Best High Leverage Forex Brokers in Australia 2024

Claire Maumo is our financial writer and leads our editorial team in delivering engaging, informative, and easy-to-understand content. With a background in journalism and finance and a passion for financial education, she ensures our content is well-received by every trader.

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Leverage/margin trading gives traders an opportunity to open larger positions with small capital. While you can earn huge profits from applying leverage, understand that it carries inherent risks that could leave you with massive losses. In Australia, ASIC-regulated forex brokers offer retail traders a leverage limit of up to 30:1. However, professional traders can enjoy higher limits depending on a broker.

If you have been in search of a high-leverage forex broker in Australia 2024, we are here for you. Below, you will find our top recommendations based on thorough market research. And if you are new to leverage trading, we will understand what it is, the risks involved, and more.

List of the Best High Leverage Forex Brokers

  • Pepperstone – Overall Best High Leverage Forex Broker in Australia
  • Plus500* – Best High Leverage CFD Forex Broker in Australia
  • FP Markets – Top High Leverage Forex Broker For Professional Aussie Traders
  • AvaTrade – Beginner-Friendly High Leverage Forex Broker in Australia
  • FxPro – Cheapest High Leverage Forex Broker in Australia

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

In This Guide

Australian High Leverage Brokers: Comparison Table

Leverage is highly risky in trading, and to help our readers find the best brokers, we conduct extensive research. We start by sampling as many high-leverage forex brokers as possible. Then, we conduct multiple tests and comparisons based on various elements, including security, asset offerings, support services, demo accounts, and more.

Our research proceeds to Google Play, the App Store, and Trustpilot, where we analyse hundreds of user comments and ratings. By combining our findings from user testimonials with our test results, we come up with unbiased recommendations, as shared in this guide.

Take a look at our comparison table below, where we share the features that make our best Australian high-leverage forex brokers stand out.

Best High Leverage Forex Broker AustraliaLicenceSupport ServiceSoftwarePayment MethodDemo Account
PepperstoneFCA, ASIC, DFSA, CySEC, CMA, SCB, BaFin, SEC24/7TradingView, MT4, MT5, cTrader, Pepperstone Trading Platform, Social tradingVisa, Mastercard, Bank transfer, Flutterwave, Skrill, PayPalYes
Plus500*

82% of retail investor accounts lose money when trading CFDs with this provider.

FCA, CySEC, ASIC, FSCA, MAS, FSA24/7Plus500 Webtrader, Plus500 ProBank Wire Transfer, Credit/debit cards, Paypal, SkrillYes
FP MarketsCySEC, ASIC, SEBI24/7MT4, MT5, cTrader, Iress, Credit/debit cards, Bank transfer, PayPal, Neteller, Skrill, PayTrust FasaPayYes
AvaTradeFCA, CySEC, ASIC, CIRO, FSCA24/5MT4, MT5, AvaSocial, DupliTrade, AvaOptions, AvaTradeGOBank transfers, Skrill, WebMoney, Neteller, debit/credit cardsYes
FxProCySEC, FSCA, FCA, ASIC24/5cTrader, WebTrader, MT4, MT5Bank transfer, broker to broker, Skrill, Neteller, PayPal, Visa, Maestro, MastercardYes

Brokers Short Overview

Leverage trading Australia can maximise your profitability, but you must approach the activity cautiously to avoid incurring massive losses. Start by having a budget and choosing a broker that fits it. Plus, your forex broker must list your preferred currency pairs and additional securities to enable you to efficiently diversify your portfolio.

We understand that comparing hundreds of high-leverage forex brokers Australia can be overwhelming. For this reason, we decided to conduct the research ourselves and share below brief overviews of the applicable fees and asset offerings at our best high-leverage forex brokers in Australia.

