Abstract：Leverage trading allows investors to borrow funds from brokers to increase their trading positions beyond what their cash balance would normally allow. By using margin, traders can control larger positions with a smaller initial investment, potentially amplifying both profits and losses. While leverage can lead to significant returns in favorable markets, it also increases risk exposure due to the potential for larger losses. Before engaging in leverage trading, traders need to manage risk effectively, use stop-loss orders, and have a thorough understanding of the market to navigate its dual-edged nature.
What is a leveraged foreign exchange broker?
What is Leverage Trading?
Leverage trading allows investors to borrow funds from brokers to increase their trading positions beyond what their cash balance would normally allow. By using margin, traders can control larger positions with a smaller initial investment, potentially amplifying both profits and losses. While leverage can lead to significant returns in favorable markets, it also increases risk exposure due to the potential for larger losses. Before engaging in leverage trading, traders need to manage risk effectively, use stop-loss orders, and have a thorough understanding of the market to navigate its dual-edged nature.
Professional Summary of Leveraged Trading: Pros and Cons
Leveraged trading offers the potential for higher returns and greater market access but comes with increased risks, including amplified losses and the potential for bankruptcy. Traders must employ disciplined risk management and avoid overtrading to mitigate these risks.
How to Choose a High-Leverage Broker?
Choosing highly leveraged brokers requires careful evaluation, not just leverage. First, assess trading conditions, such as low commissions, low spreads, and access to ECN accounts to directly enter the market. Ensure brokers provide VPS services to achieve uninterrupted trading. Verify the leverage limit in your jurisdiction because the upper limit of leverage in regions such as the EU and the United States is 1:30-1:50; offshore brokers may provide higher leverage, but the risk will also increase.
Use demo accounts or subaccounts to test brokers ' platforms and liquidity to avoid slippage and ensure smooth execution. Starting from a lower leverage, with the accumulation of experience gradually increased, avoid the maximum leverage to minimize risk. Prioritize brokers with strong risk management tools and always trade cautiously. High leverage can magnify profits, but it can also magnify losses, so choose wisely and manage risks effectively.
Top 10 Highly Leveraged Brokers in Malaysia
FBS 1:3000
FBS is a reliable broker with strict supervision, diversified assets, and a user-friendly platform. However, its limited account types and leverage restrictions in some areas may deter some traders. In general, it is a good choice for beginners and intermediate traders, especially Asian traders.
Advantages:
Regulation and security: FBS is regulated by Cyprus ( ESMA ), Belize, and Australia ( ASIC ) to ensure compliance with strict financial standards. However, international clients regulated by Belize can use higher leverage ( up to 1: 3,000 ).
Awards and reputation: FBS has won multiple awards, such as Best Forex Broker in Southeast Asia and Best Forex Trading Account, reflecting its strong industry influence, especially in Asia.
Trading platform: MT4, MT5, and proprietary mobile apps are available for fast execution ( starting from 0.01 seconds ) to meet the needs of desktop and mobile traders.
Trading platform: MT4, MT5, and proprietary mobile apps are available for fast execution ( from 0.01 seconds ) to meet the needs of desktop and mobile traders.
Asset types: providing more than 70 foreign exchange pairs, cryptocurrencies, metals, indexes, more than 500 stocks, and energy CFDs to ensure diversified trading opportunities.
Account type: provide a simple standard STP account, floating spread from 0.7 point, no commission, minimum deposit as low as $5. Muslim traders can use no-swap accounts.
Deposits/withdrawals: Most deposit methods are free, withdrawals are mostly free, and processing speed is fast ( 15-20 minutes, up to 7 working days ).
Customer support: 24/7 support via live chat, phone, callback, and messaging apps like WhatsApp and Telegram.
Disadvantages:
Leverage restrictions: EU and Australian customers face a leverage ceiling (1:30), which may limit some traders' trading strategies.
Limited Account Types: Only one major account type ( standard ) is provided, which may not be suitable for senior traders seeking more professional options.
Withdrawal fees: Although most withdrawals are free, some methods may incur costs and the processing time may be extended to 7 working days.
octa 1:1000
OctaFX is a reliable broker with competitive trading conditions, diverse platforms, and strong educational resources. However, its limited regulation and customer support hours may deter some traders. It is well-suited for both beginners and experienced traders, especially those seeking high leverage and low-cost trading.
