The Raw account lowers EUR/USD spreads to 0.07 pips but applies a $3 commission per lot, per side. Beyond forex, indices, and metals, we could also trade energies, soft commodities, stocks, cryptocurrencies, and exchange-traded funds.
Available leverage varies by currency pair and jurisdiction. EU traders seeking higher ratios, such as 1:50, 1:100, or higher, can upgrade to professional accounts. To qualify, our team had to meet at least two of three criteria: a financial portfolio above €500,000, one year of relevant professional financial experience, or ten qualifying transactions of at least 1 lot per quarter over the past four quarters. However, pro account holders are not eligible for negative balance protection.
Leverage ratios for professional traders range from 1:2 to 1:500 based on asset class and market. Leverage of 1:500 is also available to retail traders registered under the Seychelles-regulated division.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.33% 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. Licensed in the Seychelles and New Zealand, BlackBull Markets is an option for traders looking for high leverage, as it offers maximum ratios of 1:500 for select markets such as forex.
We have confirmed that leverage caps are symbol-specific, with 1:50 ratios available for XRP/USD and ADA/USD, among other cryptocurrency markets. Indices such as the Nasdaq 100 and commodities such as Brent oil offer maximum leverage of 1:100, while copper CFDs can be leveraged at up to 1:400. Leverage for stock CFDs is considerably lower at 1:5. Overall, clients have access to over 26,000 markets.
Our evaluation process involved opening an ECN Standard account, which allowed us to trade EUR/USD with spreads of around 0.8 pips and leverage of 1:50. XAU/USD spreads averaged 12 pips, while the SPX500 index showed average spreads of 6 pips. The ECN Prime account lowered average forex spreads to around 0.1 pips, but added a $6 round-turn commission.
We used the MT5 platform during testing, although MT4, TradingView, and cTrader are also available. We also benefited from negative balance protection, while client funds were held in segregated accounts at New Zealand’s ANZ Bank.
Minimum forex positions generally start at 0.01 lot, allowing traders to gain market exposure with limited capital. ECN Standard and ECN Prime accounts have no minimum deposit requirement. The invite-only ECN Prime+ account offers volume-based rebates, with the entry tier requiring monthly turnover of at least 200 lots.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.- 4. Plus500
Plus500 has been a major presence in the online trading industry since its inception in 2008. Currently, the brand is a widely recognized broker serving global traders, covering over 2,800 markets, including forex, indices, stocks, and more. Plus500 has been authorized to operate in multiple jurisdictions, with regulators such as the FCA, ASIC, CySEC, and the Seychelles FSA overseeing the broker’s operations.
Plus500 provides CFD trading on more than 60 currency pairs, with account options that vary by jurisdiction and client classification. Our reviewers tested the commission-free Retail account, which enabled EUR/USD trading with average spreads of 0.9 pips. Gold spreads typically stood at 73 pips, while CFDs on the SP500 index averaged around 7 pips. Beyond CFDs, Plus500 also offers forex futures contracts that provide exposure to various currencies against the US dollar.
Maximum leverage depends on the forex rules in the client’s country of residence. Based on our testing, retail traders outside Australia, the EU, and the UK can access leverage of 1:50 on various currency pairs. Clients from the EU, Australia, and the UK can use leverage of up to 1:300, but only if they qualify for professional accounts.
To open a professional account, our EU-based reviewers had to meet at least two of three criteria: at least 10 large transactions per quarter over the past 12 months, an investment portfolio above €500,000, or at least one year of professional experience in the financial sector. Both retail and professional clients can use negative balance protection, but professional clients waive their Investor Compensation Fund rights.
This information is not relevant to EU residents who are served by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, which is authorized by CySEC (Reg. 250/14). Different regulatory requirements, such as leverage limitations and bonus restrictions, apply in Europe to the Plus500 promotion.