Fees

Best High Leverage Forex Broker AustraliaMinimum Deposit RequirementCommission/SpreadsDeposits/WithdrawalsInactivity Fee
PepperstoneA$0From 0.0 pipsFreeNone
Plus500*A$100From 0.0 pipsFreeA$10 monthly
FP MarketsA$100From 0.0 pipsFreeNone
AvaTradeA$100From 0.9 pipsFreeA$50 quarterly
FxProA$100From 0.0 pipsFree$10 monthly

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Assets

Best High Leverage Forex Broker AustraliaStocksForexCryptocurrenciesCommoditiesIndicesETFsOptions
PepperstoneYesYesYesYesYesYesNo
Plus500* (CFDs)YesYesYesYesYesYesYes
FP MarketsYesYesYesYesYesYesNo
AvaTradeYesYesYesYesYesYesYes
FxProYesYesYesYesYesYesNo

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Our Expert Opinion about High Leverage Brokers in AU

As mentioned earlier, we tested hundreds of high-leverage forex brokers Australia to create this list of recommendations. To help you make informed decisions, we share below our mini reviews of the brokers based on our hands-on experience. Remember, every broker has unique needs for every trader. Therefore, take your time and conduct additional research if you can before choosing a forex broker and making a commitment.

1. Pepperstone – Overall Best High Leverage Forex Broker in Australia

Among the high-leverage forex brokers we tested in Australia, Pepperstone stood out as our overall best. Besides having a user-friendly and customisable platform, we discovered that the broker has a fast trade execution speed. This allows users to enter positions without worrying about missing out on short-term positions due to sudden market movements. Retail forex traders are eligible to leverage limits up to 30:1, while professionals get up to 500:1 on the Pepperstone Pro account.

While you will enjoy a high leverage limit at Pepperstone, we do not like the number of assets offered here. Only 1250 assets were available, and 60+ currency pairs were among them. Moreover, you can only trade the securities as CFDs, limiting traders looking to buy and take ownership of underlying assets. The good news is that there is a vast selection of learning and research materials on the broker’s cTrader, MT4, Mt5, and TradingView platforms. Plus, there is no minimum deposit requirement and spreads to incur start at 0.0 pips.

Pepperstone

✔24/7 support service
✔User-friendly and navigable platform

trustpilor logo
2,817 User Reviews
google
4,480 User Reviews
apple
1 User Reviews
financeraters logo
Our Rating
Total Rating:
7,298 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • User-friendly and customisable trading platform
  • High leverage limits of up to 500:1 for professional traders
  • Low spreads starting from 0.0 pips on major currency pairs
  • Over 60 currency pairs to explore

Cons

  • Limited asset offerings compared to its peers
  • Only CFD trading supported for Aussie traders

We find Pepperstone broker to be one of the brokers with transparent fee structures. There are no hidden charges, so what you see displayed on its platform is what you will incur. This makes it easier for you to budget without worrying about overspending.

Let’s discover below some of the trading and non-trading charges at Pepperstone.

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
Minimum Deposit Requirement From $0, depending on your jurisdiction
Commission From $0.02 on US-listed shares
Spreads From 0.0 pips on its Razor Account
Deposits and Withdrawals Free
Inactivity None
Overnight Funding Varies based on global market conditions
Copy Trading Free

Note that Pepperstone charges both spreads and commissions. While spreads are charged on all accounts, commissions are only imposed on the Razor Account.

At Pepperstone, we discovered over 1,200 CFD and spread betting assets. The securities are in different classes, including shares, commodities, forex, indices, ETFs, and cryptocurrencies. Unfortunately, some assets like options are missing.

As we previously mentioned, there are two types of trading accounts, namely Razor and Standard, with which you can explore these securities. We also noticed that Pepperstone supports leverage trading on its featured securities. Retail traders will enjoy limits up to 30:1, while professionals are eligible for limits up to 400:1. This allows you to manage larger trades with a small capital, thus maximizing your chances of earning huge profits.

That being said, let’s break down the number of asset offerings at Pepperstone.

Asset Class Number Offered
Forex 97+ currency pairs
Shares 1000+
Indices 23+
Commodities 40+
Cryptocurrencies 30+
ETFs 48+

Disclaimer: Spread betting and CFD trading have the application of leverage attached to them. Therefore, while the activity can magnify your returns, losses are inevitable. To avoid incurring massive losses with CFD trading, understand how it works plus all the risks involved. Plus, only risk funds you are comfortable losing, considering that over 76% of retail traders lose money in this activity.

