| Updated: July 3, 2024Hunting for brokers offering higher leverage to retail forex traders? If so, this is just the right page for you. The members of our team invested hours in research to identify the best forex brokerages whose retail customers can benefit from 1:500 leverage. All 8 brokers on our toplist are regulated, fair, and safe to trade with, not to mention they offer some of the tightest spreads around.
Fusion Markets74-89% of retail CFD accounts lose money
IC Markets70.64% of retail investor accounts lose money
easyMarkets71% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
XTB80% of retail investor accounts lose money
BlackBull Markets
FBS72.12% of retail investor accounts lose money
FXTMTop 8 Brokers with 1:500 Leverage
BlackBull Markets is an award-winning ECN brokerage that delivers a best-in-class trading environment for clients from over 180 countries. The New Zealand-based company enjoys a rock-solid reputation for being a reliable and fully regulated broker. It operates with licenses from FMA, FSA Seychelles, ASIC, and the UK’s FCA. BlackBull Markets facilitates trading with over 26,000 financial instruments, offering lightning-fast order execution and very favorable prices.
Retail customers from certain countries have access to a maximum leverage of 1:500. Traders can conveniently adjust their leverage caps from the client portal of their live accounts. CFD traders receive margin call notifications when their available balance drops under 70%. BlackBull Markets liquidates losing positions in accounts with margin percentages below 50%.
- 2. IC Markets
IC Markets launched operations in 2007 and quickly became a top choice for traders looking for institutional pricing, fair trading conditions, and asset diversity. The Sydney-based company provides a choice from over 60 currency pairs tradable with leverage as high as 1:1000 in certain jurisdictions. With this in mind, IC Markets customers can use lower leverage to suit their risk tolerance and trading style.
Registered traders can request lower leverage ratios from the client area of their accounts. The broker normally processes leverage change requests within one business day. IC Markets is ideal for scalpers and algorithmic traders, giving them access to competitive prices and spreads as low as zero pips. Copy trading is an option for customers who set up cTrader accounts with the broker.
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. Eightcap
Eightcap is a multi-regulated broker offering over 800 CFD markets for forex, shares, commodities, indices, and cryptocurrencies. Customers will benefit from tight spreads, smooth order execution, and highly efficient support service. Trading at Eightcap is possible via robust third-party platforms like TradingView, MetaTrader 4, and MetaTrader 5.
The SCB-regulated brokerage provides flexible leverage rates, ranging from 1:1 to 1:500 for retail customers registered via its Bahamas entity. It is worth mentioning that newly created accounts are defaulted to 1:100, but traders with bigger risk appetites can request a leverage increase from their client portal. However, customers must meet the broker’s requirements for minimum account equity to gain access to higher leverage.
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. In business since 2017, Fusion Markets is an excellent option for traders looking for no-dealing-desk order execution, low-cost pricing, and tight spreads. The broker caters to customers with over 90 forex pairs but commodities, stocks, and equity indices are also readily available to clients seeking portfolio diversification. Fusion Markets is ideal for large-volume traders and beginners alike as it has no minimum account requirements.
Aussie retail traders can access leverage of up to 1:30. The rates increase to 1:500 for clients registering via the Vanuatu and Seychelles-licensed entities of Fusion Market. This maximum cap applies only to less risky forex and precious metal trades. CFDs involving equity indices and cryptocurrencies can be leveraged at ratios of 1:100 and 1:10, respectively.
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.- 5. FBS
Launched in 2009, FBS is a Belize-based CFD provider serving millions of traders from over 150 jurisdictions. The experienced broker facilitates trades with north of 550 instruments across major asset classes like forex, indices, stocks, and commodities. Customers can access these markets via live MT4 or MT5 accounts. Testing the broker’s services risk-free via demo accounts is an option.
Retail traders registering via the ASIC or CySEC entities can take advantage of 1:30 maximum leverage. This cap increases dramatically under the Belize entity, where clients can leverage their positions at maximum rates of 1:3000. FBS offers negative balance protection and closes out losing leveraged positions when a client’s margin drops below 20%.
