| Updated: January 15, 2025Leverage is a trading tool that has gained significant popularity among forex enthusiasts in recent years. It presents traders with the opportunity to control large positions with a smaller capital amount, amplifying the potential profits.
A common leverage ratio in the foreign exchange market is 1:30, seeing as it is enforced as a limit across multiple jurisdictions with the goal of mitigating the risks inherent to leveraged trading. If you are planning on giving margin trading a try by using leverage of 1:30, we invite you to continue reading and learn more about the benefits and potential drawbacks of this ratio.
Below you can find a list with the best Forex brokers with leverage 1:30:
Top 9 Forex Brokers with 1:30 leverage
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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
-
IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
-
XM Group
- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading Instruments- Forex
- Stocks
- Indices
- Commodities
- Thematic Indices
-
AvaTrade
- Minimum deposits from $100
- Licensed by 11 regulatory bodies
- Retail forex leverage of up to 1:400
Trading Instruments- Forex
- Major stock indices
- Cryptocurrencies
- Commodities
- Bonds
- Individual Shares
- ETFs
-
Admirals
- Trade using MetaTrader 4 and 5, as well as Admirals' specialized plugins for additional functionality.
- Access forex, shares, indices, commodities, ETFs, bonds, and cryptocurrency CFDs.
- Admirals is overseen by top-tier regulatory bodies: FCA, ASIC, CySEC, and EFSA, assuring transparency and customer security.
Trading Instruments- CFDs on Forex
- Indices
- Stocks
- Commodities
- Bonds
- ETFs
- Cryptocurrencies
-
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
-
Swissquote
- Clients can hold multiple currencies in one account - CHF, EUR, USD, GBP and earn up to 5% interest rate.
- Beyond trading, Swissquote offers banking services, including savings accounts and mortgages
- Traders can use advanced trading platforms, such as MT4, MT5 and a proprietary mobile app for maximum flexibility.
Trading Instruments- Forex
- Commodities
- Stocks
- Crypto
- ETFs
- Bonds
- CFDs
- Options
- Futures
- Mutual Funds
- Indices
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| 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 |
| IG | 0.86 av.spread | $0 |
| XM Group | 0.8 | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
| AvaTrade | 0.9 | $0 |
| Admirals | 0.1 | $3 per lot |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| Swissquote | 1.7 |
|
| Plus500 | 1.2 | $0 |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| IG | |
$0 |
| XM Group |  |
$5 |
| AvaTrade | |
$100 |
| Admirals | |
$100 ($1 for Invest MT5 Account) |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Swissquote | |
Standard Account: $1,000; Premium Account: $10,000; Prime Account: $50,000 |
| Plus500 | |
$100 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| IG | |
1:30 |
| XM Group | |
1:30 |
| AvaTrade | |
1:30 |
| Admirals | |
1:30 |
| BlackBull Markets | |
1:500 |
| Swissquote | |
1:30 (Europe), 1:100 (International), 1:50 (Middle East), 1:20 (Singapore) |
| Plus500 | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| IG | |
80+ |
| XM Group | |
50+ |
| AvaTrade | |
50+ |
| Admirals | |
82 |
| BlackBull Markets | |
70+ |
| Swissquote | |
80+ |
| Plus500 | |
60+ |
Comprehensive Comparison of Forex Brokers with 1:30 Leverage
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.86 av.spread |
|
|
 |
$5 |
|
0.8 |
|
|
 |
$100 |
|
0.9 |
|
|
 |
$100 ($1 for Invest MT5 Account) |
|
0.1 |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
Standard Account: $1,000; Premium Account: $10,000; Prime Account: $50,000 |
|
1.7 |
|
|
 |
$100 |
|
1.2 |
What is Leverage?
Leverage is a financial concept that, as established, allows forex aficionados to control larger positions with a smaller amount of capital, essentially increasing the gains they stand to receive should the market move in their favor. There are two major components that are tied to leverage.
