HERE IS A LIST OF FOREX BROKERS THAT OFFER DYNAMIC LEVERAGE
Best Brokers with Dynamic Leverage
In the world of online trading, leverage is a crucial tool that traders use to maximise their market exposure. Leverage allows investors to control larger positions in the market than they would by using only their capital. In essence, the broker a trader is using lends them money to place a significantly larger trade than their capital can manage. Needless to say, this amplifies both the potential profits as well as the potential losses. As such, managing leverage effectively is key to long-term success in trading. This is where the concept of dynamic leverage comes into play.
Dynamic leverage, as opposed to fixed leverage, adjusts in real time based on specific parameters.
In recent years, this type of leverage has gained popularity among traders. In this article, we are going to review some of the best brokers with dynamic leverage. But before we jump into that, it’s crucial to get a little more understanding of how dynamic leverage works.
How Dynamic Leverage Works
As mentioned, dynamic leverage adjusts in real time during trades to provide flexibility to traders. The exact mechanics of dynamic leverage can vary depending on the broker, but the underlying concept is generally similar. Typically, a broker will set a maximum leverage ratio that traders can use. However, within this limit, traders can adjust their leverage levels based on a variety of factors. These factors may include:
- Position size - The larger the position, the lower the leverage allowed. This helps protect traders from substantial losses when controlling large trades.
- Market volatility - When markets become more volatile, brokers may reduce the leverage to minimise risk.
- Account balance - Some brokers offer higher leverage for smaller accounts but reduce leverage as the account grows.
- Asset type - Different asset classes may have varying levels of risk. For instance, forex pairs might have higher leverage than cryptocurrencies or stocks.
Several brokers provide dynamic leverage as part of their risk management toolkit. Below, we will review some of the best brokers with dynamic leverage and highlight their unique features.
Best Brokers with Dynamic Leverage
XM.com
XM is another well-established broker that offers dynamic leverage. At XM, clients have the flexibility to trade with leverage from 1:1 to 1:1000. For starters, the leverage available to traders depends on the total equity in a trader’s account. Below is a table detailing the different leverage levels on XM based on equity amount.
Additionally, cryptocurrency CFDs feature dynamic leverage, which adjusts automatically based on the trading volume of each asset. As trading activity increases, the margin requirements also rise. Further, leverage on Equity Index, Thematic Index, and Cash Energy CFDs adapts automatically. The leverage you get will be whichever is lower between your account's leverage and the leverage of the specific CFD you're trading. For more details on leverage and margin, it is important to visit the Margin and Leverage page on XM.
XM Features
XM offers over 1,000 trading instruments, including CFDs on forex, stocks, indices, cryptocurrencies, precious metals, and energies. They provide four account types: Standard, Micro, XM Ultra low, and Shares. The Standard and Micro accounts have spreads starting at 1.0 pips, while the XM Ultra Low account offers spreads starting at 0.6 pips. The Shares account charges a commission based on the specific share being traded. The platforms offered by the broker include the MetaTrader 4, MetaTrader 5, and The XM Trading Point App.
In terms of regulations, XM operates under the supervision of several financial authorities, including the CySEC in Cyprus, the ASIC in Australia, and the FSC in Belize.
Exness
Exness is one of the largest forex brokers in the market known for offering traders flexible leverage options. This broker provides both fixed and adjustable leverage based on the trading instrument. Cryptocurrencies have fixed leverage, while forex and most other instruments feature adjustable leverage.
For assets with adjustable leverage, the maximum available leverage decreases as the account balance increases. For example, if your balance exceeds $1,000 (or equivalent in another currency), you cannot use unlimited leverage. However, you can either withdraw funds or open a new account to access Unlimited Leverage again.
Additionally, forex leverage is temporarily restricted during significant news events. In the 15 minutes leading up to and the 5 minutes following major announcements, the maximum leverage for new positions is capped at 1:200 for most instruments or 1:50 for indices. An example of a major news event is the U.S. jobs report (commonly referred to as the NFP). However, there might be other rare situations where the highest leverage available is less than what you’d like to use.
Exness Features
Exness offers a wide range of trading instruments, including CFDs on forex, indices, stocks, commodities, and cryptocurrencies. They provide multiple trading platforms, including MetaTrader 4, MetaTrader 5, the Exness Trader app, and the Exness Terminal. Exness also offers some of the lowest spreads in the industry, with spreads starting at 0.2 pips for major currencies on their standard account. They have three professional accounts with even lower spreads but two of them charge a commission. For those starting with smaller amounts, Exness provides a cent account with spreads from 0.3 pips.
Finally, Exness is a well-regulated broker with licenses from several authorities. These include the FSCA in South Africa, the CMA in Kenya, the CySEC in Cyprus, and the FCA in the UK.
