Originally posted by Forex Crypto Hub
In this article you will find US Forex brokers with high leverage listed below. You will also find out why super high leverage brokers do not exist within the United States. Find out why you may need to open an account offshore to get the leverages of 100:1 and beyond. Updated July 2023.
Make sure too check out our 2023 List of Best US Forex Brokers with High Leverage down below.
The US Forex Brokers with High Leverage Are:
- LMFX – 1:1000 Leverage
- IG – 1:50 Leverage
- Forex.com – 1:50 Leverage
- Oanda – 1:50 Leverage
What is Forex Leverage?
Leverage is loaning out a certain amount of the money needed to invest in something, Ex – a stock, currency pair etc.
In Forex trading, money is borrowed from a broker.
Forex trading with high leverage means a starting deposit in a account can give you control of a much larger amount based on how much leverage is applied.
For example:
If you deposit 2% of the total transaction value as margin (same as saying as the amount deposited in your account) and you wanted to trade one standard lot of USD/EUR, which is equivalent to US$50,000, the margin required would be US$1,000.
Your margin leverage will be 50:1 (50,000/1,000).
For a margin requirement of 0.5%, the margin leverage will be 200:1
Take a look at these ratio and percentage examples.
| Margin as a Ratio | Margin Required (Percentage) |
| 500:1 | 0.2% |
| 200:1 | 0.50% |
| 100:1 | 1.00% |
| 50:1 | 2.00% |
Another example of Leverage in Forex Trading
Leverage is a tool that enables traders to control positions much larger than their initial investment.
It is expressed as a ratio, such as 1:100 or 1:500,
indicating the amount of borrowed funds a trader can access for each dollar in their trading account.
For example, with 1:100 leverage, a trader can control a $100,000 position with only $1,000 in their account.
List of US Forex Brokers with High Leverage in 2023
Broker Name: LMFX
| Broker Type | ECN |
| Regulations | UNREGULATED |
| Min Deposit | $50.00 |
| Account Base Curreny | USD, EUR, GBP, AUD, CAD, Bitcoin, Gold, Bitcoin Cash, Litecoin, Ethereum and XRP |
| Max Leverage | 1:1000 |
| Trading Platforms | Metatrader 4, Web trader, Mobile app(MT4) |
Broker Name: Forex.com
| Broker Type | Market Maker |
| Regulations | NFA, CFTC, RFED, FCM |
| Min Deposit | $50.00 |
| Account Base Currency | USD CAD GBP |
| Max Leverage | 50:1 |
| Trading Platforms | FOREXTrader, Metatrader 4 |
Broker Name: Oanda
| Broker Type | Market Maker |
| Regulations | IIROC, CIPF, NFA, FCA, CFTC, ASIC, MAS |
| Min Deposit | $1.00 |
| Account Base Currency | AUD CAD EUR GBP HKD JYP SGD CHF USD |
| Max Leverage | 50:1 |
| Trading Platforms | Web trading, Metatrader 4, Oanda desktop trading platform |
Can US residents get more than 50:1 Leverage?
The short answer is no. 50:1 leverage is the maximum amount of leverage aloud within the united states.
This is because the US regulation forbids forex brokers in the united states to offer leverage above 50:1 or 2%
Forex trading in the USA is regulated by the NFA (National Futures Association) and the CFTC. Some of the regulations that have to be met are:
- Limits leverage to 50:1 on the major currencies.
- Limits leverage of 20:1 on minor currencies.
- First-in-First-out (FIFO) rule.
- US residents are only allowed to trade with US Forex brokers under NFA regulations.
- Money owed by the forex broker to the client should be held at one or more qualifying institutions in the US.
- Retail forex trading brokers in the United States must maintain minimum capital of at least $20 million and 5% of the amount by which liabilities to retail forex customers exceed $10 million. Making it tough for any new comer to the business as it take a lot of capital just to get started.
- Provide weekly financial statements to the NFA to ensure that all financials are in order.
- No hedging allowed.
What does this all mean?
It means most forex brokers do not offer clients from the USA high leverage above 50:1, because of the strict requirements set out by the regulators, NFA and CFTC.
Finding US Forex Brokers with High Leverage (50:1+)
The answer is you cant, not within the United States. The maximum amount of leverage you can get is 50:1 with brokers like IG, Oanda and FOREX.Com
The only other option now is to find a Forex broker that operates outside the United states and that allow US client to open up trading accounts.
Let me save you a bunch of time from searching the web for an offshore Forex broker that accepts US citizens.
Currently one of the ONLY offshore Forex brokers that accept US clients is FXChoice. This was true in the past, but as of June 2021 FXChoice NO longer accepts US clients.
Another offshore broker that accepts US clients in 2023 is LMFX. LMFX is not regulated by any kind of regulatory body, this may be a good or bad thing, depending how you look at it, but you are always taking a bit of a risk trading with a non regulated Forex broker. Never invest more you are willing to lose. LMFX offer Forex trading and leverage as high as 2000:1.
When you start searching online for US Forex brokers with high leverage you come to the realization that there are NOT that many forex brokers that offer accounts to US citizens, let alone offer high leverage accounts of more than 50:1.
What we noticed is that allot of forex brokers offshore that offer accounts to US citizens are HIGH RISK in our opinion.
Another broker worth mentioning is Oanda. Oanda Is regulated in the USA and offer forex accounts to US citizens. They are similar to FOREX.com as they offer a maximum leverage of 50:1
The Pros of High Leverage
Increased Trading Power: High leverage allows traders to access more significant trading positions with a smaller initial investment. This amplifies potential profits especially in volatile markets.
Diversification: With high leverage traders can diversify their trading strategies and trade multiple currency pairs or other financial instruments, which may not have been possible with lower leverage.
Reduced Capital Requirements: High leverage enables traders to enter larger positions without tying up substantial amounts of capital. It creates trading opportunities for those with limited funds.
Flexible Risk Management: Leveraged trading allows traders to allocate funds more efficiently and use risk management strategies, such as stop-loss orders, to limit potential losses.
The Cons of High Leverage
Amplified Losses: The main downside of high leverage is the potential for amplified losses. A small negative price movement can lead to significant losses wiping out a trader’s entire account.
Margin Calls: High leverage increases the likelihood of margin calls, where brokers demand additional funds to cover potential losses. Failure to meet margin requirements may lead to forced liquidation of positions.
Emotional Stress: Trading with high leverage can induce emotional stress as traders may feel pressured to make quick decisions and take excessive risks to recover losses.
Lack of Experience: High leverage is not suitable for inexperienced traders as it requires a deep understanding of risk management and disciplined trading strategies.
USD
Conclusion
In our research, Two of the best brokers for US Forex brokers with high leverage is FOREX.Com for with the United States and FXChoice for Offshore Forex trading. Effective in early 2021, FXchoice no longer accepts US traders. The next best offshore Forex broker would be LMFX, though they are not regulated.
It is always our advice to trade with lower leverage, lower leverage equals less risk and is a responsible way of trading Forex.
About This Article
Author: Mark Prosz
Sources of information and credits for this post include:
The post US Forex Brokers with High Leverage appeared first on Forex Crypto Hub.