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. - 5. eToro
eToro offers its clients a selection of over 7,600 financial markets, competitive spreads, fast execution, and 56 currency pairs to trade. Founded in 2007 in Israel, eToro serves over 40 million customers worldwide as of October 2025. The broker is licensed by multiple regulators, including the FCA, CySEC, ASIC, FSAS, and FSRA.
eToro provides leveraged trading with zero commissions on most instruments. After opening a retail account, we were quoted spreads from 1 pip on EUR/USD, while gold and SPX500 spreads averaged 102.5 pips and 11.1 pips, respectively. As we registered through the FSAS-licensed entity, we could set our leverage to 1:50.
Due to regulatory limits in Europe and Australia, eToro can offer retail forex traders maximum leverage of 1:30 in these jurisdictions. Clients who want higher ratios must qualify for professional accounts. Non-EU and non-Australian traders can access 1:50 leverage on minor and exotic currency pairs, while FX majors are available with ratios of up to 1:400. Commodities and major indices can also be traded with leverage of 1:50 or higher. However, traders should use higher ratios, such as 1:400, carefully, as they can quickly amplify losses.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 52% 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. XM Group
Since its inception in 2009, XM has grown to serve over 10 million clients across more than 190 countries, operating under authorization from CySEC, ASIC, and IFSC. The broker offers over 50 currency pairs, with MT4 and MT5 available as trading platforms.
We opened a retail account at the IFSC-regulated entity, where EUR/USD spreads averaged 1.1 pips, with a minimum spread of 0.8 pips. Other instruments tested included XAU/USD, where spreads averaged around 12.5 pips, and the US500 index, where average spreads stood at 5.2 pips. We also opened a Zero account, which applies a $3.50 commission per lot, per side, and offers spreads from 0.2 pips. Our testers traded major currency pairs, indices, and gold with leverage of 1:50, while traders outside CySEC and ASIC jurisdictions can access leverage of up to 1:1000 on select markets.
Retail traders under CySEC and ASIC regulation are subject to a 1:30 leverage cap on major currency pairs. To access higher ratios, our Europe-based reviewers had to open a professional account. We remained eligible for negative balance protection after approval, as XM Group extends this safeguard to all traders, regardless of jurisdiction or account status.
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. - 7. IG
Founded in 1974, IG has built a global presence, serving over 400,000 clients under the oversight of regulators including the FCA, CFTC, ASIC, and FMA. IG covers a broad range of markets, with over 90 currency pairs among 17,000 available instruments.
Trading through IG’s zero-commission CFD account, our testers recorded EUR/USD spreads of 0.86 pips. XAU/USD spreads averaged 30 pips, while the SP500 spread stood at around 1 pip. The DMA account gave us access to lower EUR/USD spreads of 0.165 pips, but applied a $3 commission per lot, per side. During testing, our reviewers used the Bermuda-licensed entity and traded with leverage of 1:50.
Maximum leverage varies depending on the regulatory entity governing the trader’s account. Clients at the CFTC-licensed branch can use leverage of 1:50 on spot FX majors, in line with US rules. Professional European traders can access leverage of up to 1:222 on major pairs, indices, and gold, while retail clients under the Bermuda-regulated entity can use ratios of up to 1:200. Negative balance protection is available to most traders, except clients trading under entities regulated by the CFTC, NFA, JFSA, and FSCA.
CFDs are complex instruments. 67% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 8. FBS
Founded in 2009, FBS has attracted over 27 million traders across more than 150 countries. The broker offers educational materials and events for beginner and professional traders. With over 550 tradable instruments, FBS provides access to more than 70 currency pairs.
Our evaluation of FBS involved using leverage of 1:50 to trade EUR/USD, where spreads averaged 1.1 pips and reached a minimum of 0.8 pips. The broker also supports XAU/USD trading, where spreads averaged 33 pips during our tests. Our typical spread on the S&P 500 index was around 6 pips.
