Leverage is the trading mechanism that investors use to increase exposure to the market by paying less than the full amount of the investment. It allows a trader to take on a better position without paying the full purchase price by using credit provided by a broker.
Choose your quick section of our 10 Best 1:400 Leverage Forex Brokers below.
Our 10 Best Handpicked Best 1:400 Leverage Forex Brokers Revealed:
In the foreign exchange markets, leverage is commonly around 1: 100, but some brokers, like those discussed here, however allow leverage of 1:400 or higher.
Pepperstone
Pepperstone is a forex broker company in Australia that was established in 2010 in Melbourne. Pepperstone is regulated in Australia and the UK and also has offices in the United States, United Kingdom, China, and Thailand.
Pepperstone offers MT4 (desktop and web), MT4 Multi-terminal, MT5, cTrader (desktop and web), and cAlgo and traders can choose between two account types, Razor or Standard, with any of these platforms.
For social copy-trading, Pepperstone offers the the MirrorTrader and RoboX platform, the ZuluTrade platform, and myFxbook for MT4, in addition to the native signals’ markets from MT4 and cTrader.
Pepperstone offers a demo account, a Mini Account, a Standard Account, an ECN Account, STP Account and Islamic Account. The minimum deposit to open the account is only AUD 200. Currencies, Commodities, Indices, Stocks, Crypto and Futures can be traded.
Forex.com
FOREX.com is a forex broker company in the United States and part of GAIN Capital Holdings.
It was established in 1999 and now operates in many countries with licenses in the regulatory hubs of the US, UK, Canada, Japan, and Australia.
Apart from a demo account, FOREX.com offers live trading accounts like a Mini Account, Standard Account, ECN Account, STP Account and an Islamic Account. Accounts can be opened by individuals, joint accounts can be owned by two or more individuals and corporate accounts are available for legal entities. $500 is needed to start trading.
FOREX.com’s flagship platform is called Advanced Trading and is available as a Web platform too.
AvaTrade
AvaTrade is a forex broker based in Dublin, Ireland. The brokerage was established in 2006 and operates also in Dublin, Paris, Milan, Sydney, Tokyo, Madrid, Mongolia, Beijing, Nigeria, Santiago and Johannesburg.
AvaTrade is regulated by authorities in Europe, the British Virgin Islands, Australia, Japan, and South Africa and provides MT4, MT5 and its own AvaTradeGO app to trade a range of instruments including Forex, stocks, commodities and indices.
AvaTrade offers a demo account that can be used for 21 days, a Standard account, Corporate account and Islamic account. The minimum deposit amounts to open an account is $100.
CedarFX
Cedar FX is a CFD broker established in 2025 in St. Vincent and the Grenadines, and offers trading in over 170 popular assets, including 35 different cryptocurrency pairs, 55 Forex pairs, 64 stocks, 11 indices, metals, and commodities. Cedar FX provides the MetaTrader 4 platform.
Cedar FX is based offshore and not regulated by any reputable regulators.
Cedar FX offers an unlimited demo account and two live account types — the 0% Commission Account and the Eco Account. The minimum deposit on Cedar FX is $10 if paid in bitcoin but $30 for other payment methods.
eToro
eToro is a forex broker in Limassol, Cypress that was established in 2006 and comprises different entities: eToro (UK) Ltd, regulated by the Financial Conduct Authority (FCA), eToro (Europe) Ltd., authorised and regulated by the Cyprus Securities Exchange Commission (CySEC), and eToro AUS Capital Pty Ltd., authorised by the Australian Securities and Investments Commission (ASIC).
eToro provides accounts for retail or professional clients and the minimum deposit required to open an account varies from $ 50 to $10 000. Demo accounts and Islamic Accounts can be opened. The broker provides its own proprietary Webtrader with which commodities, crypto assets, currencies, indices and ETFs can be traded.
FP Markets
FP Markets is an Australian forex broker established in 2005 and based Sydney, as well as in Kingstown, St. Vincent and the Grenadines. It offers contract for difference (CFD) trading in forex, indices, commodities, stocks and cryptocurrencies.
FP Markets provides a Standard, Platinum or Premier account which offer good pricing, fast execution speed, customer support and market analysis.
The FP Markets MT4 or MT5 Standard account has spreads from 1.0 pip, charges no commission and requires a minimum deposit of 100 AUD or equivalent.
