HERE IS A LIST OF FOREX BROKERS THAT OFFER BOTH LOW SPREADS AND HIGH LEVERAGE
Brokers With Low Spreads and High Leverage
Financial markets are very complex with a lot of moving parts. Successfully trading forex and other markets requires a sound of market dynamics and a solid trading strategy. On top of that, traders also need the right tools and partners to succeed. The spreads and leverage offered by a broker are two of the most important trading tools that traders can utilise in the market.
These two directly impact the earning potential of a trader. A combination of low spreads and high leverage is a perfect match for traders who want to maximise their earnings in the market. But picking the right partner broker for this is also crucial. In this article, we are going to explore some of the best brokers with low spreads and high leverage. Let’s begin.
Understanding Spreads and Leverage
Before diving into specific brokers, it's crucial to understand the concepts of spreads and leverage in detail. A spread is the difference between the bid and ask price of a currency pair. For instance, if the bid price for EUR/USD is 1.1200 and the asking price is 1.1202, the spread is 2 pips. Lower spreads mean traders pay less to trade, potentially increasing their profit margin.
On the other hand, Leverage is a tool that allows traders to control a larger position with a smaller initial investment. For instance, a leverage ratio of 1:500 means that for every $1 of your capital, you can control a position worth $500. While leverage can amplify profits, it also increases the risk of substantial losses. Hence, it’s vital to use leverage wisely, especially in volatile markets. If the market moves against your position, it can quickly cause drastic losses. This further underpins the importance of low spreads on a broker site.
With that, let’s now take a look at some of the best brokers with low spreads and high leverage. Aside from the spreads and leverage, we will also consider the brokers’ regulations, trading platforms, and the collection of market products available.
Please note that high leverage is subject to availability and its availability may be limited to traders from certain countries.
Best Brokers With Low Spreads and High Leverage
Exness
Exness is one of the most prominent brokers when it comes to high leverage and low spreads. This broker offers its traders very high financial leverage of up to 1:unlimited. This high leverage allows traders to control considerably large positions with a small capital. On top of that, this broker offers some of the lowest spreads in the market.
The standard account offers spreads from as low as 0.2 pips while the standard cent account features spreads from 0.3 pips. Both of these accounts do not charge a commission. Similarly, the pro account does not charge a commission and has spreads from as low as 0.1 pips for major currency pairs. The zero account has zero spreads on the top 30 instruments plus a commission from $0.05 per side per lot. Finally, the raw spread account features spreads from 0.0 pips plus a commission of up to $3.5 per side per lot.
In terms of market products, traders on Exness have plenty of investment options. This broker offers its traders access to CFDs on crypto, forex, commodities, stocks, metals, and indices. The trading platforms include MetaTrader 4, MetaTrader 5, Exness Terminal, and Exness Trade app.
On another positive note, this broker’s activities are supervised by a variety of financial institutions. Exness is overseen by several regulatory bodies including the FSCA in South Africa, the CMA in Kenya, the CySEC in Cyprus, and the FCA in the UK. This robust regulatory framework enhances trader confidence in the platform.
HFM
HFM is well known for providing a favourably high leverage combined with some of the lowest spreads. The leverage that Nigerian traders have access to on this broker site can go as high as 1:2000. On the other hand, the spreads are very low, specifically on two of its accounts. The Pro account offers traders spreads from 0.5 pips for major currency pairs with no added commission. Further, the Pro Plus account offers even lower spreads that start from 0.2 pips* for major currencies, again with no commission. The only catch is that the Pro account requires a minimum deposit of 50,000 NGN or $100 while the Pro Plus account requires a minimum deposit of 200,000 NGN or $250.
The other four accounts do not feature a minimum deposit requirement. The Premium and the Cent accounts both feature spreads as low as 1.2 pips with no commission charged. The top-up bonus account features spreads from 1.4 pips for major currency pairs. Finally, the Zero account has spread from 0.0 pips with a commission as low as $3 per side per lot.
All these accounts give traders access to a deep collection of instruments. Clients of HFM can trade over 1,000 CFDs on forex, indices, commodities, energies, metals, stocks, cryptocurrencies, bonds, and ETFs. These markets are available to trade on MetaTrader 4, MetaTrader 5, and HFM Platform.
On regulations, this broker operates under the supervision of the FSCA in South Africa, the CMA in Kenya, the FSC in Belize, and the CySEC in Cyprus, among others.