Advantages:
Regulator and Reputation: Regulated by the FSRA of Saint Lucia, OctaFX has over 7 years of experience and has won awards such as Asia's Most Reliable Broker 2023 and South Africa and Philippines ' Best Forex Broker 2023.
Leverage and model: Provide high leverage up to 1：1000 and run under STP and ECN models to ensure fast and transparent order execution.
Trading platform: provide MT4, MT5, and its proprietary OctaTrader platform. The platform is user-friendly and can be accessed on any device.
Account Types: Three account types are available, with minimum deposits as low as $25, no swap options for Muslim traders, and spreads as low as 0.6 points.
Types of Assets: Supports foreign exchange, cryptocurrencies, commodities, and stocks, and offers real-time quotes for popular instruments.
Deposits / Withdrawals: Deposits or withdrawals are processed within one working day without any charge.
Promotion: Provide a 50% deposit bonus for deposits over $50 and provide additional trading capital.
Educational resources: The comprehensive education section covers market knowledge, risk management, technical analysis, and trading strategies.
Disadvantages:
Limited regulation: Regulated only in Saint Lucia, which may cause concern for traders seeking tighter regulation.
Customer Support: Available 24/5 (not 24/7) and lacks phone support, which may be inconvenient for some users.
Account restrictions: Only MT5 accounts can access complete trading instruments, including stocks and intraday assets.
XM 1:1000
XM Group is a reputable broker with strong regulation, global accessibility, and diverse trading options. Its low minimum deposit, negative balance protection, and multilingual support make it an excellent choice for international traders. However, EU / Australian clients may face leverage limits, and high deposit requirements for stock accounts may be a disadvantage. Overall, XM Group is a reliable and transparent broker for all levels of traders.
Advantages:
Regulatory and security: regulated by CySEC ( EU ) and ASIC ( Australia ) to ensure high standards of transparency and customer protection. Provides up to 20,000 euros of insurance under the Negative Balance Protection and Investor Compensation Fund.
Global Impact: Serving more than 1.5 million customers from more than 190 countries, the website is available in 27 languages. Show strong global influence and accessibility.
Account type: Provide four account types ( micro, standard, XM Ultra Low, and stock ) for international customers, and the minimum deposit amount for ordinary accounts is $ 5. Leverage up to 1: 1000, trading commission-free ( except stock accounts ).
Trading platform: Provide MT4 and MT5 for PC, Mac, network, and mobile devices to ensure flexibility and ease of use.
Asset diversity: Support foreign exchange, stock index, individual stocks, commodities, and cryptocurrencies ( for non-EU / Australian customers ) to meet diverse trading needs.
Customer Support: 24/5 multilingual support via live chat, phone, and email, with local numbers in Cyprus, Australia, and Greece.
Disadvantages:
Limited leverage for EU/AU clients: Due to regulatory restrictions, EU and Australian customers face stricter leverage restrictions, which may limit trading strategies.
High minimum deposit amount for a stock account: A stock account requires a minimum deposit amount of up to $ 10,000, which may discourage small investors.
No 24/7 support: Customer support is 24/5, not 24 / 7, which may cause inconvenience to some traders.
FP Markets 1:500
FP Markets is an excellent choice for traders interested in stock CFDs and diversified trading instruments, providing a wide range of platforms and competitive leverage for international customers. However, the high cost of the IRESS platform and the leverage restrictions on AU/EU customers may be drawbacks. It is most suitable for experienced traders or people with larger capital who can benefit from its advanced tools and fee reductions.
Advantages:
Regulation and reputation: Regulated by ASIC (Australia) and CySEC (EU), FP Markets is a reliable broker with a strong track record since 2005.
A wide range of tools: providing more than 10,000 stock CFDs, more than 500 ETFs, more than 60 foreign exchange pairs, indexes, bonds, metals, energy, and cryptocurrencies to meet diverse trading needs.
Trading platform: provide MT4, MT5, cTrader, and advanced IRESS platform to ensure the flexibility of all types of traders.
Leverage Options: International clients under the offshore entity can access leverage up to 1:500, while AU/EU clients are limited to 1:30.
Account type: Provide standard and ECN Raw accounts for foreign exchange transactions, with a minimum deposit of AUD 100. IRESS accounts ( Standard, Platinum, Premium ) are suitable for professional traders.