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. - 6. easyMarkets
EasyMarkets is an established online broker that provides trading with various assets, such as forex, crypto, commodities, and stocks. The broker has been doing business with customers for over two decades. It offers several account types to meet the needs of traders across the board, including Standard, Premium, and VIP accounts. The company carries licenses from the regulators of Australia, Cyprus, the British Virgin Islands, and the Seychelles.
Leverage caps at easyMarkets vary based on your country and account type. The Seychelles-regulated version of the platform offers leverage of up to 1:2000 on MT5 accounts. The maximum leverage ratios for TradingView and MT4 accounts are set at 1:200 and 1:400, respectively. MT5 accounts at easyMarkets come with negative balance protection but may be subject to slippage.
Trade Responsibly: CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money. Please refer to our full Risk Disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07). - 7. FXTM
At FXTM, novice and seasoned traders alike can explore over 1,000 tradable instruments such as forex, crypto, precious metals, energies, and shares. The broker falls under the regulatory purview of the FSCA in South Africa and the FSC in Mauritius. Registered clients will benefit from seamless order processing, tight spreads, and flexible leverage rates, ranging from 1:1 to 1:2000.
Leverage caps at FXTM depend on the national value of one’s live account and the instruments they are trading. The platform is suitable for inexperienced small-scale investors as customers can open positions as small as one micro lot. Clients can sharpen their skills in FXTM’s Knowledge Hub where they will find trading guides, informative videos, economic calendars, and more.
- 8. XTB
XTB is a multi-licensed broker with over two decades of market experience and more than one million satisfied customers worldwide. The company is publicly traded on the Warsaw Stock Exchange and has registered offices in over a dozen countries, including France, Germany, and Chile. It has procured licenses from the world’s strictest financial regulators like the CySEC, FCA, DFSA, FSC, and KNF.
Clients can trade over 2,300 leveraged instruments with competitive spreads starting from 0.1 pips for forex majors. Customers accessing the platform from specific locations can leverage their trades at ratios as high as 1:500. The broker has no minimum deposit requirements, allowing clients to trade in micro lots. On the downside, no negative balance protection is available to CFD traders registering through XTB’s Belize-regulated entity.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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 1:500 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 | 4.9 ⭐ |
| 2. IC Markets | $200 for Standard accounts | 2,250+ | Yes (European and Australian Retail traders) | 50% | MetaTrader4, MetaTrader5, cTrader, ZuluTrade | 4.8 ⭐ |
| 3. easyMarkets | $100 | 300+ tradable markets | Yes, for MT5 accounts | 50% | easyMarkets, MetaTrader 4, MetaTrader 5, TradingView | 4.5 ⭐ |
| 4. Eightcap | $100 | 800+ | Yes | 50% | MT4, MT5, WebTrader, TradingView | 4.3 ⭐ |
| 5. XTB | No minimum account requirements | CFDs on 1,500+ markets | Yes (EU, UK, and MENA regions) | 50% | xStation 5, xStation Mobile | 3.7 ⭐ |
| 6. 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 ⭐ |
| 7. FBS | $100 ($10 for cent accounts) | 550+ | Yes | 20% | MT5 Desktop, MT5 WebTrader | 3.6 ⭐ |
| 8. FXTM | $500 | 1,000+ tradable instruments | Yes | 20% | MT4 MT5 | 3.5 ⭐ |
How Leverage Works in Forex Trading
Leverage enables retail traders to gain greater market exposure with smaller deposits as it involves using capital borrowed from your broker to invest in currencies, shares, or other securities. It can be a handy tool in the hands of seasoned traders, allowing them to collect higher returns on their investments even from nominal price fluctuations.
Forex traders commonly resort to using leverage when speculating on future price movements with contracts for difference (CFDs). Leverage is like a multiplier representing the money traders can borrow from their brokers per every currency unit they invest. Here is an example to show you how leverage works in practice.
A person wishes to open a position of one mini lot for the EUR/USD pair, and the current price is 1.1150. A mini lot consists of ten thousand currency units, which means our hypothetical trader would need to invest $11,150 (10,000 x 1.1150) without using leverage. However, this person has a limited budget at their disposal and decides to take advantage of 1:500 leverage.