-
The Margin
The margin is at the core of leveraged trading, and it is the amount of capital required by a broker to open and maintain a leveraged position. As traders are essentially borrowing money from the broker to control a larger position when they trade with leverage, the margin acts as collateral for this loan. Leverage ensures that the trader has sufficient funds to cover any adverse market movements. Thus, if the market moves against the investor, the broker may close the position to prevent further losses and recoup their losses from the margin.
-
The Leverage Ratio
Leverage ratios refer to the amount of leverage offered by a broker. These ratios are expressed as a ratio of the investor’s and the broker’s respective capitals that make up the total money involved in the position, typically represented as a 1:xx ratio. A 1:30 ratio there means that for every 1 currency unit of the trader’s capital, the broker provides 30 units. Leverage ratios can vary significantly between forex brokers, with some offering as little as 1:10 on major pairs and others allowing clients to use leverage of 1:500 or above.
Higher leverage ratios increase the potential gains but also increase the amount of funds a trader stands to lose should things go south. Investors should carefully consider their risk tolerance and trading strategy before selecting a leverage ratio, as it can have a significant impact on their overall trading experience.
In the following table, you can see several examples of how margin percentages translate to their respective leverage ratios. Essentially, the lower the margin, the higher the leverage ratio:
| Margin Requirement | Leverage Ratio |
|---|---|
| 50% | 1:2 |
| 5% | 1:20 |
| 3.33% | 1:30 |
| 0.20% | 1:500 |
Risks Tied to Leverage
Trading forex with 1:30 leverage can be a double-edged sword. While the ratio is seen as a powerful tool offering the potential for significant gains, it may also expose traders to substantial risks.
Margin Calls and Account Depletion Risks
One of the primary risks associated with trading forex with leverage of 1:30 is the possibility of margin calls. When a trader’s account balance falls below the required margin to maintain an open position, the broker will issue a margin call, requiring the trader to deposit additional funds or close the position. If the trader fails to meet the margin call, the broker may close the position, resulting in significant losses.
Another risk is the potential for rapid account depletion. When trading with high leverage, even small market movements can quickly deplete a trader’s account balance, leaving them with insufficient funds to cover subsequent losses. This can lead to a vicious cycle of margin calls, ultimately resulting in a significant loss of capital.
Emotional Trading
There are several ways that leverage can have an adverse effect on a trader’s decision-making. The inflated positions have led to many traders becoming prone to trading impulsively, feeling compelled to hold onto a losing position in the hopes of recouping their losses. The impulse to resort to over-trading is another potential issue, as traders may feel pressure to maintain a high level of activity to justify the costs associated with trading with leverage.
Finally, trading with leverage can also lead to a false sense of security, as traders may feel that they have more control over their trades than they actually do. This can lead to complacency, causing traders to take on more risk than they can afford.
In conclusion, trading forex with 1:30 leverage can be a high-risk activity, offering the potential for significant gains but also exposing traders to the risk of substantial losses. Forex enthusiasts must carefully consider their risk tolerance and trading strategy before using this leverage ratio and be prepared to manage their risk exposure to avoid significant financial losses.
Regulators Mandating 1:30 Leverage Limits
Given how risky leveraged trading can be, regulators across the globe have taken steps to protect retail investors by imposing strict leverage limits on trading instruments, especially Contracts for Difference (CFDs) on forex and other financial derivatives. One such limit is the 1:30 leverage ratio, which restricts the amount of borrowed capital that retail investors can use to trade CFDs. Notable regulators that enforce the 1:30 limit include:
- The Financial Conduct Authority: The Financial Conduct Authority (FCA) is the financial regulatory body responsible for overseeing the financial services industry in the United Kingdom. FCA-regulated brokers are subject to regular audits and must adhere to strict rules, including limiting retail leverage to 1:30.
