Updated on: November 10th, 2024
Leverage is a term frequently mentioned in the world of forex trading. It refers to the practice of using borrowed funds to make a bigger investment when trading currencies. Many investors, particularly those who want to dramatically increase their earning potential, are in search of high leverage forex brokers in Europe, as these can help them trade bigger positions that can lead to bigger profits. However, leverage is widely considered to be a two-edged sword. Whilst it does increase one’s earning potential, it also raises the risk at the same time.
Best European High Leverage Forex Brokers
Min Deposit: $50
Min Deposit: $100
Min Deposit: $50
Min Deposit: $100
Min Deposit: $0
Min Deposit: $10
Min Deposit: $100
Min Deposit: $100
Comparison of High Leverage Forex Brokers in Europe at a Glance
|
Forex Broker |
Regulation |
Maximum Leverage |
Minimum Deposit |
Currency Pairs |
|
|
Retail |
Pro |
||||
|
Fusion Markets |
ASIC, FSA, VFSC |
1:30 |
1:500 |
$0 |
90+ |
|
FP Markets |
ASIC, CySEC, FSCA, FSA |
1:30 |
1:500 |
$50 |
71 |
|
Vantage Markets |
ASIC, FCA, FSCA, VFSC |
1:30 |
1:1000 |
$50 |
50 |
|
easyMarkets |
CySEC, ASIC, BVI FSC, FSA |
1:30 |
1:400 |
$25 |
18 |
|
AvaTrade |
CBI, ASIC, FSCA, FSA, FFAJ, BVI FSC |
1:30 |
1:400 |
$100 |
60+ |
|
IFC Markets |
CySEC, BVI FSC, LFSA |
1:20 |
1:400 |
$1 |
48 |
List of Top 7 High Leverage Forex Brokers in Europe
- FP Markets – High leverage broker with a wide range of tradable assets and diverse trading platforms.
- Fusion Markets – Low-cost forex broker with competitive spreads and a maximum leverage of 1:500.
- Vantage Markets – Outstanding copy trading platform where qualified traders can enjoy leverage of as much as 1:1000.
- EasyMarkets – Offers guaranteed stop losses and negative balance protection on an exemplary proprietary platform.
- AvaTrade – Highly regulated with multiple top-tier licenses. Commission-free trading on MT4 and MT5 accounts.
Best European High Leverage Forex Brokers Reviewed
If you are interested in high leverage forex trading, it makes sense to take the maximum leverage of a forex broker into top consideration. Of course, there are a few other very important factors to examine before choosing a broker to work with. You need to check whether they have competitive fees, a trading platform equipped with the necessary tools and features you need to properly implement your trading strategy, and so on. Here, we take a closer look at the best high leverage forex brokers in Europe today to help you make a suitable choice.
1. FP Markets – The Best High Leverage Forex Broker in Europe
FP Markets is by far the best high leverage forex broker in the EU. It is largely known as a low-cost forex broker, which is why it appeals to many traders. It has been operating for nearly two decades now, having been established in 2005 in Australia. It boasts of at least 4 licenses from global regulatory bodies, including the Tier-1 regulators, ASIC and CySEC. Spreads on major currency pairs start at 0 pips, and the commissions on their Raw ECN account are quite competitive as well.
This broker has consistently been cited as an excellent zero spread forex broker. They also have over 60 currency pairs for investors to choose from. In fact, they have one of the widest ranges of tradable products available, including all sorts of stocks, indices, commodities, bonds, ETFs and cryptocurrencies. These are available for trading through the MetaTrader Suite and the IRESS trading platform. The FP Markets also provides a rich library of educational resources for both beginners and seasoned traders.
2. Fusion Markets – Low-cost forex broker with competitive spreads and a maximum leverage of 1:500
Established in 2017, Fusion Markets is still a fairly new online broker but there is no question that it is also one of the more highly preferred by forex traders in Europe. Among its most attractive features are the very competitive trading fees, including low spreads and affordable commissions. They offer leverage of up to 1:500 which can significantly boost your trade profits.
Fusion Markets is regulated by three very trustworthy bodies – ASIC, FSA, and VFSC – which ensures the safety and security of traders. They guarantee negative balance protection and offer a range of trading solutions that cater to different types of traders. There are more than 90 currency pairs available for trading, along with a bunch of other tradable instruments. There is no minimum deposit required.