2. Plus500 – Best High Leverage CFD Forex Broker in Australia

We are impressed with Plus500’s modern design interface, which is easy to navigate. We consider it best for CFD traders in Australia because of its zero commissions on trades. Users only get to incur spreads from 0.0 pips on major currency pairs, which, in our opinion, are among the industry’s lowest. Moreover, the broker has a low minimum deposit requirement of A$100, and all transactions are free of charge.

Overall, there are over 2,000 CFD assets, including 60+ currency pairs, shares, indices, ETFs, and more. The leverage limit is also favourable, at up to 30:1 for retail traders and 300:1 for professionals. The high leverage limit is only available on its Plus500 Pro platform, which users can enjoy once they meet its requirements. There are also additional features on the Plus500 Pro account, including advanced research tools, lower fees, and more. For beginners, this broker has a virtually funded demo account with which you can get started.

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Plus500

✔Easy-to-use trading platform
✔No hidden charges

Visit site
82% of retail investor accounts lose money when trading CFDs with this provider.
Read review
trustpilor logo
14,120 User Reviews
google
102,000 User Reviews
apple
1,600 User Reviews
financeraters logo
Our Rating
Total Rating:
117,720 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Low forex trading fees from 0.0 pips
  • Free deposits and withdrawals
  • Quality learning tools and market analysis tools
  • Favourable leverage limits for all types of traders

Cons

  • No third-party platforms like the MT4
  • Its inactivity fee of $10 monthly kicks in after only three months

Many traders prioritize brokers they can afford. Since fees vary with a broker, we decided to go through Plus500’s fee structure. Here are some of the trading and non-trading charges to expect when you commit to this broker.

Trading and Non-Trading Charges Details
Account Opening $0
Minimum Deposit Requirement $100
Commission $0
Spreads From 0.0 pips on major currency pairs
Deposits and Withdrawals $0
Inactivity $10 monthly
Currency Conversion Up to 0.7%
Overnight Funding Varies based on trade size

From our analysis, we discovered that the Plus500 trading platform lists over 2,800 assets. These assets are spread across various classes, including forex, shares, indices, commodities, cryptos, options, and ETFs. For most regions, Plus500 supports CFD trading across the featured assets. Real stock trading is available on the Plus500 Invest platform, while futures trading is only available for US citizens on the Plus500 Futures platform.

Let’s break down the number of Plus500 product selections.

Asset Class Number Offered
Forex 60+ currency pairs
Shares 1900+
Indices 29+ global stock indices
Commodities 24+
Cryptocurrencies 19+
ETFs 96+

Note that options trading at Plus500 is offered on a few stock CFDs and stock index CFDs. Thematic indices like the Cannabis Index are also available for traders.

Disclaimer: CFD trading is complex and highly risky, considering the application of leverage attached. We have witnessed over 76% of retail traders lose their money in CFD trading. It may not be a suitable activity for you. Therefore, ensure you understand how CFD trading works and the risks involved. 

3. FP Markets – Top High Leverage Forex Broker For Professional Aussie Traders

Advanced traders seeking a reliable, high-leverage forex broker should try FP Markets. While all our recommended brokers here are fit for professionals, FP Markets shines with its numerous advanced resources for market analysis. Besides, we discovered various forex account types for every trader’s needs, including standard and raw accounts. Forex trading is also supported on multiple platforms, including MT4, MT5, TradingView, and cTrader. Australian forex traders can get started with as little as A$100.

We like that FP Markets has a high leverage limit of 500:1 for professional Aussie traders. Forex trading exposes you to over 70 currency pairs and an additional 10,000+ securities for portfolio diversification. These include shares, commodities, cryptos, ETFs, and more. Other features we enjoyed at FP Markets are micro lot trading, Expert Advisors, mobile trading, low spreads from 0.0 pips, and more

FP Markets

✔Low minimum deposit requirement
✔Hosts numerous learning and market analysis tools

trustpilor logo
7,164 User Reviews
google
0 User Reviews
apple
2 User Reviews
financeraters logo
Our Rating
Total Rating:
7,166 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Lists over 70 currency pairs to trade at low spreads
  • Powerful trading platform, including cTrader, TradingView, MT4, and MT5
  • Fast trade execution speed on desktop and mobile devices
  • Advanced market research tools and EA for automated trading
  • Low minimum deposit requirement of a $100

Cons

  • Supports only CFD instruments
  • Its Iress account is more focused on share trading than forex

We reviewed the applicable FP Markets fees, and like that the broker has a transparent structure. This allows users to efficiently plan for their activities without worrying about incurring additional costs. There are no hidden charges and no price manipulation with this broker.