Deposit / Withdrawal: Most deposit methods are free for MT4 / MT5 accounts, and popular e-wallets such as Skrill and Neteller are free for all accounts.
Disadvantages:
High Costs for IRESS Platform: Charges 55 AUD/month for IRESS, plus 22 AUD/month for ASX data feeds, which may be expensive for retail traders.
Leverage Restrictions for AU/EU Clients: AU and EU clients are limited to 1:30 leverage, which may restrict trading strategies.
Complicated fee structure: IRESS deposit fees range from 1.6 % to 4 %, and the commission structure varies by account type.
BlackBull 1:500
BlackBull Markets is a reliable and transparent broker, particularly suited for traders seeking high leverage and pure ECN trading conditions. Its low spreads, flexible account types, and strong customer support make it a solid choice for forex and CFD traders. However, its limited asset range and high deposit requirements for institutional accounts may be drawbacks for some. It is an attractive option for traders from jurisdictions with strict leverage restrictions but may not appeal to those seeking a wider variety of trading instruments.
Advantages:
Regulation and Trust: Regulated by New Zealands FSPR, BlackBull Markets ensures a reliable and secure trading environment. Clients have access to government support in case of disputes or broker insolvency.
High leverage: Since New Zealand's regulatory approach is less stringent, it provides leverage of up to 1:500 for all customers ( including EU residents ).
Pure ECN mode: operating as a pure ECN broker, providing direct market access, low spreads ( institutional accounts start from 0.0 points ), and no need for trading desk intervention.
Account types: ECN standard, ECN Prime, and ECN institutional accounts are available to meet the needs of different trader levels, with different minimum deposits ( $$ 200,$$ 2,000 and $ 20,000, respectively ).
Trading platform: MT4 and MT5 are available, and they are popular for their wide range of custom options, automatic trading features, and user-friendly interfaces.
Customer support: 24/7 support via phone and live chat and local support in New Zealand and Malaysia. Chinese-speaking customers can also get specialized e-mail support.
Weaknesses:
Limited Asset Range: It offers only 20+ forex pairs, 6 major indices, and a few commodities (gold, silver, WTI, and Brent crude). Lacks stocks and cryptocurrency CFDs, which may deter traders seeking diversified portfolios.
High Minimum Deposit for Institutional Accounts: The ECN Institutional account requires a $20,000 minimum deposit, which is inaccessible for many retail traders.
Niche market focus: mainly for the New Zealand and Malaysia markets, which may limit its appeal to a wider global audience.
DNA Markets 1:500
DNA Markets is a reliable broker for Australian traders, offering strong regulatory protections and a diverse range of trading instruments. Its copy trading solution and simple account structure make it accessible to both beginners and professionals. However, the lack of regulation for its offshore entity and limited platform options may deter some traders. It is particularly suitable for Australian clients seeking a regulated broker and non-Australian traders looking for high leverage.
Advantages:
Regulatory and security: Regulated by ASIC in Australia, DNA Markets offers negative balance protection, client fund segregation, and strict compliance with Australian financial rules for local clients.
High Leverage for Offshore Clients: Non-Australian clients under the offshore entity can access leverage up to 1:500, catering to aggressive trading strategies.
Diversified trading tools: Provides a wide range of assets, including 580+ stocks, 120+ cryptocurrency pairs, 50+ forex pairs, commodities, and indices on MT5. MT4 users have access to fewer instruments but still enjoy a decent selection.
Copy Trading: Provides DNA Markets Signal Start, a copy trading solution that allows users to copy the strategies of experienced traders and provides performance data to make informed decisions.
Simple account structure: provide the original account and standard account, the minimum deposit as low as $ 100, suitable for beginners and professional traders.
Trading platform: supports MT4 and MT5, can be used on desktop, network, and mobile devices to ensure flexibility and accessibility.
Weaknesses:
Limited offshore regulation: Offshore entities in Saint Vincent and the Grenadines are not regulated, providing higher leverage but less customer protection.
Leverage restrictions for AU Clients: The leverage limit for Australian customers is 1:30, which may limit trading strategies.
Limited platform options: only support MT4 and MT5, lack of proprietary or alternative platforms, such as cTrader.
