| Updated: January 15, 2025In the field of foreign exchange trading, leverage plays a key role in determining the potential returns on investments. Forex brokers offering 1:100 leverage bring an opportunity for traders to amplify their trading capital, allowing for greater flexibility and potential profits. This publication will delve into the concept of leverage and its types, as well as provide guidance on how to calculate margin, and mitigate associated risks.
Below you can find a list with the best Forex brokers offering leverage of 1:100:
Top 10 Forex Brokers with 1:100 leverage
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading Instruments- Forex
- Commodities
- Futures
- Indices
- Stocks
- Cryptocurrencies
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
-
Eightcap
- Traders can enjoy competitive trading conditions through different account types
- Offers access to over 800 CFD markets through TradingView
- Platforms like MT4 and MT5 enable multi-device trading
Trading Instruments- Forex CFDs
- Commodity CFDs
- Shares CFD's
- Index CFDs
- Crypto CFD's
-
FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Plus500 | 1.2 | $0 |
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| Eightcap | 1.00 (min) | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| FxPro | 0.25 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Plus500 |  |
$100 |
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Global Prime | |
$0 |
| Axi | |
$0 |
| CMC Markets | |
$0 |
| IC Markets | |
$200 |
| Eightcap | |
$100 |
| FxPro | |
$100 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Plus500 | |
1:30 |
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| BlackBull Markets | |
1:500 |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| Axi | |
1:30 |
| CMC Markets | |
1:30 |
| IC Markets | |
1:30 |
| Eightcap | |
1:30 |
| FxPro | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Plus500 | |
60+ |
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| BlackBull Markets | |
70+ |
| Global Prime | |
56 |
| Axi | |
80 |
| CMC Markets | |
330+ |
| IC Markets | |
61 |
| Eightcap | |
50+ |
| FxPro | |
70+ |
Comprehensive Comparison of Forex Brokers with 1:100 Leverage
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$100 |
|
1.2 | ||
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$0 |
|
0.5 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$100 |
|
1.00 (min) |
|
|
 |
$100 |
|
0.25 |
|
What is Leverage?
Leverage is a fundamental concept in forex trading that enables traders to get exposure to larger positions with a smaller amount of capital. It is, essentially, a loan provided by the broker to the trader, allowing them to increase their trading power and potential returns. Leverage is expressed as a ratio, where the first number represents traders’ margin, or capital required to control a larger position. For instance, a leverage ratio of 1:100 means that for every $1 of capital, the trader can control $100 worth of assets.
Types of Leverage Ratios
Forex brokers offer various leverage ratios, each with its own level of risk and potential reward. The most common leverage ratios include:
- 1:2 (50% margin)
- 1:5 (20% margin)
- 1:10 (10% margin)
- 1:30 (3.33% margin)
- 1:50 (2% margin)
- 1:100 (1% margin)
- 1:200 (0.50% margin)
- 1:400 (0.25% margin)
- 1:500 (0.20% margin)
- 1:1000 (0.10% margin)
These ratios indicate the percentage of the total position size that the trader must deposit as margin. For example, with a 1:100 leverage ratio, the trader must deposit 1% of the total position size as margin.
When considering the different leverage ratios, traders must also take into consideration the regulatory limitations within the country they reside in. For instance, the leverage limit for retail traders residing in EU countries, the United Kingdom, and Australia is 1:30 for major forex pairs and 1:20 for minor currency pairs. In the United States, leverage on this asset class is capped at 1:50. Professional traders, however, have access to higher leverage ratios, such as 1:100.
How to Use Leverage in Forex Trading?
Using leverage in forex trading can be a powerful tool for amplifying potential returns, but it requires careful consideration and risk management. Here are some key points to keep in mind:
- Leverage can increase potential profits, but it also increases potential losses.
- Traders should only use leverage that they can afford to lose.
- It’s essential to set realistic trading goals and risk management strategies.
- Traders should monitor their accounts closely and adjust their leverage accordingly.
What is Margin in Forex Trading?
Margin is the amount of capital required to open and maintain a trading position. It is a percentage of the total position size and is determined by the leverage ratio. For example, with a 1:100 leverage ratio, the margin requirement is 1% of the total position size. Margin is, essentially, a deposit that the trader must make to open a trading position, and it is used to cover potential losses.
-
How to Calculate Margin?