XM.com
XM is another popular broker that deserves to be on this list of brokers with low spreads and high leverage. With this broker, Nigerian and international traders have access to a leverage of up to 1:1000. On top of that, spreads are as low as 0.6 pips on the XM Ultra Low account with no commission required. That is an impressive combination for traders looking for high leverage and low spreads. In contrast, the standard account and the micro account charge spreads from 1.0 pips for major currency pairs with no commission required also.
On market products, traders on this broker site are spoilt for choice. They have access to well over 1,000 different market products. This includes CFDs on forex, indices, cryptocurrencies, commodities, shares, energies, and precious metals. The platforms offered by the broker include the MetaTrader 4, MetaTrader 5, and The XM Trading Point App.
Further, this broker also has regulations from a variety of financial institutions. Notably, XM has regulations from the FSC in Belize, the CySEC in Cyprus, and ASIC in Australia.
FBS
FBS is the next broker that offers traders leverage as high as 1:3000, which allows traders to control favourably large positions in the market. Additionally, the trading fees of this broker are fairly low with the standard account featuring spreads as low as 0.7 pips for major currency pairs with no commissions charged.
The trading platforms available on this broker site include MetaTrader 4, MetaTrader 5, and FBS App. These allow traders to access a deep collection of market products including forex pairs, cryptocurrencies, stocks, energies, indices, and metals. This allows investors to diversify their portfolios as they see fit.
FBS emphasises security and transparency by complying with stringent regulations from respected financial authorities. This includes licenses from the FSCA in South Africa, the CySEC in Cyprus, and the ASIC in Australia. These licenses reflect FBS's dedication to upholding financial laws and safeguarding client funds.
IC Markets
Trading Forex and CFDs entail risk.
Your capital is at risk.
Next up is IC Markets which offers its traders a leverage of up to 1:1000 and low spreads. The standard account of this broker features spreads from as low as 0.8 pips for major currency pairs with no commission required. On the other hand, the Raw Spread accounts feature a commission when trading based on the trading platform a trader uses. One of the accounts is only available on the cTrader platform and features a commission of $3 per $100,000 traded. The other account is available on the MetaTrader platforms and comes with a commission of $3.5 per side per lot. Both accounts have spreads from as low as 0.0 pips.
Traders are always looking to trade with brokers that have regulations from recognised institutions and IC Markets does not disappoint. It operates with regulations from the FSCA, the CySEC, and the ASIC. Such regulations are what make the broker such a favourite among many traders.
Moreover, this broker provides traders with plenty of investment opportunities. Clients of this broker have access to CFDs on forex, cryptocurrencies, stocks, indices, commodities, and futures. The trading platforms available to use include MT4, MT5, WebTrader, and cTrader.
OctaFX
Trading Forex and CFDs entail risk.
Your capital is at risk.
OctaFX is the last broker we will feature in this article fits in with some of the best brokers with low spreads and high leverage. OctaFX offers three primary account types: OctaTrader, MetaTrader 5, and MetaTrader 4. All accounts feature floating spreads starting from a competitive 0.6 pips and zero commission fees. Additionally, this broker features a competitively high leverage of up to 1:1000.
Traders can invest in a variety of markets. The global markets available include forex currency pairs, shares, indices, commodities, and cryptocurrencies. The trading platforms available for traders to use include MetaTrader 4, MetaTrader 5, and OctaTrader. The broker offers a wide range of account base currencies including USD and Naira.
On regulations, this broker operates under the supervision of the FSCA in South Africa and the CySEC in Cyprus. Needless to say, regulatory licenses alone are never enough as there have been instances of regulated brokers breaking the law. However, it is better to trade with a broker that holds licenses from well-known organisations.
Selecting a broker with low spreads and high leverage can significantly impact the trading experience of an investor. This is because spreads and leverage are two of the most important tools in trading. The brokers listed in this article are among the best in the industry offering investors low spreads and high leverage.
However, while high leverage can amplify profits, it also increases the risk of losses. As such, it’s essential to use leverage carefully and employ proper risk management techniques. However, it's crucial to remember that these factors alone do not guarantee profits. A well-rounded trading strategy, coupled with risk management and continuous learning, is essential. Further, remember to consider factors such as regulation, spreads involved, trading platforms, and collection of instruments when choosing a broker.