27 Best Hedging Forex Brokers

Hedging is the opening of both a short and long position on the same asset, frequently at the same time (Direct Hedging). What this means is that a trader can be assured to try and make some gains regardless of the direction in which the market moves.  If the asset value rises, the trader will gain on the long position, and vice versa. Hedging helps a trader in reducing their risk.

We reveal the best hedging forex brokers in South Africa.

IC Markets

IC Markets was founded in Sydney, Australia in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC), as well as the Seychelles Financial Services Authority (FSA).   IC Markets offers services and features suitable for both beginner and professional traders, a ‘go to’ choice for high volume traders, scalpers and trading algos.

FP Markets

FP Markets was founded in 2005 and is regulated by the Australian Securities and Investments Commission (ASIC), and offers the segregation of client funds and top tier liquidity. FP Markets is a group of companies which includes First Prudential Markets Ltd which is authorised and regulated by the Cyprus Securities and Exchange Commission.

FP Markets offers traders the ability to trade on more than 10,000+ financial instruments covering Forex, Equities, Metals, Commodities, Indices and Cryptocurrency CFDs coupled with access to a range of accounts including the Standard Account (commission-free) and Raw Account (commission-based) for MetaTrader users, both offering ECN pricing and maximum leverage of 500:1.

Pepperstone

Pepperstone is one of the biggest Forex brokers in Australia, and the world. Pepperstone is well trusted, boasting thousands of active traders across the globe.  Pepperstone gives traders the opportunity to trade over 150 instruments, including currencies, crypto, indices, or many other markets.

Pepperstone offers two different account types, the Razor and the Standard account, and is considered to be one of the best mobile brokers in the world.  Pepperstone offers traders a wide range of online resources, trading guides, and expert webinars.   Pepperstone offers award-winning customer support services, which are available 24 hours a day, 5 days a week.

OctaFX

OctaFX operates as an STP (straight through processing), and ECN (Electronic Communication Network) Forex broker and offers traders two trading platforms to choose from.  Both platforms can be used on a desktop, laptop and mobile device.

All the normal payment channels are supported by OctaFX, including bank wire transfers, Skrill, major debit and credit cards, as well as UnionPay and the broker boasts several benefits like convenience and reliability, and with every transaction, traders will receive a free 50% bonus.

Admiral Markets

Admiral Markets group accepts clients from all over the world, excluding USA and some third-world countries and distinctive features include:

• Authorised and regulated by a government agency in several counties.
• Thousands of stocks and hundreds of ETFs available for trading.
• Tight spreads on major currency pairs.

Trading Instruments on offer includes:

AvaTrade

AvaTrade is a strictly regulated and highly reputable broker, providing services to traders across the world.  AvaTrade offers traders a wide range of tradable assets, including a relatively unique offering of forex options.

The types of accounts available from AvaTrade differs slightly depending on a trader’s location and EU clients can open a Retail or Professional account, clients in the UK and Ireland can also open a Spread Betting Account, clients outside the European Union are only offered the Standard Account.

The AvaTrade’s forex site is completely mobile-responsive and support is available via live chat, phone, and email in 14 languages.

FBS

FBS, or Financial Brokerage Services claims to have more than 700,000 clients from 120 different countries across the world. FBS was initially based out of Russia and started its FX operations in 2009.

FBS Trading Account Features – Overview:

• Minimum deposit of $1
• Maximum FBS leverage of 1:3000
• Five different types of accounts
• FBS spreads starting from 0 pip
• ECN account offered with tight spreads and a commission per lot
• Full range of payment options
• Trading instruments include 32 currencies and two metals
• MT4 & MT5 Trading Platform

There are two types of accounts available from FBS Trading for smaller traders, which include the Cent and the Micro accounts. The Cent account starts at $1 deposit, while the Micro account starts at $5 deposit.  Customer support is available in 18 different languages and a live chat feature is available.

HotForex

HotForex is a highly regulated and trustworthy ECN/STP broker which offers a wide range of tradable assets. HotForex offers traders a wide range of tools and materials, to help both novice and pro traders alike, and some very competitive bonuses and loyalty rewards.

HotForex is an international broker, with over 1,500,000 accounts globally and several types of accounts are on offer.  With over 49 currency pairs available, HotForex online broker provides traders with access to the most liquid assets in the world.

XM Group

XM Group provides traders with a large selection of assets to choose from and is regulated by some of the most respected financial bodies in the sector.