Unclear Customer Support Details: Although multilingual support is claimed, specific languages and support times are not disclosed, which may cause inconvenience to some users.
axi 1:500
Axi is a reliable and globally recognized broker that provides flexible trading conditions, diversified assets, and advanced platforms such as MT4 and ATP. Its Axi Select program and 24/7 multilingual support make it an ideal choice for global traders. However, leverage restrictions on EU/AU clients and high deposit requirements for Elite accounts may be drawbacks. It is particularly suitable for non-EU / Australian traders seeking high leverage and financing trading opportunities.
Advantages:
Regulation and Global Presence: Regulated in Australia (ASIC), the UK (FCA), and Dubai (DFSA), Axi is a trusted broker with a strong reputation. It also operates offshore entities in Saint Vincent and the Grenadines and Vanuatu, offering flexibility for international clients.
High Leverage for Non-EU/AU clients: Provide up to 1:500 leverage for customers outside Australia, the UK, and the EU to meet positive trading strategies.
Diversified trading instruments: a wide range of assets for non-EU / Australian clients, including currency pairs, commodities ( gold, silver, coffee, cocoa ), and cryptocurrencies ( BTC, ETH, DOGE ).
Trading platform: Support MT4 and its proprietary Axi Trading Platform ( ATP ) to ensure flexibility and access to advanced tools ( such as expert advisors for automated trading ).
Axi Select Program: Provides a $ 1 million trader program and a 90% profit share, offering attractive opportunities for skilled traders.
Account Types: Standard, Professional, and Elite Accounts are available, and most jurisdictions do not have minimum deposit requirements for standard and professional accounts ( except Australia, where the minimum deposit requirement is $ 200 ).
Customer Support: Offers 24/7 multilingual support via live chat, email, and localized phone numbers in 11 countries, covering languages like English, Chinese, Arabic, and Spanish.
Disadvantages:
Leverage Limits for EU / Australian Customers: The leverage limit for Australian, UK, and EU customers is 1:30, which may limit trading strategies.
ATP availability is limited: Proprietary ATP platforms are not available in all jurisdictions, limiting access for certain traders.
High minimum deposit amount for elite accounts: Elite accounts require a minimum deposit of $ 25,000, which retail traders may not be able to access.
Offshore entity risk: Saint Vincent and the Grenadines and Vanuatu have less offshore entity supervision and provide higher leverage but less customer protection.
FxPro 1:500
FxPro is a highly reputable broker with strong regulation, diverse trading instruments, and advanced platforms like MT4, MT5, cTrader, and FxPro Direct. Its free deposits/withdrawals, high leverage for international clients, and extensive educational resources make it a solid choice for traders worldwide. However, leverage restrictions for EU clients and the lack of social trading may be drawbacks. It is particularly suitable for experienced traders seeking a reliable and transparent broker with a wide range of tools and assets.
Advantages:
Regulation and reputation: FxPro is regulated by the UK ( FCA ), Cyprus ( CySEC ), South Africa ( FSCA ), and the Bahamas ( SCB ). It is a trusted broker with more than 100,000 global customers.
No Dealing Desk (NDD) Model: Ensure transparent and fast order execution, rated as' Best Global Forex Broker' by Capital Finance International.
Diversified trading tools: FxPro provides foreign exchange pairs, commodities, indexes, stocks, metals, energy, and cryptocurrencies ( BTC, ETH, LTC, etc. ) to customers in the UK and the Bahamas.
Multiple Trading Platforms: MT4, MT5, cTrader, and its proprietary FxPro Direct platform to meet different trading preferences. Mobile applications are suitable for iOS and Android.
Free Deposits/Withdrawals: No fees for deposits or withdrawals (after at least one trade), with a low minimum deposit of $100.
Provide high leverage for international clients: provide up to 1: 500 leverage for non-EU customers, and according to ESMA regulations, the leverage limit for EU customers is 1:30.
Educational resources: provide a large number of educational materials and free trading tools ( such as spreadsheets, economic calendars, and calculators ), increasing transparency and trust.
Customer support: 24/5 multilingual support through email, real-time chat, local phone number, and callback options.
Weaknesses:
Leverage restrictions for EU Clients: EU clients face a 1:30 leverage cap, which may limit trading strategies.
No Social Trading: It lacks social trading features, which are increasingly popular among retail traders.