We used the MT5 platform during testing, although MT4 is also available to FBS clients. Both platforms are supported on desktop and mobile. Since the broker is regulated by the FSC in Belize, CySEC, and ASIC, maximum leverage on major currency pairs varies by jurisdiction.
Under CySEC and ASIC, retail leverage is capped at 1:30, so we accessed leverage of 1:50 and higher through a professional account, which made us ineligible for negative balance protection. Under the FSC license, maximum leverage reaches 1:3000 for accounts with up to $199 in equity, while clients are covered by negative balance protection.
Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider. You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money. - 9. ActivTrades
ActivTrades offers over 1,000 leveraged products, including 54 major, minor, and exotic currency pairs. These can be traded through MT4, MT5, and the proprietary ActivTrader platform. Users can also connect their ActivTrades account to TradingView for advanced charting tools and its social trading network.
While assessing ActivTrades, we traded EUR/USD with average spreads of 0.5 pips. As we registered with the SCB-licensed entity, we had access to leverage of 1:50. We also tested XAU/USD and SP500, where spreads averaged 43 pips and 2.3 pips, respectively.
Apart from the SCB entity, the FSC-regulated entity also allows ActivTrades to offer leverage of 1:50 or higher to retail clients. Eligible traders under these entities can access ratios of up to 1:1000. However, higher leverage also magnifies potential losses, so traders should size positions carefully. This is one reason ActivTrades provides negative balance protection.
For clients in Europe, CMVM and ESMA rules mean leverage above 1:30 is available only to professional traders. To qualify for an ActivTrades professional account, our Europe-based reviewers had to meet the required criteria, including at least 10 large-volume transactions per quarter over the past 12 months, a financial portfolio above €500,000, or at least one year of professional experience in the financial sector. After approval, we retained negative balance protection.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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. - 10. Axi
Axi offers forex and CFD trading with different leverage options, including a 1:50 ratio, depending on the trader’s jurisdiction and classification.
With the Standard account at the FSA-regulated entity, we traded EUR/USD with low spreads of 0.6 pips. XAU/USD spreads were also reasonable at 16 pips, while SP500 spreads averaged 3 pips. Opening a Pro account unlocked spreads from 0.0 pips, but a $3.50 commission per lot, per side, applied during testing. Our balance could fall below $0, as Axi does not offer negative balance protection to clients registered with the FSA-licensed branch.
Since the offshore entity offers retail leverage of up to 1:1000, we were able to trade forex with leverage of 1:50. Registering through the CySEC-licensed entity required our reviewers to open a professional account to access leverage above 1:30.
Our application was approved after we met the required criteria: a history of significant trading activity in leveraged markets, an investment portfolio above €500,000, and at least one year of relevant professional experience in the financial sector. However, satisfying only two of the eligibility criteria is required. Similar requirements apply in Australia and the UK, where negative balance protection is available only to retail accounts.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Forex Brokers with 1:50 Leverage Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. Fusion Markets | 4,873 | 4.8 ⭐ |
| 3. Global Prime | 341 | 4.7 ⭐ |
| 4. FBS | 7,267 | 4.3 ⭐ |
| 5. eToro | 29,171 | 4.2 ⭐ |
| 6. IG | 8,324 | 3.9 ⭐ |
| 7. Markets.com | 1,236 | 3.8 ⭐ |
| 8. XM Group | 2,787 | 2.7 ⭐ |
Comprehensive Comparison of the Top 8 Forex Brokers with 1:50 Leverage
| Forex Broker | Min Account Requirements | Tradable Markets | Negative Balance Protection | Stop-Out Level | Trading Platforms | Trust Pilot Rating |