XM Group is owned by Trading Point Financial Instruments Ltd and was established in 2009 and the company is an international brand, with headquarters in Sydney, London, and Belize.

XM Markets and Products

The XM Group offers traders three specific account types to choose from including –

Live trading accounts

• For traders within the EU, the XM Group Micro Account and the XM Group Standard Account both feature an unbeatable minimum deposit of $5.
• The XM Group Zero Account is also offered to traders within the EU and carries a minimum deposit requirement of $100 and spreads start from 0 Pips.
• Australia-based traders can benefit from the XM Ultra-Low Account with a minimum deposit of $50, this account type offers spreads starting from 0.6 Pips.
• Traders located outside Australia and the EU, can take advantage of the XM Group Shares Account. This account is only available in US dollars and focuses on trading share CFDs.

Demo accounts:  XM Group offers traders forex demo accounts with starting balances of $100,000 with the opportunity to practice using each of the account types listed above.

Islamic accounts:  Clients who follow the Muslim faith can also open Islamic accounts with XM Group.

Support services are available via telephone, email, and live chat, and these are available 24 hours a day, from Monday to Friday.

FXTM

FXTM is a reliable ECN/STP broker which provides a flexible trading environment to suit any trader’s needs and offers attractive trading terms, exceptional customer service, and quality trading tools, making it a good choice for both beginners and pro traders alike.

For beginners, FXTM will provide all the resources they might need to learn to trade and great educational resources, an open demo account, and the CENT account is on offer. In the same sense, FXTM is also an excellent choice for experienced traders and they can choose from a wide array of trading instruments, trade via an STP or ECN account, and take advantage of market news and analysis from top providers.

FXTM is an online broker which was founded in 2011 in Limassol, Cyprus and has since grown to include over 800 employees in more than 10 offices across the globe.

What is the minimum deposit at FXTM?

• Cent Account: minimum deposit of $10
• Standard Account: minimum deposit of $100
• ECN Zero Account: $200
• ECN Account: $500
• FXTM Pro: $25,000

FXTM offers support via live chat, phone, email, and social media. Support is available in multiple languages, between Monday and Friday, from 8 AM to 8 PM for EU and UK customers.

Alpari International

Alpari International is a quality STP/ECN broker with a rich history and offers traders a variety of account types, advantageous trading conditions, and quality customer service, Alpari International is a good option for traders, from beginners to professionals.  Beginners will have access to a free demo account, a micro account, and social trading, experienced traders on the flip side can enjoy ECN trading.

Alpari International offers traders a variety of account types tailored to different levels of trading experience plus STP and ECN accounts.  The cost of trading with Alpari International varies based on the account a trader chooses to open.

Customer support is available in multiple languages, including English, Indonesian, Spanish, and more. You can reach them via live chat, phone, or email.

easyMarkets

easyMarkets is a multi-award-winning forex and CFD broker regulated by both CySec and ASIC.

At easyMarkets, traders can take their pick from 200 tradable assets, including currency pairs, shares, cryptos, commodities, indices, and metals. Traders can also choose from 4 different account types and enjoy relatively low minimum deposit limits.

easyMarkets offers training resources, market news, trading tools, and research and a multi-lingual customer support team is also readily available to assist via multiple communication channels.

easyMarkets offers international clients three main account types to choose from, whilst EU clients can opt for only the VIP account and for international clients, each account type is based around spreads, transaction sizes, and the amount of funds at the trader’s disposal.

The easyMarkets website is fully mobile compatible and free educational materials for novice traders, including over 15 training videos, 10 downloadable eBooks and a glossary of trading terminologies is on offer.

CityIndex

CityIndex group accepts clients from all over the world, excluding USA, Canada, Afghanistan, Angola, Belarus, Belgium, Burundi, Central African Republic, Chad, Congo, Cote D’Ivoire, Cuba, Equatorial Guinea, Eritrea, Guinea, France, Guinea-Bissau, Haiti, Hong Kong, Iran, Iraq, Israel, North Korea, Lebanon, Liberia, Libya, Myanmar, New Zealand, Nigeria, Sierra Leone, Somalia, Sudan, Syria, Turkmenistan, Uzbekistan, Venezuela, Western Sahara, Yemen, Zimbabwe.