Trade360
Trade360 is an online Cypriot forex broker based in Limassol, registered as MPF Global Markets Ltd and was established in 2013. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) and MiFID.
Trade360 provides CrowdTrading as platform, with which traders can trade a wide variety of assets including ETFs, CFDs, Metals and Oil.
TRADE360 offers six different trading accounts, Mini, Standard 360, Gold, Platinum, VIP and Islamic360 accounts. The minimum deposit required to open an account is $250.
Go Markets
GO Markets is an Australian forex broker based in Melbourne and established in 2006. GO Markets is licensed by the Australia Securities and Investment Commission (ASIC).
GO Markets provides MT4 and MT5 mobile trading and web-based platforms, offers spread-based and commission-based trading accounts with more than 350 tradeable CFD instruments including Forex, Shares, Indices and Commodities and Cryptocurrencies.
GO Markets provides two account types with major differences only in its spread, commissions and opening balance. The standard account is suited to new traders with its low minimum deposit of $200.
BDSwiss
BDSwiss is based in Switzerland clients can either register with its Swiss site or the European platform. BDSwiss was established in Zurich in 2012 and is regulated by the Financial Services Commission (FSC) and CYSEC in the EU, and the National Futures Association in the United States. The broker is also registered with the investor compensation fund.
BDSwiss offers the Basic RAW Account for retail traders, and the VIP Account for pro traders, which also features Islamic options for Muslim traders. The broker offers MetaTrader (MT4) and MT5 and the BDSwiss WebTrader platforms. The broker charges fees for inactive accounts at a maximum limit of EUR 78.9.
The basic account can be opened with $100 and spreads start from 1.5, with no commission charged.
How does leveraging work?
The concept of using other people’s money to enter a transaction is applied to the forex markets by means of the leverage ratio offered. Employing leverage in a forex trading strategy can however be a double-edged sword.
Leverage can be defined as the ability for a trader to open a substantially larger position than the value of his available capital. When using leverage, a trader can ‘expand’ the trading power of his money with much bigger positions. The trader actually do this by borrowing capital from his broker.
In the same way it is also possible for leverage to multiply a trader’s losses. Fortunately, the more credible trading brokerage will prevent traders from losing more than they have deposited through negative balance protection.
People with little capital are often attracted to high leverage offers because they want to become much wealthier in a shorter time. Leverage is a risk, and the higher the leverage the higher the risk.
Leverage poses benefits and risks
Here are some of the pros and cons of trading Forex with brokers that offer very high leverage.
The benefits of trading with high leverage in Forex
- High leverage gives a trader the opportunity to trade with low capital – When there is no leverage, only people with large amounts of capital would be able to make huge returns. With Forex brokers offering leverage, any trader is theoretically able to make huge returns.
- Leverage is interest-free – Although a trader in fact get these funds from a Forex broker, the loan doesn’t incur any interest. If a person wants to start trading, he can get the loan with less fear for he isn’t expected to pay any interest.
- Leveraging increases your profitability as a trader – Utilizing leverage in the trading process, increases the scope of a person’s profit. If a trader has 100 dollars, he has a chance to trade with up to 100 000 or more dollars with the assistance of leveraging and trading with bigger amounts increases the scope of a person’s profit.
The cons of trading with high leverage in Forex
- Heavier losses – Trading with leverage increases a trader’s probability of getting higher profits but at the same time, it also paves the way for heavier losses. Big profits may turn out to be smaller and a small loss turns out to be much bigger. Trading with very high leverage requires a trader to be very careful and attentive and disciplined to stop when prices move away from his predictions.
- Leverage is a constant liability – Leveraging builds an immediate liability that must be met eventually. The principal amount of leverage must be met whether you have to pay additional costs, irrespective of a transaction going up or down. The leverage must be paid before you can continue trading.
- Margin call risk – There is a constant risk that a trader may fall under the margin requirements set by a broker. If a trader falls below the threshold at any point the broker may instigate a margin call which automatically liquidates a person’s portfolio. This means that even positions that could have delivered great profits are closed early.
Conclusion
Despite the possible disadvantages associated with leveraging a trader shouldn’t be put off leveraging trade, since the pros outweigh the cons. Traders should just be aware of the pitfalls of leverage of 1:400 or higher and trade with the necessary discipline.
Top 4 Brokers