|---|---|---|---|---|---|---|
| 1. FP Markets | $100 | 10,000+ | Yes (retail clients) | 50% | MetaTrader 4, MetaTrader 5, WebTrader, IRESS, cTrader, TradingView | 4.9 ⭐ |
| 2. Fusion Markets | $0 | 250+ | Yes (ASIC entity only) | 20%; 50% for ASIC clients | MetaTrader 4, MetaTrader 5, cTrader, DupliTrade, Fusion+ Copy Trading, TradingView | 4.8 ⭐ |
| 3. Global Prime | $0 | 150+ | Yes (ASIC entity only) | 50% (ASIC); 20% (VFSC) | MT4, MT4 WebTrader, MT4 Android, MT4 iOS; for VFSC clients: MT4, MT5 (Desktop, WebTrader, Mobile), and GP Copy | 4.7 ⭐ |
| 4. FBS | $100 ($10 for cent accounts) | 550+ | Yes | 20% | MT5 Desktop, MT5 WebTrader, MT4 | 4.3 ⭐ |
| 5. eToro | $50 to $100 (varies by jurisdiction) | 6,000+ | Yes (retail traders) | 50% | eToro Investing, eToro App, TradingView, eToro CopyTrader, proprietary platform | 4.2 ⭐ |
| 6. IG | $0 | 17,000+ | Yes (for limited risk accounts) | 50% | MetaTrader 4, L2 Dealer, ProRealTime, IG proprietary software, TradingView | 3.9 ⭐ |
| 7. Markets.com | $100 | 3,700+ | Yes | 50% | MetaTrader 4, MetaTrader 5, WebTrader, Mobile App, TradingView | 3.8 ⭐ |
| 8. XM Group | $5 | 1,400+ | Yes, for retail clients | 50% | MetaTrader 4, MetaTrader 5, MT4 WebTrader, MT5 WebTrader, MT4 MultiTerminal, XM App | 2.7 ⭐ |
What Does Leverage Mean in Forex Trading?
If you are new to forex trading, leverage is one of the key terms to understand. Traders use leverage to amplify their exposure to currency markets. The forex trading sector offers some of the highest leverage ratios, which means forex traders can take on larger positions relative to their capital.
Leverage can be described as a type of loan traders receive from the broker to increase their exposure when trading currency pairs. The broker needs collateral for the money it lends to traders, with the funds deposited into their margin accounts serving as security. By taking advantage of leverage, forex traders can place orders that significantly exceed the actual amount available in their accounts.
While using leverage can increase the potential return for forex trades, it also increases the chances of losing large amounts of money. That is why some brokers have introduced limits on maximum allowed leverage, with many major regulators requiring trading platforms to impose mandatory leverage limits on retail trading accounts.
Although traders may be allowed to choose trade size based on the leverage they want to use, brokers usually require a percentage of the traded amount to be held in the trader’s account as cash. This required amount is known as initial margin.
What Is Margin in Trading?
As explained above, margin is used as collateral for the leverage (loan) provided by the broker to traders. Simply put, margin is the money you need to have available in your account. As soon as you deposit funds into your trading balance, you can use leverage when trading forex or any other derivatives offered by the brokerage.
Whenever a trade opened with leverage is closed, the funds in your margin account are available for use again. However, if the entire margin is lost or at risk, traders may no longer be able to use leverage because they will not have sufficient collateral for the loan.
The correlation between the margin and the leverage ratio reveals that the lower the margin requirement, the greater the leverage traders can access. That said, brokers may require higher margins depending on the currencies you are trading. A highly volatile currency pair may lead to significant fluctuations, which, in turn, may result in sharp rate changes. In such cases, the broker may require a larger margin as collateral for the loan.
Leverage Ratios and What They Mean
To help traders determine the potential risk and return linked to a certain leverage level, brokers often use leverage ratios. These ratios show the amplification applied to your position compared to the margin held as collateral. With many regulatory bodies in the forex trading market imposing specific maximum leverage levels on currency pairs, permitted maximums are expressed in the form of leverage ratios. These can be 1:20, 1:50, 1:5000, and so on.