Distinctive features of CityIndex include:

• CityIndex UK offers Spread Betting on currency pairs, shares and commodities.
• Authorised and regulated by a government agency in several counties.
• Thousands of stocks available for trading.
• Tight spreads on major currency pairs.

Trading Instruments on Offer from CityIndex includes:

Oanda

Oanda refused to provide the information regarding which clients (from which countries) are accepted and not by each of their entity and distinctive features include:

• Wide range of helpful tools facilitating the trading process.
• Authorised and regulated by a government agency in several counties.

Trading Instruments on offer from Oanda include:

FXPro

FXPro is an online broker founded which was founded in 2006 and offers Forex, Share Dealing, Spot Indices, Futures, Spot Metals and Spot Energies trading.  FXPro is a global broker and has a head office located in the UK.

FXPro provide traders with access to top-tier liquidity and advanced trade execution with no dealing desk intervention and a starting account will need a minimum deposit of $100.

What can be traded with FXPro?

• Over 250 instruments
• Over 70 currency pairs

FXPro is one of the few brokers in the market who offers both of the MetaTrader platforms; MT4 and MT5 plus the cTrader platform and mobile apps for Android and iOS.

FXPro Trading benefits include:

• Allows scalping
• Allows hedging
• Low min deposit
• Offers Negative Balance Protection

With FXPro, the minimum and maximum trade requirements vary depending on the trader and the instrument and the broker offers support in a very wide range of languages including Arabic, Chinese, English, French, German, Hungarian, Indonesian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, and Vietnamese.

Markets.com

Markets.com is an online broker which founded in 2008 and offers Forex, CFDs and Spread Bets. Spread Bets are only available to UK customers trading and Markets.com is a global broker with a head office situated in Cyprus.

New traders will need to make a minimum deposit of $100 and a demo account is available for those who wants to try before they ‘buy’ in.

Traders can trade in a wide variety of instruments and currency pairs

• Over 100 instruments
• Over 80 currency pairs

Markets.com offers both of the MetaTrader platforms; MT4 and MT5. plus, mobile apps for Android and iOS.

Markets.com Trading benefits:

• Allows scalping
• Allows hedging
• Low min deposit
• Guaranteed stop loss
• Offers Negative Balance Protection

Markets.com Trading Accounts on Offer include:

• Demo account
• Mini account
• Standard account
• Islamic account

Markets.com support a wide range of languages including Arabic, Chinese, Dutch, English, French, German, Italian, Japanese, Norwegian, Polish, Romanian, Russian, Spanish, and Turkish.

XTB

XTB is an online broker which was founded in 2002 and offers Forex, CFDs, and Cryptocurrency trading.  XTB is a global broker with their head office situated in Poland.

XTB have won numerous industry awards over the 18 years that they have been operating as a financial broker and traders can choose to trade in a wide variety of instruments over 1,500 instruments and over 50 currency pairs in fact.  XTB offer traders the popular MT4 forex trading platform alongside the award-winning Xstation5.

XTB also offers traders mobile apps for Android and iOS and customer support in a wide range of languages including English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish.

IG

IG offers traders a wide-ranging list of tradeable products, outstanding trading and research tools, industry-leading education, and competitive rates.

Is IG Safe?

IG is considered low-risk, and is a publicly traded company which operates a regulated bank, and is authorised by six tier-1 regulators (high trust), three tier-2 regulators (average trust), and one tier-3 regulator (low trust). IG is authorised by the following tier-1 regulators.

Commissions & Fees

IG provides traders competitive pricing across the board, regardless of the product chosen to trade.

• Average spreads:For small and standard size contracts, minimum spreads on the EUR/USD were 0.6 pips, average spreads were 0.73 pips, for the end of November, 2019.

• Active traders:For volume traders who qualify as professionals under EU rules, IG offers even more competitive rates on its commission-based offering, Forex Direct.

• Execution method:Forex Direct streams from interbank liquidity providers where IG acts as an agency broker – not adding on any additional spread. IG adds a commission to each trade made.

Platforms & Tools

IG provides an outstanding offer of trading platforms and tools.

Flagship platform: IG’s main trading platform is its proprietary web-based platform with usability at the centre of the experience.

Charting: The default charts within the platform offers traders advanced functionality including the ability to add an alert on a specific indicator, with a total of 28 studies available to select.

Additional platforms:  IG offers the MetaTrader4 (MT4) platform and a L2 Dealer platform where Forex Direct and Direct Market Access (DMA) are available for share trading.