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
Minimum Deposit Requirement From $50, depending on your jurisdiction
Commission From 0%
Spreads From 0.0 pips on major currency pairs
Deposits and Withdrawals Free deposits. Withdrawal fees apply based on the payment method used
Inactivity $0
Overnight Funding Varies based on global market conditions
Copy Trading Free

There are more than 10,000 CFD instruments at FP Markets across various asset classes. These include forex, shares, commodities, cryptos, and more. The best element about exploring these securities is that you have access to multiple platforms to choose from. Whether you prefer the MT4, MT5, cTrader, or TradingView, FP Markets has it all for you. You are guaranteed quality resources to maximize your potential.

When it comes to leverage applications, FP Markets has favorable limits for all types of traders. Retail traders can get up to 30:1, while professionals get 500:1. Moreover, we discovered multiple account types to suit every trader’s needs.

Here is a breakdown of the number of assets you will trade at FP Markets Standard, Raw, and Iress accounts.

Asset Class Number Offered
Forex 70+ currency pairs
Shares 10000+
Indices 19+
Commodities 12+
Cryptocurrencies 12+
ETFs 46+
Bonds 2+
Futures 7+

Disclaimer: CFD trading is risky, especially with the application of leverage attached. While many traders earn good profits from it, it can leave you with massive losses should a trade work out against you. Therefore, start by understanding CFD trading and all the risks involved before venturing into such securities. Remember, over 76% of retail traders lose money in CFD trading.

4. AvaTrade – Beginner-Friendly High Leverage Forex Broker in Australia

We find AvaTrade to be a beginner-friendly, high-leverage forex broker due to its vast selection of learning materials. We discovered guides, articles, recorded videos and more, which we believe will help newbies discover their potential in the currency market. Moreover, many users on Google Play, the App Store, and Trustpilot find the broker’s app user-friendly. Its ability to support social and copy trading on its AvaSocial, DupliTrade, and ZuluTrade platforms will also help newbies learn the ropes through socialising while increasing their profitability.

With its robust features and educational resources, AvaTrade stands out as an excellent forex trading app for those looking to navigate the market effectively.

When it comes to leverage limits, retail forex traders will enjoy up to 30:1 while professionals up to 400:1. Forex trading will expose you to over 50 currency pairs, which you get to trade with spreads from 0.9 pips. There are also an additional 1250+ securities for portfolio diversification. Most importantly, AvaTrade offers a virtually funded demo account for newbies and multiple platforms with advanced resources.

AvaTrade

✔Regulated by FCA
✔The platform supports algorithmic trading

trustpilor logo
8,869 User Reviews
google
10,200 User Reviews
apple
25 User Reviews
financeraters logo
Our Rating
Total Rating:
19,094 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Low minimum deposit requirement of A$100
  • Quality trading resources on its MT4, MT5, WebTrader, AvaSocial, and Automated trading platforms
  • A user-friendly and modern-design platform
  • A highly-rated app for iOS and Android mobile devices

Cons

  • It has an A$50 quarterly inactivity fee that kicks in after only three months
  • Only forex and CFD instruments supported for Australian traders

Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.

That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.

Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:

Fees and Charges Amount
Spreads From 0.9 pips
Administration fee $100
Inactivity fee $50
Overnight premium Yes

The AvaTrade trading platform’s users have access to over 1,250 financial instruments, from forex pairs and indices to commodities, options, ETFs, and more. Below is an overview of some of this service provider’s product offerings:

  • Forex: As an AvaTrade user, you can trade diverse popular currency pairs, like EUR/USD, CAD/JPY, and USD/TRY. You can also boost potential returns with leverage of up to 400:1.
  • Commodities: From crude oil to silver, corn, and platinum, countless commodities are available on the Ava trading platform. They have competitive spreads and juicy leverages for individuals who want to access larger positions with small capital.
  • Cryptocurrencies: With an AvaTrade account, you can trade crypto CFDs like BTC/USD, Ripple, and Bitcoin Gold. These assets have reasonable spreads starting from 0.10% over-market.
  • Stocks: Over 90 stocks are accessible on the AvaTrade platform, including popular products like Groupon, Apple, and Microsoft. You can trade such instruments and enjoy reasonable spreads starting from 0.13%.
  • ETFs: If you want to trade ETFs, AvaTrade has you covered. You’ll find numerous outstanding assets, such as the MSCI EAFE Index Fund, S&P 500 VIX Short-Term Futures ETN-Series B, and Energy Select Sector SPDR.
  • Indices: After opening an AvaTrade account, you’ll get uncapped access to US500, UK100, CHINA A50. The broker also allows index traders to enhance potential returns with up to 100:1.
  • Options: AvaTrade’s AvaOptions trading platform allows users to trade options. It’s also equipped with 13 strategies, including call spread, put spread, and straddle.

5. FxPro – Cheapest High Leverage Forex Broker in Australia

Having thoroughly compared multiple high-leverage brokers in Australia, FxPro is a top choice for low-budget traders. With only A$100 as the minimum deposit, you can access its platform and enjoy quality trading tools. We like that the broker lists over 70 currency pairs, which comes with low spreads from 0.0 pips. Micro lot trading is also supported, enabling you to explore the currency market with a small capital.

Another feature we like at FxPro is its support for multiple trading accounts and platforms. Depending on your skill level, you will choose between the Standard, Raw+, and Elite accounts, all with unique features. Platform offerings include MT4, MT5, cTrader, and WebTrader. While the leverage limits at this broker are pro-powered, they go up to 250:1. You can open positions with trade sizes from 0.01 and enjoy fast trade execution speed.

FxPro

✔24/7 customer support
✔Thousands of financial instruments

trustpilor logo
508 User Reviews
google
2,550 User Reviews
apple
71 User Reviews
financeraters logo
Our Rating
Total Rating:
3,129 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Low minimum deposit requirement
  • Hosts multiple trading platforms, including the MT4, which is known to be a preferred option to forex traders
  • Lists over 70 currency pairs
  • Hosts extensive selection of market research and learning materials

Cons

  • Supports only CFD instruments
  • It has a $10 monthly inactivity fee that kicks in after only six months

Admittedly, FxPro isn’t the cheapest broker today. The company requires first-time users to make a $100 initial deposit to use a standard account, which is reasonable but can’t be termed as the lowest threshold. Also, Raw+ account holders must make an initial deposit of $500 or more. Additionally, anyone interested in the company’s Elite account offering must be ready to meet the $30k minimum deposit mandate. Please review and understand FxPro minimum deposit requirements before registering a live account.

When it comes to spreads and commissions, FxPro has juicy offerings. Everyone who opts for Raw+ or Elite gets the opportunity to enjoy sharp spreads starting from 0 pips. The numbers are higher for Standard Account owners, with the lowest spreads starting from 1.2 pips.

We have some good news for those worried about transaction fees inflating costs. FxPro doesn’t charge additional deposit or withdrawal fees. However, you may have to cover charges inflicted by financial institutions, depending on your preferred funding method.
Here’s an overview of the FxPro broker fees and charges:

Fees and Charges Amount
Minimum deposit $100
Spreads From 0 pips
Transaction fees $0
Currency conversion fee Yes

Over 2,100 assets are available on the FxPro broker platform. They range from forex pairs and energy to indices, metals, and futures. Check if this service provider supports your favorite assets before signing Up. Here’s an overview of the supported product list to help you out:

