Margin trading allows forex traders to control larger positions with a smaller initial investment. Choosing a broker with favourable margin requirements, competitive leverage, and strong risk management tools is crucial for maximising opportunities while minimising risks. This guide highlights the best forex brokers for trading on margin and what to consider when selecting one.

What Is Margin Trading in Forex?

Margin trading in forex involves borrowing funds from a broker to open larger positions than a trader’s actual capital. Brokers require a margin deposit (a percentage of the total trade value) as collateral.

For example:

• If a broker offers 1:100 leverage, a trader can control $100,000 with just $1,000 in margin.
• Higher leverage means lower margin requirements but increases both potential profits and risks.

Key Factors for Choosing a Forex Broker for Margin Trading

1. Margin Requirements and Leverage

Different brokers offer varying leverage ratios based on regulations:

• FCA (UK) – 1:30 for retail traders, higher for professionals.
• ASIC (Australia) – 1:30 for retail, up to 1:500 for professionals.
• CySEC (Europe) – 1:30 standard, higher for professional traders.
• CFTC/NFA (US) – 1:50 maximum leverage.

A good broker provides:

• Flexible leverage options – Allows traders to choose between conservative and aggressive leverage levels.
• Transparent margin call policies – Brokers should notify traders when margin levels drop below required thresholds.
• Adjustable margin settings – Some brokers let traders reduce leverage to manage risk better.

2. Margin Call and Stop-Out Levels

• Margin Call – A broker’s warning that account funds are insufficient to maintain open positions.
• Stop-Out Level – The point at which a broker automatically closes losing trades to prevent further losses.
• Look for brokers with reasonable margin call and stop-out levels (e.g., 50% stop-out level instead of 100%).

3. Risk Management Features

• Negative Balance Protection – Prevents traders from losing more than their initial deposit.
• Guaranteed Stop-Loss Orders (GSLOs) – Ensures trades are closed at a set price, even during volatility.
• Hedging Capabilities – Allows traders to open offsetting positions to manage exposure.

4. Trading Costs and Execution Speed

Margin trading is more effective when combined with low trading costs and fast execution. Check for:

• Tight spreads – Reduces trading costs, especially for high-leverage positions.
• Low commissions – Some brokers charge additional fees on ECN accounts.
• Fast execution speeds – Ensures orders are filled without delays or slippage.

Best Forex Brokers for Trading on Margin

1. Intertrader

• Leverage: Up to 1:500 for professionals.
• Margin Call/Stop-Out: 80%/50%.
• Risk Management: Negative balance protection, competitive spreads.

2. AvaTrade

• Leverage: Up to 1:400 (varies by jurisdiction).
• Margin Call/Stop-Out: 80%/50%.
• Risk Management: Guaranteed stop-loss orders, fixed and floating spreads.

3. TiBiGlobe

• Leverage: Variable leverage up to 1:500.
• Margin Call/Stop-Out: 80%/50%.
• Risk Management: Custom margin settings, risk warnings.

4. Vantage

• Leverage: Up to 1:500 for forex trading.
• Margin Call/Stop-Out: 80%/50%.
• Risk Management: Negative balance protection, rapid execution.

5. Markets.com

• Leverage: Up to 1:300.
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Hedging allowed, tight spreads.

6. IC Markets

• Leverage: Up to 1:500.
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Raw spreads, deep liquidity.

7. Pepperstone

• Leverage: Up to 1:500.
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Fast execution, strong risk management tools.

8. IG

• Leverage: 1:30 (retail), up to 1:200 (professional).
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Guaranteed stop-loss orders available.

9. CMC Markets

• Leverage: Up to 1:500 for professionals.
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Smart risk monitoring tools.

10. Forex.com

• Leverage: 1:50 (US), up to 1:500 (international).
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Hedging and risk management tools.

11. Admiral Markets

• Leverage: 1:30 (retail), up to 1:500 (pro).
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Advanced risk alerts and trading tools.

12. OANDA

• Leverage: Varies by region, up to 1:200.
• Margin Call/Stop-Out: 100%/50%.
• Risk Management: Customisable leverage settings.

Final Thoughts

Choosing the best forex broker for margin trading involves evaluating leverage options, margin policies, risk management features, and trading costs. Intertrader, AvaTrade, TiBiGlobe, Vantage, and Markets.com offer excellent margin trading conditions, alongside other brokers with flexible leverage and strong risk controls.

Before trading on margin, test the broker’s platform using a demo account to understand how leverage impacts risk.