ProRealTime charts:   Via the ProRealTime premium charting more advanced charting with nearly 100 indicators is provided.

Customer Service

• Average Connection Time:<1 minute
• Average Net Promoter Score:7 / 10
• Average Professionalism Score:2 / 10
• Overall Score:17 / 10
• Ranking:8^th in 23 brokers

IG provides traders a large selection of quality market research from both in-house and third-party providers plus, a mobile app that comes packed with plenty of features.

Mobile app features include:

• Tools:Alerts, sentiment readings, an economic calendar, watch lists, detailed market information and a well-designed layout.
• Charting:The charting function is loaded with 28 technical indicators and drawing tools.
• Research:News content and signals from AutoChartist.
• MetaTrader:MetaTrader is also available for traders who prefer the MT4 mobile app.

IG offers traders powerful research tools, competitive spreads and over 17,000 tradeable assets.

BDSwiss

BDSwiss is well regulated 4 types of accounts. These accounts come with a minimum deposit of $100.

BDSwiss offers both full demo and Islamic accounts are available and traders can fund their account through wire transfer deposits as well as through credit card and deposits which are fee free in most cases. Trading with the broker takes place through MT4, MT5, and WebTrader.

Forex.com

Forex.com is an online broker which was founded in 1999 and offers Forex, Indices, Commodities, Equities and Cryptocurrencies trading with a minimum deposit of $500 needed to make a start.

Traders can trade in:

• Over 4500 instruments
• Over 80 currency pairs

Forex.com Trading benefits include:

• Allows scalping
• Allows hedging
• Offers STP
• Guaranteed stop loss
• Offers Negative Balance Protection

Forex.com Trading Accounts on offer include:

• Demo account
• Mini account
• Standard account
• ECN account
• STP account
• Islamic account

With Forex.com, the minimum and maximum trade requirements vary depending on the trader and the instrument and all accounts support a wide range of languages including English, Chinese, Arabic to name but a few.

HYCM

HYCM is an online broker which was founded in 1977 and offers Forex and CFDs trading on the popular MT4 forex trading platform plus mobile apps for Android and iOS.

Traders starting off with HYCM will need to make a minimum deposit of at least $100 and have the choice to sign up for a demo account perfect for various levels of traders, experienced or novice.

a wide variety of instruments and currency pairs are available for trade:

• Over 100 instruments
• Over 40 currency pairs

HYCM Trading benefits:

• Allows scalping
• Allows hedging
• Low min deposit

HYCM Trading Accounts on offer include Demo, Micro, Mini, Standard and Islamic and the minimum and maximum trade requirements will vary depending on the trader and the instrument.

InstaForex

InstaForex is a MetaTrader only broker.

InstaForex user likes and dislikes:

Is Instaforex Safe?

Instaforex is considered high-risk and is not publicly traded and does not operate a bank. Instaforex is authorised by zero tier-1 regulators (high trust), one tier-2 regulator (average trust), and one tier-3 regulator (low trust).

Commissions & Fees

InstaForex offers users two main account types:

• Standard (ECN / non-dealing desk)
• Eurica (dealing desk).

Both above mentioned accounts have a 1 USD minimum deposit.

Research & Education

InstaForex provides a range of offerings which includes InstaForex’s daily market analysis blogs and technical analysis posts via MT5. Interviews, weekly reviews, and educational videos are also available.

Education primarily includes videos, a glossary, and a variety of text articles based on forex trading.

Platforms & Tools

InstaForex is a MetaTrader4-only broker – offering the MT4 platform suite from MetaQuotes Software Corporation, developer of the widely popular MT4 and MT5 platforms for desktop, mobile, and web.

• InstaForex features only the default functionality
• No other third-party platforms or plugins provided to traders

iOS and Android versions of the MetaTrader 4 mobile app come standard and are both available for download from the Apple iTunes store and Android Playstore, respectively.

Exness

The Exness Group was founded in 2008, and offers traders access to more than 120 financial instruments to trade across.  Trading platforms available from Exness includes MetaTrader 4, MetaTrader 5, mobile trading platforms and the MT4 WebTerminal.

Exness offers over 105 different instruments to trade, including over 103 currency pairs.

Exness support a wide range of languages including English, Russian, Chinese, Urdu, Malay, Indonesian, Hindi, Arabic, Bengali, Farsi, Tamil, Vietnamese, Thai, Korean, and Spanish.