3. Vantage Markets – Outstanding copy trading platform where qualified traders can enjoy leverage of as much as 1:1000
Vantage Markets was established in 2009 and is considered to be one of the most trustworthy high leverage forex brokers in Europe these days. They offer both the MetaTrader 4 and MetaTrader 5 platforms that are familiar to most forex traders, as well as a brilliantly built proprietary app. They also have a solid social trading offering through ZuluTrade, DupliTrade, and MyFXBook. Social traders can get their hands on a wide variety of tools and educational materials at Vantage Markets to help maximize profits on their trades.
Spreads are remarkably low, beginning at 0.0 pips for many currency pairs. Likewise, commissions are quite competitive at $3 per trade. Furthermore, there are no fees deducted for withdrawals, deposits or even inactivity. As for tradable assets, Vantage Markets has more than 50 currency pairs in its portfolio, along with over 300 other tradable instruments including indices, metals, commodities, share CFDs, and cryptocurrencies. This broker does not lag behind when it comes to client security either. They provide investor protection, negative balance protection, and reliable customer support as well.
4. easyMarkets Outstanding copy trading platform where qualified traders can enjoy leverage of as much as 1:1000
When easyMarkets was established in 2001, they were known as easy-forex. Over the years, they began to expand their portfolio of tradable assets, prompting the official change of name to easyMarkets in 2016. Today, they present an extensive list of instruments such as global indices, metals, cryptocurrencies, a variety of commodities, and a core selection of 18 popular currency pairs, including the majors.
In addition to the high leverage of up to 1:400, what traders find most appealing about this broker are their competitive fees. Using the very popular MetaTrader 4 platform, easyMarkets offers fixed spreads that start at 0.05 pips, as well as low commissions. Investors can start trading with a deposit of as low as $25. For those prepared to make a bigger deposit, the VIP and Premium accounts are worth a try, whereas the spreads are much lower as well.
5. AvaTrade – Offers guaranteed stop losses and negative balance protection on an exemplary proprietary platform
AvaTrade is well-known in the forex trading industry as one of the most reliable high leverage forex brokers in the EU. They are very well-regulated, with licenses under nine regulatory bodies from all over the world, including Australia’s ASIC and MiFID in the European Union. Investors are spoilt for choice in terms of tradable instruments at AvaTrade, which offers more than 1260 products in all. This includes the more than 60 currency pairs that make up their forex selection, which come with competitive spreads.
Investors at AvaTrade who are used to the MetaTrader platforms will be happy to know that MT4 and MT5 are supported. However, this broker has its own AvaTrade WebTrader, as well as AvaTradeGO for mobile trading, both of which are chockful of useful features and tools to aid both new and experienced traders. In addition, AvaTrade also excels in the field of social copy trading, having even built its own copy trading platform in the form of AvaSocial. Copy traders who are more familiar with ZuluTrade and DupliTrade have the option of using these platforms as well.
6. IFC Markets – Highly regulated with multiple top-tier licenses. Commission-free trading on MT4 and MT5 accounts
Finally, topping off our list of high leverage forex brokers in Europe is IFC Markets, which has been around since 2006. Like most of our recommended brokers, IFC Markets offers tight spreads, low commissions, and a wide range of trading instruments. The list includes 48 currency pairs, more than 600 CFDs on metals, stocks, stock indices, oil, and other commodities. Traders only need to deposit $1 to start trading, but with the 1:400 leverage offered by IFC Markets, even a single dollar initial deposit can go a very long way.
Although not as sizable as some of the bigger high leverage forex brokers in Europe, IFC Markets is nevertheless completely safe and secure, with a license from CySEC, a Tier-1 regulatory authority. It guarantees a safe environment for trading and prides itself on supportive and reliable customer support. In addition, IFC also comes with a myriad of research and educational materials for beginners, as well as advanced charting and analytical tools for the more active traders.
How Leverage Works in Forex Trading in Europe
In forex trading, investors put in a certain amount of money to use for trading. The bigger the investment, the bigger the profit potential. By using one’s funds alone, it is completely possible to make a profit from trades, albeit at a very slow rate. To give investors the chance to trade with significantly bigger funds, brokers offer them leverage. That is, the broker lends money to the trader, essentially magnifying their initial margin and allowing them to control a much larger amount of money.
There are different levels of leverage offered by forex brokers, usually ranging from 1:30 to as high as 1:1000. Let’s say your broker offers a leverage of 1:500 and there is no minimum deposit required. So if you transfer even $1, the leverage will enable you to trade with as much as $500. This might not make much of a difference especially since currency prices typically have very minute movements. By applying this kind of leverage on, let’s say, $1000 in your account, you can have a whopping $500,000 value to use for trading, which can result in incredible profits or overwhelming losses.
