Best High Leverage Brokers 2021

Best High Leverage Brokers 2021

Thinking about trading online but are somewhat lacking in the funds department? If so, you might want to consider a high leverage broker.

In a nutshell, high leverage brokers enable you to trade with a higher stake than your account balance allows. The maximum leverage you can get your hands on is dependant on where you live, and what asset you are looking to trade.

New to trading with leverage? Fear not, in this Best High Leverage Brokers 2021 Guide, we review the cream of the crop.

On top of saving you from having to research hundreds of providers in the space, we also talk about how leverage works, how to sign up, key metrics to consider, and how to place an order.

 

Table of Content

     

    eToro - Buy and Invest in Assets Commissions-Free

    Our Rating

    • Buy over 2,400 stocks, 16 cryptocurrencies, and 250 ETFs without paying any commissions
    • Trade thousands of CFDs
    • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
    • Perfect for newbie traders and heavily regulated

     

    Best High Leverage Brokers 2021 – Our Top 5 Picks

    When searching for the best high leverage brokers, it’s also crucial that you think about other important factors.

    For instance:

    • Is the platform regulated?
    • Which assets will you be able to access?
    • What commissions and fees are you expected to pay?
    • Is the broker’s website easy to navigate for your level of experience?

    When reviewing the best high leverage brokers for your consideration – all of the above metrics were taken into account.

    See our top 5 high leverage brokers of 2011 below.

    1. eToro – Best All-Round High Leverage Broker 2021

    eToro is a well respected social trading platform, serving over 17 million clients globally. This high leverage broker made our number 1 spot for various reasons, one of which is its strong regulatory standing. The provider holds a license from some of the most well respected regulatory bodies in the world, which includes the FCA (UK), CySEC (Cyprus), and ASIC (Australia). US clients are covered by FINRA.

    Importantly, the aforementioned regulation means that some clients will be capped with the amount of leverage they can access.

    In Australia, the UK, and parts of Europe, the leverage offered by eToro will be up to:

    • 1:2 on all cryptocurrencies - UK also excluded as crypto CFDs are banned
    • 1:5 on all CFD stocks and ETFs
    • 1:10 on all commodities, excluding gold and non-major equity indices
    • 1:20 on all non-major currency pairs, major indices, and gold
    • 1:30 on all major currency pairs

    As you can see, when trading commodities like copper, silver, and wheat - eToro will enable you to multiply your position by as much as 10x. You'll also be able to increase your stake 5-fold when trading selected stocks. Some other countries served by eToro have no leverage restrictions at all.

    Regardless, we cover leverage in detail throughout this guide. The long and short of it is that all regulated brokers will be restricted by the same limits according to the laws in your location, so bear this in mind. Alternatively, if you classify as an 'Elective Professional' client, eToro will offer you higher leverage than that mentioned above.

    • In terms of tradable assets, eToro offers access to indices, commodities, ETFs, forex, and cryptocurrencies.
    • Not only does this crowd-pleasing broker enable you to invest in a traditional sense -you can also access a plethora of CFD instruments.
    • This means you are able to apply leverage to most trades.
    • Moreover, you can access over 2,400 stocks from 17 marketplaces from around the world.

    If you are wondering about fees, as you should - eToro is 100% commission-free. This means you can buy or sell any asset without having to worry about trading fees. In addition to this, there are no monthly fees for managing your account. If you reside in the UK and wish to invest in traditional shares, you will not be charged any stamp duty on your purchase.

    If eToro sounds like your kind of broker, you will be pleased to know that opening an account at this platform takes a matter of minutes. This is thanks to the provider's modern ID validation tech. There are heaps of compatible payment methods, so making a deposit should be a breeze.

    This high leverage broker has some great educational content for any newbies out there. You might also want to try out the 'Copy Trading' feature, enabling you to invest in and copy a pro-investor. This means whatever they buy and sell is reflected in your portfolio, without needing to lift a finger.