This leverage ratio would enable the trader to take up a five-figure position in EUR/USD with an initial capital of around $22.30 (1/500 of $11,150). The trader would essentially borrow 500 currency units from their broker for every unit of their capital (500 x 22.30). If they close the position at a higher price of 1.1200, for example, their original investment of $22.30 would bring in $50 in net profits (0.0050 x 10,000 = $50) with 1:500 leverage.
Margin Trading Explained
Traders must meet specific minimum margin requirements before a broker allows them to open leveraged positions. Forex brokers use margin as collateral when offering leverage to their customers. The margin serves as a security deposit and ensures brokers can cover the potential losses resulting from their customers’ actions. Another way to put it is to say the margin represents the minimum amount you must have in your balance to maintain a leveraged position.
Minimum margin requirements are shown as percentages and vary based on the leverage ratios one trades with. Traders need less margin when using higher leverage, and vice versa. You must cover 1/500 of your position’s overall size when using 1:500 leverage, corresponding to a minimum margin of 0.20%.
To proceed with the example from earlier, a trader should have at least $22.30 (0.20%) available in their balance to control a EUR/USD position of $11,150 with 1:500 leverage. This collateral amount remains locked in traders’ balance until they close their positions or the broker liquidates them due to rapidly mounting losses. The remaining balance is a “free” margin and is available for opening new leveraged positions.
Leverage Ratios and Corresponding Margin Requirements
As previously explained, minimum margin requirements fluctuate depending on leverage ratios and position size. Higher leverage rates require less margin and vice versa. The base currency of your live account also bears consideration when you trade forex pairs on margin. Here are a couple of examples demonstrating how to calculate the minimum balance needed to trade a mini lot (10,000 units) of EUR/USD with 1:500 leverage and 0.20% margin.
Example #1
When the quote currency in the forex pair coincides with your base account currency, you can calculate your minimum collateral by multiplying your position size by the current exchange rate and the margin percentage. Let’s suppose a person wants to purchase one mini lot of EUR/USD at 1.1250 with a 0.20% margin and 1:500 leverage. If so, they must deposit no less than $22.50 (10,000 x 1.1250 x 0.20%) in their live balance.
Example #2
The calculations are slightly different when the base currency of the forex pair coincides with the base currency of your live trading account. The formula is even simpler in this case as traders must only multiply their position size by the margin percentage corresponding to the leverage ratio they intend to use. If someone purchases a mini lot of USD/CAD at 1.3650 with 1:500 leverage and 0.20% margin, they should have at least $20 (10,000 x 0.20%) in their account to open this position.
Using Leverage Multiplier to Calculate Minimum Margin Percentage
Most brokers have built-in calculators on their websites, greatly simplifying this process for retail clients averse to doing calculations. As for minimum margin percentages, you can easily work them out by dividing 100 by the leverage multiplier you plan on using. Leverage of 1:500 is associated with a minimum margin percentage of 0.20% (100 / 500), 1:30 leverage requires 3.33% (100 / 30) margin, and so on.
Common Leverage Ratios and Their Min. Margin Percentages
| Leverage Ratio | Require Margin in % |
|---|---|
| 1:2 | 50% |
| 1:5 | 20% |
| 1:10 | 10% |
| 1:30 | 3.33% |
| 1:50 | 2% |
| 1:100 | 1% |
| 1:200 | 0.50% |
| 1:400 | 0.25% |
| 1:500 | 0.20% |
| 1:1000 | 0.10% |
Risks Associated with Using Higher Leverage
One of the biggest issues resulting from using leverage is that it has the potential to magnify both your profits and losses. Using unreasonably high leverage could lead to considerable losses even in the event of less dramatic price fluctuations. Also, it is not unheard of for retail traders to lose their entire balance during market gaps or sharp price movements against their CFD positions. In fact, nearly all CFD providers report over half of their retail clients end up losing their balance when trading with leverage.
Psychology is also a factor here as many inexperienced traders are prone to downplaying the risk associated with using leverage. Others let their emotions interfere with their investment decisions when trading with borrowed capital, a practice that has a pronounced negative effect on their long-term performance.
When leveraging your positions at high ratios like 1:500, you should monitor them regularly to prevent margin calls and reduce your risk of sustaining massive losses. Last but not least, you must always ensure your broker offers negative balance protection. Otherwise, you may end up losing more than your initial investment.
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 1:300 Leverage