Forex Brokers for Hedging

Written by Naylyan Nazifova

Naylyan Nazifova

Naylyan Nazifova is a recognised expert in the online trading field. She has many publications and analysis covering forex trading, stock investing and personal finance. 

, | Expert Editor Eugene Lee, CFA

Eugene Lee, CFA

Eugene Lee, CFA, is an investment strategist and quantitative researcher with over two decades of experience navigating global markets. Having worked on trading and portfolio management teams covering multi-billion dollar portfolios across equities, fixed income, and derivatives.

, | Updated: April 24, 2026

Forex hedging is a risk management tool that allows traders to open positions designed to protect against unfavorable market moves. The goal is to reduce portfolio risk by buying or selling financial instruments that partially or completely offset existing exposure.

Many forex brokers allow hedging, but the specifics for hedging will depend on each company’s internal policy and the regulations from financial regulatory authorities in its target markets.

This article examines a range of Forex brokers that allow hedging.

1Plus500 US

Rating: 4.2 ⭐

This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.

Top Rated

2eToro

Rating: 4.2 ⭐

50% of retail investor accounts lose money

3Fusion Markets

Rating: 4.8 ⭐

74-89% of retail's CFD accounts lose money

4FP Markets

Rating: 4.9 ⭐

73.33% of retail investor accounts lose money

5BlackBull Markets

Rating: 4.8 ⭐

Trading leveraged products is risky

6Eightcap

Rating: 4 ⭐

59.57% of retail investor accounts lose money when trading CFDs with this provider.

7Global Prime

Rating: 4.7 ⭐

74-89% of retail CFD accounts lose money

8Capital.com

Rating: 4.6 ⭐

69% of retail investor accounts lose money when trading CFDs with this provider.

9IG

Rating: 3.9 ⭐

67% of retail client accounts lose money when trading CFDs with this investment provider.

10AvaTrade

Rating: 4.7 ⭐

57% of retail investor accounts lose money

Top 12 Forex Brokers for Hedging

1. TRADE NOW READ REVIEWTrustpilot Rating

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   1. Global Prime

   Traders looking to reduce their risk exposure when trading forex CFDs can look at what Global Prime has to offer. The broker’s internal policy does not impose restrictions on hedging. Other strategies, such as scalping, swing trading, and the usage of Expert Advisors, are also permitted.

   Hedging strategies can be efficient in minimizing the risks associated with holding positions overnight and can reduce the impact of swap fees on Global Prime users’ account balances. With around 60 currency pairs, traders will have opportunities to hedge against potential losses and open positions in correlated currency pairs. Beyond forex, GP customers can utilize other markets such as bond CFDs, indices, cryptocurrencies, US shares, and commodities.

   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.
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   2. FP Markets

   Established in 2005, FP Markets is an Australian-based forex and CFD broker regulated by ASIC, CySEC, and FSCA. The broker provides access to over 60 forex pairs alongside commodities, indices, cryptocurrencies, and shares. FP Markets has built a strong reputation with a 4.9 Trustpilot rating and 40+ industry awards.
   The broker permits hedging on forex positions and offers multiple account types with competitive spreads starting from 0.0 pips on raw spread accounts. FP Markets supports popular trading platforms including MT4, MT5, and cTrader, which provide the advanced charting tools and order types hedgers require. The minimum deposit is A$200 (approximately USD 130), and the broker holds licenses from three major jurisdictions, providing clients with regulatory protections across multiple regions.

   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.
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   3. BlackBull Markets

   Started in 2014, BlackBull Markets has customers from over 180 jurisdictions with licenses obtained from the regulatory authorities of New Zealand and Seychelles. The ECN broker provides narrow spreads from 0.8 pips for commission-free accounts for thousands of tradable symbols, including over 60 forex pairs, 20 cryptocurrencies, 15+ indices, and more than a dozen commodities. Customers can also speculate on price fluctuations of over 1,800 shares from 25+ global markets. BlackBull Markets has no restrictions on hedging and even offers risk management guides. The broker supports popular platforms like MT5, MT4, and cTrader that are highly regarded among hedgers due to their advanced order types and charting capabilities. Hedgers of the Muslim faith can also use swap-free accounts at BlackBull Markets. The minimum deposit requirement is $0.