    Moreover, if you are looking to make smaller investments you can trade with a stake from as little as $25 on all cryptocurrencies, from $50 on all stocks, and ETFs come with a minimum trade size of $200. If you want to have a clear understanding of the markets, you might also want to take advantage of the free demo account - which is loaded with $100,000 in paper money.

    Our Rating

    • Huge variety of stocks, forex, crypto-assets, ETFs, commodities, and more
    • Commission-free and high leverage broker
    • Easy to navigate platform and fast and easy sign-up
    • Lacking in technical analysis for advanced traders
    75% of retail investors lose money when trading CFDs with this provider

    2. EightCap – Great High Leverage Broker supporting MT4/5

    EightCap is a multifaceted trading platform that has been on the scene for over 10 years now. Not only that, but the broker has over 200 financial instruments available. This includes shares, commodities, indices, and more than 40 forex pairs.

    This is one of the best platforms we came across when conducting our in-depth analysis of the best high leverage brokers of 2021. The broker is regulated by two financial authorities - ASIC and VFSC. EightCap states on its website that all trading accounts will start with leverage of 1:100.

    As is the case at eToro, the amount of leverage given will depend on where you live. For instance, if you reside in Australia you will able to access as much as 1:500 leverage. However, this is under the condition you have a minimum of $5,000 in account equity.

    This popular online broker offers a good selection of features such as trading robots and expert advisors. You can also access historical data, 30 built-in indicators, 9 time-frames, and 24 graphical objects. For people who like to incorporate third-party platforms into their trading strategy, you are in luck. EightCap is fully compatible with MT4 and MT5.

    In terms of accounts, this platform offers a 'Standard Account' that is 100% commission-free. There is also the 'Raw Account', where you are required to pay $3.50 for each lot. You can check on either of these accounts on the move by downloading the broker's proprietary mobile application - available on both iOS and Android.

    The minimum deposit at this high leverage brokerage is $100. When it comes to compatible payment methods, you can choose between credit/debit cards, or e-wallets such as Skrill, Neteller, and more. It's important to be mindful that you are likely to be trading via CFDs, so you must factor in the overnight financing fees these contracts invite. We talk about such fees in more detail later.

    LT2 Rating

    • Regulated by ASIC
    • 200+ assets to trade 100% commission-free
    • Works with both MT4 and MT5
    • No cryptocurrencies available
    Your capital is at risk of loss when trading CFDs at this platform

    3. Capital.com – Great High Leverage Broker with Only $20 Minimum Deposit

    Capital.com has only been around for about 5 years, but has already managed to accumulate nearly 100,000 traders, from over 200 countries. In terms of regulation, the popular online broker is authorized by the FCA and CySEC, both of which are well known in the industry. Just one of the benefits is that the platform keeps all client funds in a separate account. This means your money will never be affected by corporate or sovereign debts.

    Furthermore, this online broker may be worth considering if you have zero to little experience in the trading scene. The minimum deposit is a very newbie-friendly $20. However, it's important to note that if, instead of an e-wallet or credit card, you intend on funding your account via bank transfer - the minimum deposit at this platform is 250 of whatever your base currency is.

    Capital.com is packed with educational content. This includes guides on specific asset classes such as forex, cryptocurrencies, ETFs, shares, and more. The CFD brokers also offer a free demo account for all clients. This allows you to trade in an environment that mirrors the real-world market conditions.

    Maximum leverage for most retail clients is 1:30. If you fall into the professional trader category, you can access up to 1:500. Naturally, this also depends on the asset you are trading. Another major pull for this provider is that you can trade all markets without paying a cent in commission.

    Furthermore, the majority of markets on this platform come with tight spreads. Capital.com has its own app, which is compatible with both iOS and Android. This means you can buy, sell and check on your trades on the go.