- The Australian Securities and Investments Commission: ASIC’s primary goal is to protect consumers and maintain market integrity by ensuring that financial institutions operate fairly and transparently. The regulator was established in 1998, and it enforced the 1:30 cap on forex CFDs in 2021, affecting major forex pairs in particular.
- The European Securities and Markets Authority: Known as ESMA, this entity sets and enforces rules for the financial markets in Europe, including those related to trading. The regulators of European countries impose ESMA regulations, including the 1:30 retail leverage cap implemented in 2018 via the Markets in Financial Instruments Directive II.
Of course, there are regulators that have forex leverage limits that differ from the usual 1:30. In Japan, for example, local traders can use leverage of up to 1:25. There are even supervisory bodies that do not limit the leverage retail traders can utilize, with the Financial Services Authority of Seychelles being one such entity.
How to Manage Leverage Risks
While trading with 1:30 leverage can be a risky endeavor depending on one’s capital, there are risk-management strategies and other factors forex traders can consider using to protect themselves. You can check out several of them below:
- Negative Balance Protection: This is a tool that will prevent your balance from going below $0. Keep in mind that most brokers offer negative balance protection only if they are demanded to by a regulator. Thus, sticking to regulated brokers is crucial.
- Stay informed and disciplined: Continuously educate yourself on market conditions, and stick to your trading plan to avoid impulsive decisions.
- Demo Accounts: Beginners are advised to start out with a demo account. This eliminates risks while still allowing for hands-on practice.
- Stop-Loss Orders: Traders can set a stop-loss order to automatically close a position when it reaches a predetermined price, limiting potential losses.
- Diversification: Diversifying one’s trades across different instruments to reduce dependence on a single asset is recommended. An individual can choose to trade various currency pairs or try out other markets.
By implementing these strategies, one can effectively manage leverage risks and minimize potential losses while still benefiting from the potential gains of trading with 1:30 leverage.
Pros and Cons of Using Brokers With 1:30 Leverage Limits
Trading with leverage of 1:30 requires a deep understanding of risk management and market conditions. Traders should carefully weigh the pros and cons before they begin:
- Increased Potential Gains: Leverage allows traders to control large positions, leading to a potential for higher returns.
- Flexibility: Leverage enables traders to take advantage of market opportunities more quickly, as small movements can result in major profits.
- Reduced Capital Requirements: Trading with leverage requires less initial capital to take on large positions, making it more accessible to new traders.
- No Access to Higher Leverage: If you trade with a broker that has capped leveraged forex trading at 1:30, you will not be able to use higher leverage.
- Potential for Inflated Losses: Trading with high leverage increases the risk of margin calls, which can result in the forced closure of positions. Moreover, small market movements can have a significant negative impact on a trade due to leverage.
- Emotional Trading: Leverage can lead to irrational trading decisions fueled by emotions, as traders may feel like they have to hold onto losing positions or take on excessive risk.
FAQs
Can I use leverage in other markets besides forex?
Yes, leverage is available in other markets, such as commodities and indices. Keep in mind that the leverage cap might not be 1:30, however. According to European regulations, for instance, commodities and gold cannot be traded with leverage of over 1:10. Additionally, crypto traders are limited to 1:2 leverage.
How can I use higher leverage if I reside in Europe or another jurisdiction with a 1:30 cap?
You have two options, the first being to become a professional trader. This way, you will typically gain access to 1:500 leverage. Another option is to go with an offshore broker that accepts clients from your region, but this is not recommended as it can make trading even riskier if you do not choose a reputable broker.
I cannot find the leverage limits of a broker I want to try, what should I do?
Most brokers allow non-registered users to contact customer support. In this case, you can reach out to a representative of the support team directly and inquire about the leverage limits they impose.
Can I lose money if I trade with 1:30 leverage by using a demo account?
No, demo accounts provide you with virtual funds that will not affect your actual balance. Trading with a demo account is completely risk-free.
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.