Understanding leverage ratios helps traders assess both the potential return and the risk attached to their trades. Since this article focuses on brokers offering maximum leverage of 1:50, we use this ratio to further explain this trading term. The 1:50 ratio ($50,000 / $1,000) indicates that for a $1,000 deposit (margin), investors can trade $50,000 on a currency pair. The required margin for a 1:50 leverage ratio is 2%, which means investors are required to have at least 2% of the total trade amount in their margin account.
Below, you can see the margin requirements for common leverage ratios allowed in different jurisdictions. Retail traders based in Australia, the United Kingdom, and EU/EEA member states like Germany are restricted to leverage ratios ranging from 1:2 to 1:30, depending on the asset class, under local regulatory requirements.
| Margin Requirement | Leverage | Jurisdiction |
|---|---|---|
| 50% | 1:2 | Cryptocurrencies in Europe, the UK, and Australia |
| 20% | 1:5 | Stocks and ETFs in Europe, the UK, and Australia |
| 10% | 1:10 | Commodities other than gold in Europe, the UK, and Australia |
| 5% | 1:20 | Singapore |
| 3.33% | 1:30 | European Union, Australia, United Kingdom |
| 2% | 1:50 | United States |
| 1% | 1:100 | “Experienced” retail clients in Poland who meet specific regulatory requirements |
| 0.5% | 1:200 | The Bahamas, Bermuda |
| 0.2% | 1:500 | Vanuatu, Seychelles, Mauritius |
| 0.1% | 1:1000 | Vanuatu, Seychelles, Mauritius |
| 0.05% | 1:2000 | Vanuatu, Seychelles, Mauritius |
| 0.03% | 1:3000 | Vanuatu, Seychelles, Mauritius |
| 0.02% | 1:5000 | Vanuatu, Seychelles, Mauritius |
Depending on trade volume, brokers might request different margin rates. Higher leverage and lower margin are typically applied to smaller trades, while standard trading on 100,000 currency units might have a higher margin requirement and lower leverage ratio. You may often see a broker offering a 1:50 leverage ratio on a $50,000 trade, which means the 2% margin would require collateral of at least $1,000 in your margin account.
Risks Associated with High Leverage
Leverage is a tool that should be approached with caution, as it comes with a significant level of risk. Beginners often underestimate how quickly significant losses can accumulate when they use high leverage.
High leverage enables traders to open larger positions repeatedly, which can quickly compound losses across multiple trades, especially if risk management techniques, such as stop-loss orders, are used inadequately or not implemented at all. That is one of the reasons why brokers often allow newly opened accounts to use significantly lower leverage ratios when trading currency pairs.
Leverage is a double-edged sword: it can significantly boost your potential return, but it can also lead to tremendous losses within seconds. Even small market fluctuations can cost you your entire balance and even lead to debt owed to the broker due to the high leverage applied to your trade.
With high leverage, the margin threshold for keeping a position open is much smaller. This increases the likelihood of receiving margin calls or having positions liquidated automatically by the broker, which can lead to realized losses that may exceed the initial margin, especially at brokers where negative balance protection is unavailable.
Excessive leverage often intensifies emotional stress and can lead to impulsive decision-making or failure to stick to a sound trading strategy. Traders using high leverage may experience greater anxiety, which can increase the likelihood of making irrational trades in an attempt to recover losses quickly.
The risks linked to high leverage are why regulators such as the CFTC, FCA, ASIC, and many more have introduced mandatory leverage limits. As already mentioned, brokers licensed to operate in the US are required to limit leverage on major currency pairs to 1:50. Meanwhile, non-major and exotic pairs have an even lower maximum of 1:20, as such currencies are typically less stable and can experience rapid and significant fluctuations.
You might also be interested in exploring the following forex brokers:
- Forex Brokers with 1:100 Leverage
- Forex Brokers with 1:200 Leverage
- Forex Brokers with 1:300 Leverage
- Forex Brokers with 1:500 Leverage
About the Editorial Team