    Our Rating

    • Heaps of different markets to trade with 0% commission
    • Minumum deposit a mere $20
    • Regulation comes from FCA and CySEC
    • No option to build own custom trading strategies
    82.61% of retail investors lose money when trading CFDs with this provider

    4. AvaTrade – Best High Leverage Broker With Heaps of Techincal Analysis Tools

    AvaTrade is a popular online CFD platform that is suitable for traders of all skill sets.Leverage offered to clients from outside of the European Union is capped at 1:20 on cryptocurrencies, 1:20 on individual shares, and ETFs. When it comes to commodities, you can get as much as 1:200, and on indices and forex, you can multiply your position by a whopping 1:400.

    The key phrase here though is 'clients from outside the EU'. The reason is that as we mentioned, there are leverage limits in place depending on your location. When it comes to the all-important regulatory standing, AvaTrade excels. The online broker is regulated by several authorities around the world. From the UK, Australia, and Europe - all the way to Abu Dhabi, Japan, and South Africa.

    Furthermore, whether you are a beginner or a seasoned trader, there is lots on offer in terms of trading tools. You have access to various charts, economic indicators, risk management tools, and even portfolio simulations. This will all be done on AvaTrade's own proprietary trading platform.

    • If you like a bit more when it comes to technical analysis, you will be pleased to know that AvaTrade is compatible with third-party trading platforms MT4 and MT5.
    • As we said in our EightCap review - this enables you to access a plethora of trading tools and helpful features like indictors and such.
    • For those who like to both trade and socialize, the broker is also compatible with 'Zulutrade' and 'DupliTrade'.

    AvaTrade has a whole host of CFD instruments on offer, which is inclusive of cryptocurrencies, forex, indices, commodities, and ETFs. All of these markets can be accessed without paying a cent on commission fees. Moreover, for those who like to buy and sell on the move - the 'AvaTradeGo' app is available for download on Android and iOS.

    You can get started on this platform for as little as $100. This can be done via credit/debit card or traditional wire bank transfer. The latter will always take longer to process - which is the same with all online brokers.

    Our Rating

    • Minumum deposit of just $100
    • Regulated in multiple juresdictions
    • A plethora of zero commission assets to trade
    • Inactivity fees a little steep
    75% of retail investors lose money when trading CFDs with this provider

    5. EuropeFX – Regulated High Leverage Broker With Verious Platforms

    EuropeFX is regulated by CySEC and offers over 300 tradable assets from various markets. Furthermore, you will have access to heaps of CFDs on blue chip socks, forex, commodities, indices, and cryptocurrencies.

    For fans of MT4 out there, this online broker works well with the third-party trading platform. This enables you to utilize automatic trading tools like signals and EAs, not to mention social investment features. If you would prefer to stick with the provider's own platform 'EuroTrader 2.0', this also comes packed to the rafters with trading features and tools such as 'Mirror Trader'.

    This no dealing desk online broker is also able to offer clients STP execution via MT4. It's easy to get started at EuropeFX and the minimum deposit is just $200.

    Finding a compatible payment method shouldn't be a problem as the broker accepts both credit and debit cards as well as bank transfers. There are multiple accounts available aimed at people with various skillsets.

    Our Rating

    • Suitable for experienced traders
    • Up to 1:300 leverage for professional traders
    • Under CySEC regulation
    • Premium account expensive at $50,000
    82.61% of retail investors lose money when trading CFDs with this provider

    High Leverage Brokers Unwrapped – Important Factors

    The online trading scene is rife with scammers and shady companies. As such, the best high leverage brokers will be fully regulated for your protection.

    In this section of our guide, we talk about the ins and outs of high leverage, and how that is affected by the rules and regulations set out by such authorities.

    What is Leverage?

    The likelihood is that you will know what leverage is and how it works. However, in the name of thoroughness, or for any beginners – let’s explain. In a nutshell, leverage is like a loan from your broker. This ‘loan’ allows you to trade with more than you actually have in your trading account.