  • Forex: 70+ tradable pairs are available on the FxPro trading platform, ranging from CAD/JPY and EUR/GBP to GBP/CHF, GBP/CAD, and USD/JPY. Every category, from major to minor and exotic FX pairs, is available here.
  • Shares: With FxPro, you can trade CFDs on global shares like ALCOA CORP, Western Union Co, and Zoetis Inc. You can start trading shares from different regions, including the EU, UK, and the US.
  • Metals: If you want to trade CFDs on precious metals, FxPro is the place to be. Different products like aluminum, lead, and copper are offered here.
  • Futures: FxPro clients have access to CFD futures on agricultural commodities like wheat, energy products like natural gas, and indices. Popular products range from Cocoa U24 and Coffee Z24 to Gas U24.
  • Energy: CFDs on spot energy products like natural gas, Brent oil, and WTI are offered to FxPro users. You can trade these instruments or use them to diversify your portfolio.
  • Indices: After signing up with FxPro, you’ll get access to CFDs on myriad indices, from the Nikkei 225 Index to the Dow Jones Industrial Average and spot indices like the Australia 200 Spot Index and the China H Shares Spot Index.
  • Crypto: FxPro offers you the opportunity to trade CFDs on Bitcoin, Doge, Ether, and many other crypto assets. If you are a cryptocurrency enthusiast and want to profit from cryptos without owning the underlying crypto assets, consider trading cryptocurrency CFDs with this terrific broker.

Leverage Trading in Australia

Leverage Trading in Australia

Leverage trading is whereby traders borrow capital from brokers to open larger positions. In forex, you will gain large exposure to the currency market and earn huge profits should a trade work out in your favour. However, understand that controlling a larger trade size with a small capital carries risks. Should a trade disappoint, you will be left with massive losses and debts to pay.

Overall, Australian traders focus on the positives while applying leverage in forex trading. The Australian Securities and Investment Commission (ASIC) has managed to control the amount of leverage retail traders should use. Today, retail forex traders can trade with limits up to 30:1 to avoid being exposed to unsuitability high risk. It controls the maximum amount you can lose while holding your broker accountable. However, professional traders are allowed to take further risks with higher limits, which vary with brokers.

Before applying leverage in forex trade, ensure you conduct extensive research and are confident in your skills. Plus, consider applying risk management controls like stop-loss orders to avoid incurring massive losses should a trade go against your strategy.

What is High Leverage Trading?

What is High Leverage Trading?

High-leverage trading means borrowing a higher amount from your broker to open a position. While Australian brokers have a standard leverage limit for retail traders, the limit varies when it comes to those set for professionals. For instance, a broker can have a high leverage limit of 500:1 for professional traders. This means that with only A$100, you can open a larger position worth up to A$50,000 (100 x 500).

Do not apply high leverage in a trade if you are not familiar with how it works and the risks involved. Even with lower leverage limits for retail traders, we advise you to start small as you gauge your skill level and risk tolerance. You can utilise brokers’ demo accounts to avoid spending more than you had planned for. Most importantly, do not trade with leverage based on emotions. We have witnessed many traders lose money because of it, so remain patient and disciplined.

How to Choose the Best High Leverage Forex Broker in AU

There are many Australian forex brokers with attractive leverage limits for traders. However, how do you make a suitable choice among hundreds of options? Well, you first need to conduct extensive market research and identify as many high-leverage forex brokers as possible. Then, compare them by considering the elements below:

Security/Regulatory Status
Availability of Assets
Leverage Limit
Charges
Platform Performance
Support Service
User Recommendations

Not all forex brokers in Australia are legitimate. Some are there looking for innocent traders to scam them off their hard-earned money. To ensure your funds will remain safe, confirm whether a high-leverage forex broker is licensed and regulated by the Australian Securities and Investment Commission (ASIC). ASIC ensures that brokers secure your funds in segregated accounts, and you get to trade under the best conditions. Such brokers are also highly encrypted, ensuring your personal data do not fall into the wrong hands.

To enjoy high leverage with a forex broker in Australia, confirm whether it lists your preferred currency pairs. These can be major, minor, exotic, and more. Plus, prioritise brokers with additional asset classes, including stocks, indices, ETFs, options, and more. Multiple asset offerings make it easier for you to explore new markets and identify where your strength lies for portfolio diversification.

Check the leverage limit a broker offers and ensure it aligns with your preference and risk tolerance. Remember, while the limit for retail traders in Australia is constant, the margin varies when it comes to professional traders. For instance, our recommended high-leverage forex brokers above have a leverage limit of up to 30:1 for retail forex traders.

