Are you looking for a broker that will allow hedging so you can lower your account risk? Then, you are in the right spot. Whilst not all brokers will allow you to hedge, in this post we go through the very best brokers that allow hedging.
Just because a broker allows hedging does not make them a good broker and in this post we outline the pros and cons of each hedging broker and how you can get started.
4
Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Min.Deposit
€250
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
-
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
-
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
No
FCA
No
CySEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
€100
Spread min.
-
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
-
Regulation
No
FCA
Yes
CySEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
€100
Spread min.
1.3 pips
Leverage max
100:1
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECCFTCNFA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
1.5
EUR/USD
1.3
EUR/JPY
1.6
EUR/CHF
3.1
GBP/USD
1.9
GBP/JPY
3.6
GBP/CHF
4.2
USD/JPY
1.5
USD/CHF
2.0
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
1.3 pips
Regulation
No
FCA
No
CySEC
No
ASIC
Yes
CFTC
Yes
NFA
No
BAFIN
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Min.Deposit
€0
Spread min.
0.0 pips
Leverage max
2:1
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASIC
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
0.0
EUR/USD
0.0
EUR/JPY
0.0
EUR/CHF
0.0
GBP/USD
0.0
GBP/JPY
0.0
GBP/CHF
0.0
USD/JPY
0.0
USD/CHF
0.0
CHF/JPY
0.0
Additional Fee
Continuous rate
-
Conversión
0.0 pips
Regulation
No
FCA
No
CySEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.
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Use our side-by-side comparison table to compare Forex broker accounts, spreads and fees.
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Best Hedging Forex Brokers
Eagle FX
Eagle FX | Regulation | Min Deposit | Platform | Open an Account | |
Nil | $10 | MT4 | Trade Now |
Pros:
- High leverage.
- Small minimum deposit.
- Fast trade execution times.
- A demo account is offered.
Cons:
- Limited deposit and withdrawal options.
- No regulation.
EagleFX is another newer broker on the scene that offers small minimum deposit options along with the ability to use large leverage.
EagleFX offers super fast trading execution times along with dedicated client support that is available 24 hours a day and seven days a week.
The signup process to EagleFX is very easy and after you have signed up you will be given the free MT4 platform you can use on either your desktop or mobile devices to trade in either real or demo mode.
Your capital is at risk.
Longhorn FX
Longhorn FX | Regulation | Min Deposit | Platform | Open an Account | |
Nil | $10 | MT4 | Trade Now |
Pros:
- Fast trade execution times.
- High leverage available.
- A demo account is offered.
Cons:
- No bonuses offered.
- No regulation.
Longhorn FX is a newer broker that is located in th Saint Vincent and the Grenadines.
Longhorn offers trading on over 150 assets with leverage available up to 1:500 making it attractive to a lot of traders.
After signing up you get access to the MT4 platform that you can use to trade both in demo and ‘real’ modes.
Longhorn FX offer small spreads and fast trading execution times making it a good option for many different types of trader.
Your capital is at risk.
OctaFX
OctaFX | Regulation | Min Deposit | Platform | Open an Account | |
CySec | $5 | MT4, MT5 and cTrader | Trade Now |
Pros:
- Small minimum deposit.
- STP style broker.
- A demo account is offered.
- Wide range of platforms.
Cons:
- Lacking in tier one regulation.
- Some countries not accepted.
OctaFX is a STP style broker that has opened more than 1.5 million trading accounts.
OctaFX covers 100 countries and they have won 28 different industry. Along with their MT5 platform you also get access to MT4 and cTrader platforms.
OctaFX offer a large range of free education and market analysis and you also gain access to their copy trading platform. This allows you to copy other professional traders and make money from their winning trades.
Your capital is at risk.
FP Markets
FP Markets | Regulation | Min Deposit | Platform | Open an Account | |
FSCA, ASIC, CySec. | $100 | MT4, MT5 and IRESS | Trade Now |
Pros:
- No withdrawal or deposit fees.
- Customer support through whatsapp messages.
- A demo account is offered.
Cons:
- Inactivity fee after three months.
- They do not have a very complete educational section.
FP Markets is also an Australian based broker that is regulated by ASIC.
This broker has been around a long time as it was founded in 2005. With FP Markets you have many different deposit and withdrawal options including all the major cards and Paypal.
FP markets offer a large range of education and market analysis and along with their MT5 charts, they also offer other trading platforms to suit your individual needs including IRESS.
Your capital is at risk.
Pepperstone
Regulation | Min Deposit | Platform | Open an Account | ||
ASIC, FCA + Others | $200 | MT4, MT5 and cTrader | Trade Now |
Pros:
- It is regulated by ASIC and FCA.
- Offers various trading platforms.
- Low FX, equity, and indices fees.
- Excellent customer service.
- Free deposit and withdrawal.
Cons:
- No investor protection for non-EU traders.
- No fundamental data analysis.
Pepperstone is an Australian based broker and is widely regarded as one of the best Forex brokers in the world.
With Pepperstone you have the ability to trade on Forex, gold, indices, equities, and more. One of the biggest benefits to Pepperstone is the availability of not just MT5, but also other different trading platforms. You can choose any of the MT4, MT5, and cTrader that come on desktop, mobile and web trading.
Pepperstone offer very comprehensive education and analysis that ranges from market news, analysis, an economic calendar, guides, webinars, and more.
Another large benefit to Pepperstone is their small trading costs. Pepperstone offer very small spreads and charge low commissions per round trade.
Your capital is at risk.
What is Hedging in the Forex Market?
Hedging is normally a strategy to protect or minimize your potential downside.
Hedging is normally a short term strategy where you are concerned that price could move against your current open position and you are looking for a way to minimize your downside.
When hedging you are holding both a long and a short trade on the same Forex pair. For example; you may be holding a long trade on the EURUSD whilst at the same time also holding the same amount in a short trade on the EURUSD. This will hedge your position. You will not lose any money, but you will also not make any.
Is Hedging Legal?
Hedging is legal, however not all brokers allow it.
Also straightforward hedging cannot be carried out with brokers from the US.
Hedging is a very common strategy where a trader will look to mitigate their risk. This is common if a trader is in a longer term trade and a potentially large new announcement is coming up. They could hedge their position until this announcement has passed to protect their downside.
Do All Brokers Allow Hedging?
No, not all brokers will allow you to hedge your position and make hedging trades. The brokers listed below will allow you to open an account and make hedging trades.
#1: Eagle FX
#2: Longhorn FX
#3: Octa FX
#4: FP Markets
#5: Pepperstone
FAQ’s
What is Hedging in the Forex Market?
Hedging is normally a strategy to protect or minimize your potential downside. Hedging is normally a short term strategy where you are concerned that price could move against your current open position and you are looking for a way to minimize your downside. When hedging you are holding both a long and a short trade on the same Forex pair. For example; you may be holding a long trade on the EURUSD whilst at the same time also holding the same amount in a short trade on the EURUSD. This will hedge your position. You will not lose any money, but you will also not make any.
Is Hedging Legal?
Hedging is legal, however not all brokers allow it. Also straightforward hedging cannot be carried out with brokers from the US. Hedging is a very common strategy where a trader will look to mitigate their risk. This is common if a trader is in a longer term trade and a potentially large new announcement is coming up. They could hedge their position until this announcement has passed to protect their downside.
Do All Brokers Allow Hedging?
No, not all brokers will allow you to hedge your position and make hedging trades. The brokers listed below will allow you to open an account and make hedging trades. #1: Eagle FX #2: Longhorn FX #3: Octa FX #4: FP Markets #5: Pepperstone
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