   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. TRADE NOW READ REVIEWTrustpilot Rating

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   4. Pepperstone

   Pepperstone features more than 1,000 CFD instruments, including forex, indices, shares, and more. The company has gained the regulatory approval of multiple financial authorities, ASIC, CySEC, and BaFin, among others. The brand’s spreads are competitive, starting from 0.0 pips on its Razor accounts. Traders are allowed to hedge their Forex positions on the MT4, MT5, and cTrader platforms. They can choose among more than 100 assets to hedge, including 90+ forex pairs.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.9% 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.
5. TRADE NOW READ REVIEWTrustpilot Rating

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   5. AvaTrade

   AvaTrade is a broker with around 20 years of experience in the financial industry. The regulated broker has a diverse portfolio of more than 1,250 financial instruments, including forex, commodities, indices, and more. Additionally, AvaTrade offers 50+ FX pairs for hedging. AvaTrade has forex spreads starting from 0.8 pips for retail clients and 0.6 pips for professional clients. The company provides several trading platforms for hedging, including MetaTrader 4. Traders can open their live trading accounts with minimum deposit requirements starting from $100.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% 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. TRADE NOW READ REVIEWTrustpilot Rating

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   6. IG

   IG is a regulated broker that enables its users to toggle into Hedge mode through the “force open” option, regardless of whether they prefer the brand’s web trading platform or mobile app. It allows traders to keep a long and short position simultaneously for their selected trading pair. As the broker suggests, a way to learn more about hedging is to open an IG demo account. At IG, forex traders can choose from over 90 currency CFDs tradable with spreads from 0.6 pips.

   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.
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   7. Saxo Bank

   Saxo Bank is an option for traders looking to hedge their forex trades. FX trading can be done by selecting “force open” once they have enabled the real-time first-in-first-out (FIFO) or by allowing end-of-day FIFO as the netting method. The user-friendly SaxoTraderGO platform supports these settings, making it straightforward to switch hedging on and off. The company also provides a comprehensive guide on forex hedging for novice traders.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.
8. TRADE NOW READ REVIEWTrustpilot Rating

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   8. CMC Markets

   Founded in 1989, CMC Markets is a global broker that supports a varied portfolio of more than 12,000 tradable markets, including forex, shares, and indices, with competitive spreads starting from 0.0 pips for FX Active accounts. Customers of the broker can choose between the proprietary Next Generation platform or options like MT4, MT5, and TradingView. To hedge currencies, traders can either open a live account or practice forex hedging techniques through a demo account. They can choose between 300+ forex CFDs, including major, minor, and exotic pairs.

   Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
9. TRADE NOW READ REVIEWTrustpilot Rating

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   9. City Index

   City Index is a brand accommodating more than 1 million account holders in over 13,500 financial markets and has an average execution speed of 0.05 seconds. The brokerage is authorized and regulated by several financial bodies, including the FCA, CySEC, and the FSA. City Index offers a proprietary trading platform equipped with advanced research tools and an abundance of educational resources, including those associated with hedging. Average trading costs start from 0.7 pips for the EUR/USD pair. Besides forex, traders can hedge their positions on commodities and stocks.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.
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    10. IC Markets

    Another forex broker that traders can look to hedge their open Forex positions is IC Markets. The company offers a broad range of 2,250+ financial instruments, including 60+ forex CFD products, and the MT4, MT5, TradingView, and cTrader trading platforms. Traders willing to hedge on IC Markets will find ECN execution and spreads starting from 0.0 pips with Raw accounts. New traders can open free Demo accounts, and the minimum deposit requirements for live account holders start from $200.

    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.
11. TRADE NOW READ REVIEWTrustpilot Rating

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    11. eToro

    In addition to allowing currency hedging, the brokerage offers its eToro Academy to help new traders learn more about investing and trading. The brand’s user-friendly platform gives traders access to more than 60 different currency pairs. Based on the country a user resides in, eToro’s minimum deposit requirements vary. In most jurisdictions, the initial minimums are between $50 and $200.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 50% 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.
12. TRADE NOW READ REVIEWTrustpilot Rating

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    12. ActivTrades

    ActivTrades is a multi-regulated broker offering CFDs for over 1,500 forex pairs, commodities, stocks, indices, cryptocurrencies, bonds, and exchange-traded funds. The broker provides lower-than-average target spreads from 0.5 pips and charges no commissions regardless of account type and tradable symbol. It permits hedging across all available platforms, including MT4 and MT5. The MetaTrader platforms are particularly suitable for hedging as users can hold opposing positions. ActivTrades offers flexible leverage and margin conditions, with maximum ratios of 1:1000 for FSC clients and 1:200 for SCB customers. Retail traders from Europe and the UK can leverage their hedged positions at a maximum ratio of 1:30.

    CFDs 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 work and whether you can afford to take the high risk of losing your money.

Comprehensive Comparison of the Top 10 Forex Brokers for Hedging

Best Forex Brokers for Hedging Ranked by Trustpilot Score

Hedging Trading Strategy Explained in Brief

Forex hedging is a strategy used by traders to help manage or reduce exposure to unfavorable market moves by opening additional positions. Normally, this is a short-term protection mechanism that traders use when they see potential risks from news and events that may trigger volatility in currency markets. The flipside is that the reduced exposure to currency risk leads to lower potential profits as well.