Swissquote

Swissquote is a Swiss investment bank which was established in 1996 and has two main trading arms: a Swiss unit for trading stocks, funds, options and futures and a company in the UK for CFDs and forex.

Swissquote is recommended for affluent investors who value safety and are ok with higher fees.

Tickmill

Tickmill has a 100% NDD forex platform, meaning that there is no conflict of interest with their clients. Tickmills’ MT4 has full support for EA’s, multiple charts, news, limit orders & much more.

Tickmills’ MT4 is supported on Windows, Mac, Android, iOS, as well as webtrader and the platform has 62 currency pairs.

Key Features include:

• Supports: Metatrader for desktop, web & mobile
• Minimum deposit: $100 (~₦36,000)
• Leverage: 1:500
• Trading Instruments: Forex, CFDs on Stock Indices, precious metals

Axitrader

Axitrader is an online broker which was founded in 2007 and offers Forex, CFDs and Social Trading, is a global broker and has a head office situated in Australia with no minimum deposit needed to get started plus a demo account is on offer.

Axitrader is able to accommodate various levels of traders and offers the MT4 forex trading platform plus mobile apps for Android and iOS, respectively.

Axitrader Trading benefits include:

• Allows scalping
• Allows hedging
• Offers STP
• Low min deposit

Axitrader Trading Accounts on Offer include Demo, Micro, Mini, Standard, ECN, STP and Islamic and support is offered in a wide range of languages including English, Chinese, Spanish, German, Japanese, Russian, Romanian, and Arabic.

FXCM

FXCM caters to multiple trader types including High-volume traders, algorithmic traders, and traders who appreciate robust trading tools and quality market research.

Is FXCM Safe?

FXCM is considered low-risk. FXCM’s parent company is publicly-traded, does not operate a bank, and is authorised by three tier-1 regulators (high trust), two tier-2 regulators (average trust), and zero tier-3 regulators (low trust).

Commissions & Fees

FXCM stands out the most in regards to its Active Trader account offering, where low commission rates and average spreads provide competitive pricing for high volume traders.  Active Trader accounts are available for clients who deposit at least $25,000, which comes with a lower commission rate of $25 per million and access to premium research.  Standard account holders are only charged the prevailing spreads, Active Trader accounts are charged a commission per trade, in addition to reduced prevailing spreads.

Platforms & Tools

FXCM offers a growing range of trading platforms and tools including:

• Trading Station desktop:FXCM’s flagship trading platform, caters well to forex traders of all skill levels.
• Trading Station web:The web version of Trading Station features includes news, videos, research, market data signals, and links to external resources.
• Ninja Trader: Features numerous trading tools, including automated trading capabilities.
• Algorithmic Trading:The FXCM App store provides various add-ons, technical indicators, and automated trading robots.

Customer Service

• Average Connection Time:<1 minute
• Average Net Promoter Score:3 / 10
• Average Professionalism Score:2 / 10
• Overall Score:77 / 10
• Ranking:3rd in 22 brokers

FXCM provides a wide variety of market research and related resources. A combination of Trading Station and MetaTrader4 (MT4), FXCM delivers a reliable, feature-rich mobile offering for forex traders.

In conclusion

There are multiple advantages to hedging which included when used correctly, can protect traders against losses and provide traders an opportunity to expand their trading skills set.  But, as with any trading strategy, hedging has the possibility to lead to losses and should not be considered as a 100% safe method of trading and has its costs and all potential benefits must be taken into account before justifying the cost of a hedge. Traders must remember that the goal of a hedge is not to make money but to protect from losses.

Frequently Asked Questions

Is hedging allowed in forex?

In the US, the concept of hediging is regarded as illegal. But not all the forms of hedging are seen as illegal. However, the buying and selling of the same currency at the same or different strike prices are regarded as illegal.

Why did the NFA ban hedging?

The short answer is because hedging generates significant potential for abuse.

Which forex brokers allow hedging?

Here is a list of the 27 Best Forex Brokers where hedging is allowed.

How do you hedge USD?

Start by borrowing the foreign currency in an amount that is equivalent to the present value of the receivable. Then convert that foreign currency into a domestic currency at the spot exchange rate. Proceed by placing the domestic currency on a deposit at the prevailing interest rate. Make the payment when the foreign currency deposit matures.

Does hedging cost money?

The cost of hedging cannot be avoided. See it as the price you pay to avoid uncertainty.