- 2 account types offered: Raw (commissions + spread) and Standard (spread only)
- Minimum deposit of €100 to start trading
- Compatible platforms are MT4, MT5 and TradingView
- Very competitive commissions and spreads
- Demo account with virtual money available
- Leverage up to 1:1000 with the Mauritius account
- Microlots available for trading
- Competitive commissions and spreads
5.0- Australian ECN broker authorized and regulated by ASIC in Australia
- Leverage up to 500x
- 5 tradable asset classes
- Demo account with virtual money
Inform FPG that you are a qualebroker.com user and you will be entitled to a discounted commission of 30% on the ECN account (€4 per lot instead of €5.5).
If you are a trader with many years of experience, you will already know that in 2018 ESMA (the European Securities and Markets Authority) imposed limits on the use of high leverage for opening CFD positions. In particular, from that moment on, retail investors were allowed to trade with a maximum leverage of 30:1 (Forex).
But for some asset classes, the permitted leverage is even lower: for example, for stocks the maximum leverage is 5:1 and for cryptocurrencies the maximum leverage allowed is 2:1.
In this guide, we will look at how the European regulatory framework has changed in this area and which are currently the best high leverage brokers offering the most favorable conditions.
High leverage brokers: what has changed
European and UK online brokers were required to implement these restrictive measures, aimed at protecting less experienced users who trade complex and risky products such as CFDs.
On the other hand, it should be recognised that experienced traders are aware of both the risks and the benefits associated with high leverage trading. Some of these traders have therefore sought out non-European platforms that do not impose limits on the use of leverage.
In financial jargon, online brokers that continue to offer high leverage have been referred to as no ESMA brokers.
In this guide, we will explain what high leverage trading involves and which brokers currently offer the best conditions with leverage of up to 1:500.
High leverage brokers: what leverage is and how to use it in trading
Before explaining what leverage is and how it works, let us take a step back to briefly define what CFDs are, the financial instruments to which leverage is applied in trading.
CFDs (Contracts for Difference) are complex financial instruments that allow traders to speculate on the rise or fall of the price of an underlying asset. Instead of physically trading the underlying asset, the two parties entering into the contract (the trader on one side and the broker on the other) agree to exchange money based on the change in value of the underlying asset.
With the leverage effect, the broker allows the trader to open a CFD position by using only a fraction of the contract’s notional value. For example, with 500x leverage it would be possible to open a CFD position with a notional value of €50,000 while having only €100 in the account (i.e. €50,000 / 500). What does trading with 500:1 leverage mean? It means opening a position by committing just one five-hundredth (or 2%) of the contract’s notional value.
If instead we used a broker offering 400x leverage, to open a CFD with a notional value of €50,000 we would need €125 as margin in the account.
So, when is leverage used in trading? Leverage in trading is mainly used to meet the needs of undercapitalised traders who otherwise would not be able to operate. By using leverage, investors can gain greater exposure compared to their invested capital (up to 500x), thus having the possibility to amplify both the profits and the losses resulting from trading activities.
Brokers with higher leverage: how and when it can be used
As we have already mentioned in the opening section of this guide, there are two alternatives for using brokers with higher leverage:
- Declare to a European broker that you are a professional client
- Use a non-European broker outside the scope of ESMA rules
While being recognised as a professional client requires meeting specific criteria (for example, having worked in the financial sector or holding an investment portfolio of at least €500,000), choosing a no-ESMA broker simply means looking for one that is authorised and supervised by reputable regulatory authorities. Outside Europe, apart from the United States, the most reputable regulators are those in Australia and South Africa.
Let us now take a look at which are the best high leverage brokers according to our analysis.
The 3 best high leverage brokers
Let us now take a look at which are the best high leverage brokers according to our analysis. We have selected the trading platforms that achieved the highest scores in terms of security, costs, and market access.