Tickmill
Tickmill is another broker offering dynamic leverage, providing traders with flexibility. On Tickmill, leverage adjusts in real time based on the size of your positions. For small positions, leverage increases for better use of your margin and potentially bigger returns. For larger positions, leverage decreases limiting your exposure and reducing risks. Notably, 1:1000 is the maximum actual leverage available for certain position sizes and instruments. Moreover, dynamic leverage applies to specific instruments exclusively on the Tickmill Trader and MT5 platforms. The specific instruments where dynamic leverage applies include some forex pairs, gold, and some cryptocurrencies.
Tickmill Features
Tickmill is a multi-asset broker offering a wide range of instruments, including forex, stock indices, metals, bonds, commodities, and cryptocurrencies. Traders can use platforms like MetaTrader 4, MetaTrader 5, and mobile apps. The broker provides three account types: Classic, Raw, and Tickmill Trader Raw. The Classic account has spreads starting from 1.6 pips on major pairs with no commission. The Raw account and Tickmill Trader Raw account offer spreads from 0.0 pips but charge commissions of $3 and $3.50 per lot per side, respectively.
Finally, Tickmill is well-regulated, holding licenses from authorities such as FSCA in South Africa, CySEC in Cyprus, ASIC in Australia, Labuan FSA, and FSA in Seychelles, ensuring strong oversight.
FXGT
FXGT is a dynamic leverage broker offering flexible leverage options based on account equity and market conditions. With FXGT, the maximum available leverage can be as high as 1:1000 for accounts with an equity of 5,000 and below. Larger equity accounts have a lower maximum leverage available to traders. For example, accounts with an equity larger than 100,000 have a maximum leverage of 1:50. This leverage is available for all four main account types on FXGT. However, this broker allows investors to access an even higher leverage of up to 1:5000 on the Optimus account. All a trader needs to do is simply open an Optimus trading account and fulfil the requirements of completing 5 GT Lots and 8 closed trades.
Additionally, dynamic leverage changes during key market events. 30 minutes before and 15 minutes after key economic events, the maximum leverage available for new positions on Metals and FX Pairs (excluding Swiss Franc, Turkish Lira, and Exotic pairs) is capped at 1:1000. Such key economic events include the Consumer Price Index (CPI), Non-Farm Payroll (NFP), interest rate decisions, Gross Domestic Product (GDP), and Purchasing Managers' Index (PMI).
FXGT Features
FXGT offers a wide range of trading instruments, including forex, cryptocurrencies, indices, energies, and stocks. The broker also offers two market-standard trading platforms for its traders including MetaTrader 4 and MetaTrader 5. FXGT offers several trading accounts for different trading strategies, styles, or experience levels. The account types include the Pro, ECN, Mini, and Standard+ accounts. The mini and the standard+ accounts feature spread from as low as 1.0 pips with no commission. The Pro and ECN accounts have even lower spreads but the ECN account has a commission.
Lastly, FXGT has regulations from several regulators in the market including the FSCA in South Africa. The other regulators include the FSA in Seychelles and the VFSC in Vanuatu.
BDSwiss
FBS gives South African traders access to forex currency pairs, cryptocurrencies, stocks, energies, indices, and metals. These markets are available on various trading platforms including MetaTrader 4, MetaTrader 5, and a mobile trading app.
Notably, this broker supports a plethora of payment options for traders to fund their accounts. One of the popular payment options supported by FBS is Tether. FBS accepts Tether deposits both as a TRC20 token and as an ERC20 token. These are the USDT tokens on the Tron and the Ethereum blockchains. There are no fees charged on any deposit methods on the FBS platform. Additionally, the fees for trading are fairly low starting from 0.7 pips for major currency pairs with no commission.
Finally, traders always want to know that they are investing with a broker that has regulations in the jurisdictions they operate in. Positively, FBS is regulated by the FSCA in South Africa, the FSC in Belize, the ASIC in Australia, and others. This regulatory status makes FBS one of the best forex brokers accepting Tether.
Dynamic leverage provides a flexible alternative to fixed leverage that adjusts automatically based on trade size, market volatility, and other factors. This offers traders the flexibility to manage their risk and enhance their trading strategies. While this is an important tool, it's crucial to choose a well-regulated broker that offers dynamic leverage.
Moreover, it is important to understand the dynamic leverage mechanics and practice responsible risk management alongside this strategy. As highlighted in this article, several reputable brokers excel in offering dynamic leverage, each with unique features. However, we understand that this may not be the complete list of brokers that offer dynamic leverage. Ultimately, the choice of the best broker with dynamic leverage comes down to an individual trader and their specific preferences.