While hedging may not eliminate the risk of adverse price movement entirely, a properly applied strategy can help mitigate losses or limit them to a known amount. The first step is to select currency pair. Major currency pairs give more options for hedging strategies compared to minor ones, mostly because of availability.

Traders should also consider the capital they are willing to invest, as opening additional positions incurs additional trading costs.

Finally, traders should consider the amount of time they can spend monitoring the markets. Opening a demo account first can help test a hedging strategy ahead of time.

Types of Hedging

Many types of risk management strategies exist for forex traders to help protect against currency losses, with hedging among the most favored. Some of the most common hedging strategies include simple (direct) forex hedging and multiple-currency hedging.

With a simple forex hedging strategy, also known as a direct hedge, traders open the opposite position to a current trade. In other words, a long position on a currency pair can be offset by opening a short position on the same currency pair, and vice versa.

An example of a simple forex hedging strategy is taking a long and short position on the EUR/USD currency pair simultaneously. While the profit from direct hedges can be reduced to zero, traders can maintain their original position on the market in anticipation of a trend reversal without selling outright.

The multiple-currency hedging strategy is also popular. It requires picking two positively correlated currency pairs and taking opposite positions on both pairs. For instance, a trader can buy the GBP/USD currency pair to hedge against the EUR/USD. If it is properly applied, this strategy can reduce the risk and might even yield a small profit. However, if it fails, traders can face losses from multiple positions, so careful application is warranted, with thorough analysis of correlated pairs.

Who Should Use Hedging?

Many market participants utilize forex hedging. Retail traders who understand financial markets and the related economic news can apply hedging as a risk management strategy. Professional traders and institutional investors also tend to use hedging to protect large amounts of money and their portfolios, especially if their portfolio strategies are more conservative. Ultimately, hedging is used to help limit potential losses rather than generate profits.

Is Hedging Legal Everywhere?

Hedging is legal in most financial markets around the globe. Whether your broker will allow forex hedging depends on the country and the regulations of its financial authorities.

The US, for example, has restrictions on hedging while forex trading. The Commodity Futures Trading Commission (CFTC) has implemented several restrictions on traders so that brokers adhere to the regulations. For example, traders cannot hedge a position on the same currency pair. However, hedging is considered a legal activity in many countries across Europe, Asia, and Australia.

Factors to Consider When Choosing Forex Brokers for Hedging

Several important factors should be considered when selecting a forex broker for hedging. First, check the broker’s regulatory status, license, and reputation. Authorization from a reputable financial authority usually means a high level of security and investor protection.

To execute your hedging strategies effectively, select a broker offering a user-friendly trading platform. Brokers with fast execution speeds and a wide range of liquidity providers usually come with prompt execution of trades and competitive prices. Average spreads, minimum deposit requirements, and the range of supported account types should also be considered.

Additional important factors when selecting a forex broker for hedging include the assortment of financial instruments and the number of supported currency pairs for hedging. advanced research tools and educational resources dedicated to forex hedging are important considerations.

Trading Software Suitable for Hedging

Reputable forex brokers typically offer several trading platforms that are suitable for hedging. Forex hedging is permitted across various white-label trading platforms, including MT4, MT5, TradingView, and cTrader, as well as many brokers’ proprietary trading platforms.

Traders should verify that the broker facilitates hedging on its platform, especially for live trading accounts. Platform choice should align with the trader’s style and preferences.

Why Hedge Your Forex Trades?

There are several reasons why traders prefer to hedge their positions while forex trading.

Hedging is a risk mitigation strategy that reduces exposure to unfavorable price movements, helping traders limit potential losses during unfavorable market conditions.

While direct hedging is restricted in the USA under CFTC regulations, hedging your forex trades is legal in most markets.

And finally, currency pairs, both major and minor, are among the most suitable tradable instruments for hedging, with high liquidity and low spreads.

Does Hedging Guarantee Success in Forex Trading?

Similar to insurance, hedging is a risk management tool that serves to mitigate losses. It cannot guarantee success or prevent unfavorable market movements entirely. Instead, it can protect traders if their worst-case scenario comes into play. Essentially, rather than generating profits, traders hedge to minimize losses.

The capital that traders have at their disposal to hedge is another important consideration. It will vary from trader to trader, based on their risk tolerance.

Forex hedging can be a useful strategy for traders to secure their long positions during periods of short-term volatility. However, it is not a straightforward way to make profits and rule out risk in the long term.

Written by N. Nazifova | Expert Editor Eugene Lee, CFA