Eightcap: CFD broker founded in Australia
5.0Country: Australia/Bahamas
Type of broker: ECN Broker
Minimum deposit: €100
Tradable currency pairs: 40
Demo account:
Commissions:
Platforms:
Ideal for: trading gold CFDs with some of the lowest spreads available
Pros:
- Broker with 1:500 leverage
- Spreads starting from $0.12
- Fast deposits and withdrawals with no fees
Cons:
- Lack of educational materials on the website
As the best non-European broker offering high leverage, we have chosen Eightcap. Eightcap is an online broker founded in Australia in 2009 that operates under the supervision of several regulatory authorities, including:
- Australian Securities & Investment Commission (ASIC)
- Financial Conduct Authority (FCA)
- Securities Commission of The Bahamas (SCB)
- Cyprus Securities and Exchange Commission (CySEC)
Eightcap allows trading on 5 asset classes: forex, commodities, indices, shares, and cryptocurrencies. In total, around 800 financial instruments are available.
Eightcap offers 2 account types, which differ exclusively in terms of commissions, namely:
- With the Raw Account, a fixed commission of $3.5 per trade is charged, with spreads starting from 0.0 pips
- With the Standard Account, there are no commissions, but spreads start from 1.0 pip
The minimum deposit required by Eightcap is only €100, while the supported trading platforms are MT4, MT5, and TradingView.
Eightcap is one of the few brokers offering 1:500 leverage, making it one of the brokers with the highest leverage available.
Trade now or try Eightcap’s demo account
ActivTrades: European broker with a branch in the Bahamas
5.0Country: Bahamas and Mauritius
Type of broker: ECN/STP Broker
Minimum deposit: €500
Tradable currency pairs: 50
Demo account:
Commissions:
Platforms:
Ideal for: trading Forex and CFDs with leverage up to 1:1000
Pros:
- Leverage up to 1000x even for retail clients
- Platforms suitable for both beginners and experienced traders
- Trading account insured up to £1,000,000
Cons:
- Inactivity fees apply from the second year if the account is not used
ActivTrades is a UK-based broker that allows online trading on seven financial asset classes.
This type of broker is ideal for traders who want to operate with high leverage and mainly intraday trades on speculative instruments such as Forex or cryptocurrencies.
ActivTrades is authorised and supervised by the UK’s FCA. Trading accounts can be insured for up to £1,000,000, and client funds are segregated and held in separate bank accounts. Negative balance protection prevents clients from incurring potential losses greater than the value of their account.
The range of products and markets is more than satisfactory. The maximum leverage for those opening a European account is 1:30. However, for those interested in higher leverage, ActivTrades has a branch in the Bahamas and one in Mauritius.
By opening an account through the Mauritius branch, you can benefit from leverage of up to 1:1000. This is one of the highest leverage levels you will find.
Spreads are lower than the industry average. Due to the swap costs on open positions, this broker is not recommended for overnight trading. Account maintenance fees only apply from the second year of inactivity.
The proprietary web platform is intuitive and easy to use. For more experienced traders, the account can be connected to MT4 or MT5. Equally user-friendly is the app for smartphones and tablets.
The Customer Service is very comprehensive (especially via chat) and available 24 hours a day, Monday to Friday. Also complete is the educational offering, including video tutorials, live trading sessions with professional traders, webinars, and much more.
Trade now or try ActivTrades’ demo account
75% of retail investors lose money when trading CFDs with this provider.
You should consider whether you can afford to take the high risk of losing your money.
Fortune Prime Global: Australian broker authorised by ASIC
5.0Country: Australia
Type of broker: ECN Broker
Minimum deposit: $50
Demo account:
Commissions:
Platforms:
Ideal for: trading with leverage up to 500x through a regulated broker.
Pros:
- Microlots and leverage up to 500x
- Authorised and transparent Australian broker
- Dedicated Account Manager for each client
Cons:
- Broker’s website available only in English
Fortune Prime Global is a non-European ECN broker that offers online trading services through CFDs.
FPG is authorised and regulated by ASIC in Australia under licence number 400364.
It offers clients 3 types of accounts: Standard, Prime, and ECN.
The Standard and Prime accounts are commission-free, with spreads starting from 0.1 pips (0.9 pips for Forex).
The ECN account features commissions of $3.50 per trade and spreads starting from 0.0 pips. This account is suitable for traders who trade large volumes.
The minimum deposit is $50 and, before trading with real money, the broker provides a demo account with virtual funds to test the platform and services.
Trade now or try FPG’s demo account
Inform FPG that you are a qualebroker.com user and you will be entitled to a discounted commission of 30% on the ECN account (€4 per lot instead of €5.5).