    In most cases, leverage is shown as a ratio such as 1:2, 1:10, or even 1:500. At some platforms, such as eToro, leverage is displayed as a multiple such as x2, x5, and so forth. To clear the mist, let’s imagine that you open a $1,000 position on copper using leverage of x10. Put simply, you are able to multiply your stake 10 fold. This means your $1,000 actually becomes $10,000 in trading capital.

    See below a practical example of how using the best high leverage brokers might affect your trade:

    • You think the price of EUR/USD is going to increase – so place a $1,000 buy order
    • You decide to utilize leverage of x10
    • Later in the day, the same pair is worth 3% more
    • Pleased with your gains you decide to place a sell order
    • Had you not applied leverage to this trade, you would have made $30 (3% of $1,000)
    • Because you decided to apply leverage to your trade, this $30 profit instead becomes $300

    As you can see, by using the best high leverage brokers, you are able to magnify your gains. This means even if your brokerage balance doesn’t allow a large stake, you can simply apply leverage and go for it anyway. Importantly, be mindful that whilst leverage amplifies your profit – if you speculate incorrectly, it will amplify your losses.

    Potential Leverage Limits

    We have mentioned leverage limits throughout our reviews of the best high leverage brokers. To clarify, in some countries, there are no limits in place at all.

    Whereas, on the contrary, in the US you can access up to 1:50 leverage on forex trades. However, no CFDs are permitted (on any asset).

    Over in the UK, most of Europe, and Australia (as of April 2021) – the maximum leverage allowed for retail clients is as follows:

    • 1:30 on major FX pairs
    • 1:20 on exotic and minor FX pairs, gold, and major indices
    • 1:10 on commodities
    • 1:5 on ETFs or shares
    • 1:2 on cryptocurrencies (excluding the UK)

    We mentioned retail clients there. For those unaware, a retail client is someone who trades on their own personal account. If you fall into the category of a retail client yourself but are interested in higher leverage – we talk about your options next.

    Option 1: Open an Account as a Professional Client

    Option 1 is to open an account as a ‘Professional Client’. For those unaware, people who qualify as institutional or ‘pro’ trader often trade much larger volumes – sometimes on behalf of other groups or institutions.

    There are, of course, requirements to be able to open such an account. In fact, you must comply with at least two of the following conditions.

    • You must have placed a minimum of 10 trading transactions in each quarter, covering the last 4 years. This includes any other platform, meaning it doesn’t necessarily need to have been done via the best high leverage broker you are looking to sign up with.
    • A high leverage broker will require you to have no less than 1 year of proven experience in the financial sector. The chances are that you will also need to be able to show that you have worked as a professional investor or trader as well.
    • Savings/investments or assets totaling no less than $/€/£ 500,000 – real estate does not count towards this

    As is crystal clear, it’s hardly a walk in the park becoming a professional client. It’s also highly likely that the provider will need you to submit some form of documentation to confirm your claims.

    Option 2: Opt for an Offshore Broker

    When looking for high leverage brokers, the second option is to use an offshore platform to escape the leverage restrictions enforced by regulatory entities. This might sound good, but when you consider the protection and standards these authorities impose on online brokers – you’re in a vulnerable position trading via an unregulated space.

    With this in mind, you should proceed with caution when thinking about how to find the best high leverage brokers.

    Leverage and Overnight Financing

    Another important consideration when searching for the best high leverage broker is overnight financing fees. For those unaware, this is a fee charged for each day a leveraged trade is active, so it’s comparable to an interest rate.

    Sometimes called a ‘swap fee’, this is charged because you have essentially loaned money from the platform in order to amplify your stake. This is a service – after all, and just like any business, the brokerage needs to be sure that it will see a return. When it comes to how much the overnight financing fee will be, it will vary between platforms.

    Furthermore, the time of day at which the overnight financing fee is initiated will depend on the online broker in question.