Limited Cryptocurrency Access: Crypto trading is only available for clients under the UK and Bahamas entities, excluding others.
High Recommended Deposit: While the minimum deposit is $100, the broker recommends at least $1,000 for an optimal trading experience, which may deter beginners.
Eightcap 1:500
EightCap is a solid choice for traders seeking high leverage (for non-AU clients) and flexible trading conditions. Its low minimum deposit, reliable platforms (MT4/MT5), and multilingual support make it accessible to a global audience. However, the lack of cryptocurrency CFDs and weaker offshore regulation may be drawbacks. It is particularly suitable for non-Australian traders looking for higher leverage and cost-effective trading options.Advantages:
Regulation and Trust: Regulated by ASIC (Australia), SCB (Bahamas), and SFSA (Seychelles), EightCap is a reliable broker with strong oversight in Australia. Complaints can be easily filed with ASIC, enhancing trust.
High Leverage for Non-AU Clients: Offers leverage up to 1:500 for non-Australian clients through its offshore entities, catering to aggressive trading strategies.
Flexible Leverage: Allows traders to adjust leverage between 1:1 and 1:500 within the MetaTrader platform, accommodating both conservative and aggressive traders.
Low Minimum Deposit: Only 100 AUD/USD/EUR for both Standard and Raw accounts, making it accessible to traders with limited capital.
Trading Platform: Provides MT4 and MT5, ensures access to a large number of automated trading strategy libraries ( expert advisors ), and provides a smooth transition for traders switching from other brokers.
Diversified funding options: Support deposits and withdrawals through Skrill, VISA, MasterCard, bank transfers, and POLi, but do not accept cryptocurrency deposits.
Multilingual customer support: 9 languages are supported through live chat, email, and phone calls, making office locations transparent and increasing credibility.
Disadvantages:
A limited range of assets: Standard foreign exchange pairs, indices, selected stocks, and commodities are available, but cryptocurrency CFDs are no longer supported, which may discourage cryptocurrency traders.
Offshore regulatory issues: Although ASIC regulation is strict, the regulation of offshore entities ( Bahamas and Seychelles ) is weak, which may cause concern for some traders.
Leverage Restrictions for AU Clients: Australian clients face stricter leverage limits due to regulatory changes in 2021, reducing flexibility for local traders.
ICMarkets 1:500
IC Markets is a top-tier broker for traders seeking low spreads, fast execution, and high leverage (for non-AU/EU clients). Its ECN model, diverse asset range, and advanced platforms make it ideal for scalpers, algorithmic traders, and professionals. However, AU/EU clients face leverage restrictions and limited access to the global entity, which may be a drawback. Overall, IC Markets is a reliable and competitive choice for experienced traders.
Advantages:
Regulation and Reputation: Regulated by ASIC (Australia), CySEC (EU), and SFSA (Seychelles), IC Markets is a trusted broker with a strong track record since 2007. Its decision to cover negative balances during the 2015 Swiss Franc crisis enhanced its credibility.
ECN mode and low spread: ECN brokers operate as non-trader counters, providing ultra-low spread ( e.g., EUR/USD 0.1 point ) and fast execution, which is an ideal choice for scalpers and algorithm traders.
High leverage: it provides up to 1:500 leverage for customers under its Seychelles entity, but due to regulatory restrictions, AU/EU customers can only use lower leverage.
Diversified asset range: providing foreign exchange, index, commodities ( gold, oil, etc. ), bonds, and individual stock CFDs to meet a wide range of trading strategies.
Multiple Base Currencies: Supports 10 base currencies, including USD, EUR, GBP, and AUD, reducing conversion costs for international clients.
Advanced trading platform: MT4, MT5, and cTrader are provided, in which cTrader provides 1ms delay, advanced protection mechanism, and user-friendly interface.
Customer Support: Provides 24/5 support via live chat, email, and callback options, with an extensive FAQ section for self-help.
Disadvantages:
Leverage restrictions for AU/EU customers: AU and EU customers face lower leverage restrictions, which may limit the trading strategies of some traders.
Global website restrictions: Since 2023, AU / EU customers have been unable to access global websites or register with IC Markets Global, limiting their choices.
Minimum Deposit: Requires a $200 minimum deposit, which may be higher compared to some competitors.