While you may prioritise the leverage limit when choosing a forex broker in Australia, do not forget to confirm trading and non-trading charges. Obviously, you will have a budget before engaging in forex trading to avoid overspending. This means that the broker you select must align with this budget. Confirm all trading and non-trading charges, including minimum deposit requirements, transaction costs, inactivity fees, overnight charges, and more.

The best high-leverage forex broker in Australia must have a user-friendly and modern design platform. Plus, it must have a fast trade execution speed to ensure you maximise all arising potentially profitable opportunities. If you are a beginner, your broker’s platform must list adequate learning materials and a demo account. This way, you can employ continuous learning while gauging your skill level in a risk-free environment. Market research materials are also a priority to help you conduct your technical and fundamental analysis.

A high-leverage forex broker with a responsive and reliable support service is worth committing to. Note that even professional traders have their bad days, but with reliable support, they easily manoeuvre the market. Therefore, contact a broker’s support team and gauge their response rate. How they handle questions and concerns is also paramount, as you will be able to understand their reliability. Availability shouldn’t affect your decision as long as they operate within your trading schedule and can be contacted via convenient channels like phone, email, or live chat.

We encourage you to also visit Google Play, the App Store, and Trustpilot to analyse as many user comments and ratings as possible. This way, you will get enough insights about a broker’s strengths and weaknesses and make informed choices. The broker you select should have many positive reviews that outweigh the negatives.

Risks to Trade with High Leverage Forex Broker

High leverage in forex trading carries inherent risks that you must be aware of. This way, you can approach leverage trading Australia with caution and maximise your chances of earning profits.

Let’s explore below some of the most common risks of trading with a high-leverage forex broker. 

  1. Cash management risk

Many Australian forex traders have incurred losses simply because they opened a leveraged position with no plan. While your broker offers you an opportunity to maximise your returns, do not go all in. Only apply leverage when you are confident of earning profits from the activity. Manage your capital effectively to avoid digging deep into your nest egg. 

  1. Margin calls

Margin calls in forex trading occur when your broker requires you to deposit additional funds to cover losses below the margin call level. It usually occurs when the market moves against your strategy and your position falls below a certain level. Should you fail to make a deposit as required, your broker will be forced to close the position, thus leaving you with massive losses.

  1. Market volatility

The currency market is volatile and currency prices tend to frequently change based on various economic conditions. If you apply leverage in forex trading, sudden price changes can affect your position and leave you with losses. The losses can be massive if you do not apply risk management controls like stop-loss orders.

  1. Emotional trading

Being over-confident, excited or even disappointed can lead you to open a forex position with high leverage. Your goal will be to maximise returns, forgetting that losses can also occur. Trading in such a state can cloud your judgment, leaving you with huge debts to pay.

Pros & Cons of High Leverage Trading

High-leverage trading can be a blessing if you approach it strategically. However, it also comes with disadvantages, which you must note before applying it in your activities. Some of the pros and cons of high-leverage trading include:

ProsCons
By controlling a large position with a small capital, leverage trading can bring about good profits.If not properly managed, high-leverage trading can leave you with massive losses.
High-leverage trading exposes you to multiple trading opportunities, making it easier for you to diversify your portfolio.You are exposed to margin calls, which, if not met, can make you lose your entire investment and capital.
You can open a position anytime you identify an opportunity, even with a small capital. Requires extensive research and skills to increase the chances of success. 

Conclusion

From our guide above, it is evident that leverage trading Australia is like a double-edged sword that should be approached strategically. You do not have to fear leverage once you learn how to manage it. Remember, exploring the financial market is risky, and even without leverage, losses are inevitable. Our advice to you will be to start small or utilise the broker’s demo account before transitioning to live trading. For professionals seeking high-leverage forex brokers, our recommendations above should be of help. And since a highly leveraged trade can quickly deplete your account, consider applying risk management controls like stop loss orders. They help mitigate massive losses in case a trade goes against you.

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Claire Maumo

Claire Maumo has experience in investment banking, strategic consultancy, and journalism. She has a Bachelor’s degree in Business Management and a Master’s in finance. She has a knack for making complex concepts easy to understand. Her primary focus is on crypto, blockchain, and financial instruments. Follow her for expert insights on trading and investment.

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