    • For instance, at eToro, the fee on your leveraged trade kicks in if your position is still open by 17:00 New York, USA time. To give you a clearer indication of what this might be in your location – this is 22:00 United Kingdom time, and 09:00 Canberra, Australia time.
    • Furthermore, if you were to open a new leveraged position at 23:00 on Tuesday, you wouldn’t be charged until 22:00 on Wednesday

    If you consider yourself a short-term trader, this is one of the most important fees to be mindful of. The fee will be charged daily without fail. Ergo, if the online broker is charging an extortionate amount for you to keep positions open – it won’t be conducive to you being a profitable trader.

    When conducting research for our list of the best high leverage brokers, we found eToro to be number 1. The broker is very transparent when it comes to fees. In fact, when placing an order and adjusting your stake and leverage – the daily overnight financing fee is shown clearly within the order box.

    For clarification, take a look at leverage on an eToro trade below:

    • You decided to trade $100 worth of Amazon shares with x2 leverage – the overnight fee would be $0.04 daily and an extra $0.07 on a weekend
    • Should you change that stake from $100 to $2,000, still with x2 leverage – the daily fee changes to $0.72 daily, and an extra $1.43 on a weekend

    At eToro, you will always be able to see what overnight financing fee you are expected to pay before you go ahead and confirm your order. The high leverage broker is super customer-friendly, and transparent when it comes to fees.

    Margin and Leverage – What’s the Difference?

    When researching the best high leverage brokers online you have no doubt noticed that some platforms use the term ‘leverage’, and some ‘margin’. Notably, there are contrasts between the two.

    To clear the mist:

    • As we touched on, leverage increases your stake. If you want to increase your stake 2-fold, you apply leverage of x2 – turning a $100 stake into $200. If you apply leverage of x5, your $100 becomes $500.
    • In layman’s terms, ‘margin’ is the amount of money you need to put into the trade from your own account. As such, you will need to meet the margin requirements in order to be given the amount of leverage you are hoping for

    In our example above, your margin is $100 in both scenarios and might be shown as 1:2, and 1:5 at another brokerage. When looking for the best high leverage brokers, it is important that you have a firm grasp of how margin and leverage work. This can help you to avoid the dreaded ‘account liquidation’.

    If your trade goes in the opposite direction to how you predicted by a certain amount – your account will be liquidated. As a result, you will lose your stake in its entirety.

    Key Metrics to Finding a High Leverage Broker

    It’s important to not have the blinkers on when it comes to finding the best high leverage brokers. In other words, high leverage is good – but be mindful of other components.

    This includes:

    • Does the high leverage broker hold a license from one or more respected regulatory bodies?
    • Is the high leverage broker easy enough to navigate for your skillset?
    • What commissions and fees will I be expected to pay the high leverage broker?
    • What assets will be available to me via the high leverage broker?
    • What deposit methods are compatible with the high leverage broker?

    When reviewing our top 5 high leverage brokers, we found that eToro covers every component listed above. The popular online broker is fully regulated, user-friendly, commission-free and offers heaps of assets and payment types.

    Start Trading Today With a High Leverage Broker

    Now that you understand the nuts and bolts of trading via a high leverage broker – you can start trading! Of course, first, you will need to sign up with the respective platform.

    Opening an account is super easy. However, in case you have never traded before, you will find below a simple walkthrough of how to sign up with our top-rated high leverage broker eToro.

    Step 1: Sign up and Upload Some ID

    To get the ball rolling, head over to the official eToro website and hit ‘Join Now’.

    Next, you will be required to enter some information about yourself – which includes:

    • Full name
    • Username
    • Email address
    • Unique password
    • Residential address
    • Date of birth
    • Mobile phone number
    • Tax number

    Step 2: Validate Your ID

    As we have touched on various times, regulated online brokers have to follow strict rules imposed by financial authorities. One such rule is KYC, which insists that financial providers verify your identity. This is in a bid to prevent financial crime.