Calculating margin is a crucial step in understanding how much capital is required to open and maintain a trading position. The margin calculation is based on the leverage ratio and the position size. Here’s a step-by-step guide on how to calculate margin:
- Determine the Leverage Ratio: The first step is to determine the leverage ratio offered by the broker. For example, a 1:100 leverage ratio means that for every $1 of capital, the trader can control $100 worth of assets.
- Determine the Position Size: The next step is to determine the position size, which is the total value of the trade. For example, if the trader wants to buy 1 lot of EUR/USD, the position size would be $100,000 (1 lot = 100,000 units of the base currency).
- Calculate the Margin Requirement: The margin requirement is a percentage of the position size, which is determined by the leverage ratio. For example, with a 1:100 leverage ratio, the margin requirement is 1% of the position size.
-
Margin Calculation Formula
The margin calculation formula is:
Margin = (Position Size x Margin Requirement)
Where:
- Position Size is the total value of the trade
- Margin Requirement is the percentage of the position size, which is determined by the leverage ratio
Example Calculations
Here are some example calculations to illustrate how to calculate margin:
Example: Leverage ratio = 1:100, Position size = $10,000
Margin requirement = 1% of $10,000 = $100
Margin = $100
Many brokers and trading platforms offer margin calculation tools that can help traders calculate the margin requirement for a specific trade. These tools can be useful for traders who want to quickly and accurately calculate the margin requirement without having to perform the calculations manually.
Forex Leverage and Margin Calls
A margin call occurs when the trader’s account balance falls below the required margin level. This can happen when the trader’s position is losing money, and the broker requires additional funds to cover the potential losses. Margin calls can be avoided by:
- Monitoring account balances closely
- Adjusting leverage ratios accordingly
- Setting stop-loss orders to limit potential losses
- Maintaining a sufficient amount of capital in the trading account
Advantages and Disadvantages of 1:100 Leverage
The 1:100 leverage ratio is a popular choice among forex traders, offering a balance between potential returns and risk. Here are some advantages and disadvantages to consider:
Advantages of 1:100 Leverage
- Higher Potential Returns: With a 1:100 leverage ratio, traders can control larger positions with a smaller amount of capital, potentially leading to higher returns on investment.
- Greater Flexibility: A 1:100 leverage ratio provides traders with greater flexibility in their trading strategies, allowing them to open multiple positions and manage risk more effectively.
- Increased Trading Power: The 1:100 leverage ratio gives traders more trading power, enabling them to take advantage of market opportunities that may not be available with lower leverage ratios.
- Improved Scalability: With a 1:100 leverage ratio, traders can scale their trading strategies more easily, allowing them to increase their position sizes as their accounts grow.
- Competitive Trading: The 1:100 leverage ratio is a common offering among forex brokers, making it easier for traders to compare and choose between different brokers.
Disadvantages of 1:100 Leverage
- Higher Risk of Significant Losses: The 1:100 leverage ratio increases the risk of significant losses, as even small market movements can result in substantial losses.
- Increased Potential for Margin Calls: With a 1:100 leverage ratio, traders are more likely to receive margin calls, which can result in the closure of positions and potential losses.
- Over-Trading: The high leverage ratio can lead to over-trading, as traders may feel tempted to open multiple positions to maximize potential returns, increasing the risk of significant losses.
- Market Volatility: Forex markets can be highly volatile, and sudden price movements can result in significant losses, especially with a 1:100 leverage ratio.
- Emotional Trading: The high leverage ratio can lead to emotional trading, as traders may become more aggressive and impulsive in their decision-making, increasing the risk of significant losses.
Strategies to Mitigate Leverage Risk in Forex Trading
To mitigate the risks associated with trading with 1:100 forex brokers, traders can employ several strategies, including:
- Risk management: Set realistic trading goals, and limit potential losses by using stop-loss orders and position sizing.
- Diversification: Diversify trading portfolios by opening positions in different currency pairs and asset classes.
- Hedging: Use hedging strategies to reduce potential losses by opening opposing positions.
- Education: Continuously educate yourself on forex trading, risk management, and market analysis to improve trading skills and decision-making.
Conclusion
Forex brokers offering 1:100 leverage provide traders with the opportunity to amplify their trading capital and potential returns. However, it’s essential to understand the risks associated with high leverage ratios and to employ effective risk management strategies. By carefully considering leverage ratios, margin requirements, and trading strategies, traders can mitigate potential losses and maximize their trading potential.
Remember to always monitor account balances closely, adjust leverage ratios accordingly, and maintain a sufficient amount of capital in the trading account to avoid margin calls. With the right approach and mindset, trading with 1:100 forex brokers can be a rewarding and profitable experience.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.