Advantages of Using High Leverage in Forex Trading
Higher Profit Potential
The biggest advantage of high leverage is the magnified trading profits that one can potentially make, without having to make a sizeable investment. With even a 1:10 leverage, you get to multiply your possible income by 10 times of what you would get just by investing your own money. This definitely makes a huge difference for beginning traders.
Better Capital Efficiency
Using only one’s personal funds, it can take several months before one can start raking in consistent income from forex trading. With the use of leverage, this period can be shortened to just a few weeks, thus enabling traders to make better use of their capital. The key, however, is to use the right leverage and employ smart trading skills.
Lower Capital Requirement
Without leverage, traders would need to invest a huge amount of money just to be able to open positions on the currencies they prefer. Usually, the minimum amount starts in the thousands of dollars, which most people simply cannot afford to risk. With high leverage, it becomes very easy to open not only one but multiple positions in the market.
More Security
Essentially, leverage is nothing more than money borrowed by traders from brokers. Whilst it’s true that you can borrow the same amount of funds elsewhere, like from a bank, the leverage offered by brokers comes with various security features, like a guarantee of zero balance during liquidation, minimizing potential losses.
Disadvantages of Using High Leverage in Forex Trading
Bigger Risk of Substantial Losses
As mentioned earlier, leverage is a two-edged sword. The higher the leverage, the more profits you stand to gain, but the more risk you assume as well. Even the slightest dip in the movement of currency prices might mean tremendous losses.
Higher Probability of Margin Calls
Because there is a high risk of loss, high leverage also comes with a greater probability of margin calls. This is where the broker would require the trader to deposit more money into their account to cover potential losses. If you are unable to deposit the required amount, it can lead to forced liquidation.
May Cause Emotional Trading
Many traders who have tried using high leverage in forex trading have found themselves deviating from their familiar and reliable trading strategies, due to the excitement of earning bigger profits. Likewise, the fear of suffering extraordinary losses can also impair a trader’s ability to make sound decisions, which they have no problem making otherwise.
What Is the Recommended Leverage to Use?
As you can see from the previous section, there are both advantages and disadvantages to using leverage in forex trading. It must be made clear that the use of leverage is not required, as some newcomers might assume. In fact, many successful traders have never used leverage at all. On the other hand, there are just as many traders who have also met with massive success through leverage trading.
There is no single answer as to whether you should do it or not. It depends on your risk tolerance and level of experience, as well as the current market conditions on the particular currency pair that you want to trade. If you are wondering what would be a good leverage to use, the following tips might prove useful.
If you are new to forex trading and are still learning the ropes, it is advisable to stay within the lower leverage ranges. In highly volatile markets, even a leverage of 1:2 can be quite risky, but since the forex market has relatively low volatility, it would be good to use a leverage of 1:5 up to 1:20 for those who are willing to take a slightly bigger risk.
The size of the investment you are willing to make also plays a role in deciding leverage. Generally, the higher the investment, the less you need to leverage. So if you are putting in say $5,000 or more into your trade positions, you don’t actually need to leverage but if you must, 1:10 should be the biggest that is advisable to use.
Finally, if you are using risk management tools that come with the trading platform, like a stop-loss feature, it would be fine to venture a little bit higher than if you are trading without the help of any trading tools.
Maximum Leverage Allowed in the EU
In the European Union (EU), regulations set limits on the maximum leverage that brokers can offer to retail traders. These regulations aim to protect traders by reducing the potential for large losses resulting from high leverage trading.
Retail traders in the EU are typically limited to maximum leverage ratios of 1:30 for major currency pairs and 1:20 for non-major currency pairs. For commodities and indices, the maximum leverage is often lower, ranging from 1:5 to 1:10.
These leverage limits are designed to ensure that traders have sufficient margin to cover their positions and reduce the risk of margin calls and account liquidation. By restricting leverage, regulators seek to promote responsible trading practices and safeguard the interests of retail investors.
It’s important for traders to understand and adhere to these leverage limits when trading in the EU to avoid potential regulatory penalties and protect their capital. Additionally, traders should carefully consider their risk tolerance and trading strategies when choosing leverage levels, ensuring they trade within their means and manage risk effectively.
Our Conclusion – High Leverage Broker
In conclusion, the best high leverage forex brokers in Europe offer traders the opportunity to amplify their trading positions and potentially increase their returns. With leverage ratios of up to 1:500, these brokers provide traders with increased flexibility and buying power in the forex markets. However, it’s important to remember that trading with high leverage involves significant risks and should be approached with caution.