    As such, you will be required to provide:

    • Proof of identity – in the form of a driver’s license, passport, or accepted government-issued ID
    • Proof of address – in the form of a bank account statement or utility bill, issued within the last 3 months

    If you don’t have the time now, you can actually go ahead and start trading on eToro. However, you must make sure you upload these documents before you make a withdrawal request, or try to deposit over $2,250.

    Step 3: Deposit Some Funds Into Your Trading Account

    Now, you can deposit some funds into your new eToro account. There are heaps of options available, so you should have no problem finding your preferred method.

    You can deposit funds on eToro using the following payment types:

    • Credit and debit cards such as Maestro, Mastercard, and Visa
    • e-wallets such as Neteller, PayPal, and Skrill
    • Bank transfer
    • and more, depending on your location

    Step 4: Select an Asset to Trade

    If you have an idea of what asset you might like to trade, you can utilize the search bar. To give you a clear example, here we are looking for New Zealand dollar against the US dollar.

    As soon as you start to enter the name of the asset – you will see it come up as a suggestion – it really is that simple.

    If you are yet to decide what you want to trade, click on ‘Trade Markets’ to the left-hand side of your account page for inspiration. This will bring up a range of different asset classes, and a useful filter to help you narrow down your search.

    Step 5: Create an Order

    When you see the market you are interested in, you can click ‘Trade’. This will reveal an order box. Depending on which way you believe the price of the asset will go you can now choose between a buy and sell order.

    Next, enter your stake and select your desired leverage amount. As we said, go careful with leverage as it can boost both your gains as well as your losses.

    Look over your order to make sure you are happy and click ‘Open Trade’ – eToro will execute your commission-free order as instructed by you!

    Best High Leverage Brokers: Conclusion

    Throughout this guide, we have covered the ins and outs of trading via the best high leverage brokers. This includes key metrics like leverage limits, regulation, available assets, and more. In terms of safety, you should be looking for licenses from bodies such as the FCA, ASIC, and CySEC.

    It’s important to remember – although it might seem tempting to get high leverage from an unregulated space – this should be avoided at all costs. At eToro, you can trade a huge variety of assets, with the highest leverage permitted for where you live. On top of that, you can do so on a completely commission-free basis.

     

    eToro - Buy and Invest in Assets Commissions-Free

    Our Rating

    • Buy over 2,400 stocks, 16 cryptocurrencies, and 250 ETFs without paying any commissions
    • Trade thousands of CFDs
    • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
    • Perfect for newbie traders and heavily regulated

     

    FAQs

    What kind of trader should use high leverage?

    Someone who wants to boost their trading stake - and comprehends the risks involved with using high leverage.

    What is the best high leverage broker 2021?

    We found that the best leverage broker in 2021 is eToro. The platform is fully regulated, offers heaps of assets, and is 100% commission-free.

    Is it safe to use a high leverage broker?

    Yes, it is perfectly safe to use a high leverage broker, but stick like glue to regulated ones such as eToro, EightCap, Capital.com, AvaTrade, or EuropeFX.

    Can I trade cryptocurrencies via leveraged CFDs?

    Yes, you can, but it depends on where you live. For instance, if you live in the US, CFDs are banned regardless of the asset being traded. If you live in the UK, you can access any CFD - however, cryptocurrencies CFDs are prohibited.

    What is the biggest benefit from applying leverage?

    The biggest advantage of applying leverage is that if you predict the direction of the market correctly, your profits are amplified!

     

    Author : Samantha Forlow

    Samantha Forlow

    Samantha is a UK-based researcher and writer that specializes in all-things finance. This covers everything from traditional equity and fund investments, to forex and CFD trading. Samantha has been writing financial-based content for several years and has a variety of publications in the online domain. Crucially, she is able to explain complex financial subjects in a newbie-friendly manner.