Brokers With High Leverage

Brokers with high leverage effectively loan traders capital to increase their purchasing power and potential profits. Clients will put down a small proportion of the total investment, known as margin. In this article, we list the trading brokers and platforms that offer the highest leverage in 2025. We also walk through the benefits and risks of trading with high leverage, as well as regulations laid down by the UK Financial Conduct Authority (FCA).

How Leverage Works

Leveraged trading allows investors to increase their market exposure by borrowing funds from an online broker. Leveraged trading can be particularly attractive to beginners with a limited bankroll and is available on popular retail investing products, such as CFDs (contracts for difference).

Leverage is normally expressed as a ratio, for example, 1:30. This would mean that a £10 deposit could provide the trader with £300 in purchasing power. Leverage can also be expressed as a percentage, for example, 5%. Here, a £10 deposit could give the investor £200 to trade with.

The benefit of trading with leverage is that investors can generate larger profits than their capital would otherwise allow. But equally, losses are also amplified, which is why trading with brokers that offer high leverage can be risky.

Credit: IG

Example

The best way to understand how trading with high leverage works is to look at an example…

Following supply issues in the wake of the 2022 Russia-Ukraine war, Trader A believes the price of oil will rise along with the profits of large energy companies, such as BP. With this in mind, the trader wants to go long on BP Plc using a CFD.

Trader A has £50 to invest and their broker offers high leverage up to 1:200. This means the investor can take out a position worth £10,000 (£50 X 200).

One week later, BP’s share price increased by 5%, giving the trader £500 in profit [(£10,000 x 1.05) – £10,000 = £500]. Without the leverage, the profit would only be £2.50 [(£50 x 1.05) – £50 = £2.50].

However, if there was a 5% reduction in BP’s share price, the loss would also have been multiplied by the leverage ratio. This means the trader would have lost £500 versus the £2.50 loss they would have incurred trading without leverage.

Note, this example does not take into account overnight financing charges and commission fees that may also be charged by brokers that offer high leverage.

High Leverage Vs Low Leverage

It is important to note that most UK-regulated brokers, such as XTB, cannot offer leverage on CFD and forex trading above 1:30. This is in line with EU regulations, though it is lower than limits in other jurisdictions, for example, leverage up to 1:50 is available in Canada while trading brokers regulated by the South African Financial Services Conduct Authority can offer rates up to 1:500.

The reason the Financial Conduct Authority (FCA) has capped leverage at 1:30 is to minimise the losses that retail traders can incur. FCA-regulated trading platforms must also provide negative balance protection, which means losses cannot exceed your account balance.

Both of these measures are designed to protect traders. However, the knock-on impact is that traders looking for brokers with the highest leverage must sign up with offshore firms, which may not offer the same level of protection as UK-regulated brokerages. With this in mind, it is important to open an account with a trusted broker.

Are Brokers With High Leverage Good Or Bad?

Benefits

• Amplify profits: The main advantage of forex, stock and commodity brokers with high leverage quotes is the ability to open larger positions and generate bigger returns.
• Portfolio diversification: Because investors have more purchasing power, traders can speculate on a range of markets simultaneously, hedging existing positions and building a diverse investment portfolio with room for growth.

Risks

• Bigger losses: While profits are magnified, so too are losses. Beginners, in particular, can quickly find themselves in hot water when taking out highly leveraged trading positions. As a result, traders must ensure they utilise risk management tools to limit losses.
• Scams: Because UK investors will need to open accounts with offshore brokers to access the highest leverage, there is a greater risk of falling victim to a fraudulent provider. Sign up with a reliable trading platform to avoid scams.

FCA Leverage Limits

As outlined above, the top 100 brokers with high leverage authorised to provide retail trading services to UK investors must not offer leverage above 1:30. Professional traders, which we explore in more detail below, can qualify for higher rates. The asset traded can also impact the level of leverage available. We have broken down the FCA’s maximum thresholds by instrument below.

• Forex (e.g. USD/JPY): 1:30 retail traders, 1:500 professional investors
• Indices (e.g. FTSE 100): 1:20 retail traders, 1:200 professional investors
• Gold: 1:20 retail traders, 1:500 professional investors
• Other precious metals & commodities (e.g. copper): 1:10 retail traders, 1:50 professional investors
• Cryptocurrencies (e.g. XRP & HSC): 1:2 retail traders, 1:20 professional investors

As you can see, products and markets that point towards the most volatility and therefore more risk, have tighter controls.

In addition, the FCA imposes margin requirements that need to be met to keep a position open. The requirement varies among leveraged products, but for CFDs, it is usually 50%. If the trader’s account balance falls below this, they may face a margin call. Failure to comply with the margin call could see the trader’s position automatically closed out.

The result of the FCA’s requirements is that brokers with the highest leverage tend to be either unregulated or hold a license with a different financial watchdog. Traders can find brokers that operate Straight-Through Processing (STP) or Electronic Communication Network (ECN) trading models. The best true ECN brokers normally offer tighter spreads and higher leverage, but commission fees and other costs are usually higher.

Professional Traders

As we have seen above, UK investors that qualify as ‘professional traders’ can turn to brokers and practices with higher leverage of up to 1:500. To qualify for higher rates, investors must meet two of the following three criteria set by the FCA:

• Size of portfolio: The size of your investment portfolio must exceed £500,000. This includes cash deposits and financial instruments. Examples of valid savings and investments are stock portfolios, cash investments plus stocks and shares ISAs.
• Trade and volume size: You have sufficient experience trading leveraged products, with an average of 10 transactions every quarter, for the previous consecutive four quarters.
• Professional experience: You are currently working or have worked in the financial sector for at least a year.

If you satisfy two of these criteria, you can open a professional trading account with a supporting broker.

How To Minimise Risk When Trading With High Leverage

• Risk management: A stop-loss is an order to close a position once an asset reaches a certain price – which is chosen by the trader. This prevents the risk of a loss exceeding a certain level. Using a stop-loss is one of the best trading habits to get into.
• Hedge: You can offset your risk exposure when you open a position by taking out an opposing position in a related asset.
• Demo accounts: Practise using a broker with high leverage through a free demo account. This is a good way to get familiar with leveraged trading and the various alerts and tools that can be used to manage risk.

Comparing The Best Brokers With High Leverage

• Products: Check which markets the broker provides access to. The best brokers with high leverage for stocks and shares, indices, currencies, precious metals, energies and cryptos, offer access to major trading jurisdictions, including the UK, US, India or countries in Europe like Germany. Also, look at what leveraged trading products they offer and what the maximum rates and margin requirements are.
• Trading platform: Does the brokerage offer popular platforms like MetaTrader 4 or cTrader? Open a demo account to test drive a platform if you’re new to it.
• Features: What risk management tools does the broker with high leverage offer to help clients keep a handle on losses? Do they provide a range of pending orders and mobile price alerts, for example? Also check for negative balance protection.
• Promotions: Look at the quality of any no deposit bonuses and welcome offers. With that said, check for any conditions applied to withdrawals. The top firms should have knowledgeable customer service representatives that can answer questions on bonus terms and explain any variables.

Bottom Line

Brokers with the highest leverage offer traders the ability to multiply profits in return for a small deposit. Highly leveraged trading also means more opportunities for portfolio diversification. However, caution must be exercised. UK traders will need to open an account with a reliable offshore broker – see our list of recommended brands here. Traders will also need a robust risk management strategy.

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