Forex Brokers with 1:500 Leverage
- Written By thinkforexbrokers
- Updated:
New to forex and not sure which broker to trust? We’ve been there too. That’s why we tested a bunch of brokers ourselves — both with demo accounts and real money — to figure out which ones are actually beginner-friendly and regulated. The list below includes the ones that stood out. These brokers make it easier for new traders to get started without feeling overwhelmed.
Fusion Markets
74-89% of retails CFD accounts lose money
FP Markets
74-89% of retails CFD accounts lose money
Eightcap
74-89% of retails CFD accounts lose money
BlackBull Markets
74-89% of retails CFD accounts lose money
Axi
74-89% of retails CFD accounts lose money
BlackBull Markets
74-89% of retails CFD accounts lose money
FBS
74-89% of retails CFD accounts lose money
easyMarkets
74-89% of retails CFD accounts lose money
IC Markets
74-89% of retails CFD accounts lose money
XTB
74-89% of retails CFD accounts lose money
Top 11 Brokers for Beginner Traders
1. Fusion Markets
Aussie retail traders can access leverage of up to 1:30. The rates increase to 1:500 for clients registering via the Vanuatu and Seychelles-licensed entities of Fusion Market. This maximum cap applies only to less risky forex and precious metal trades. CFDs involving equity indices and cryptocurrencies can be leveraged at ratios of 1:100 and 1:10, respectively. We should warn you only clients registered under the ASIC-regulated entity are eligible for negative balance protection.
2. FP Markets
Spreads on forex pairs are extremely competitive, with traders having the opportunity to further reduce the trading cost by opening a Raw Account that offers spreads on major pairs as low as 0.0 pips, with a discount roundturn commission of $6 per standard lot. Leverage is also available to FP Markets customers, with the FSCA and FSA-regulated entities offering leverage of 1:500 on major currency pairs. While ASIC and CySEC regulations impose a mandatory max leverage of 1:30 on forex, Aussie and European professional traders will also gain access to higher leverage when trading currency pairs.
3.XTB
Clients can trade over 2,300 leveraged CFDs with competitive spreads starting from 0.1 pips for forex majors. Customers accessing the platform from specific locations can leverage their trades at ratios as high as 1:500. The broker has no minimum deposit requirements, allowing clients to trade in micro lots. On the downside, no negative balance protection is available to CFD traders registering through XTB’s Belize-regulated entity.
4. Pepperstone
Pepperstone is a no-dealing-desk broker known for its lightning-fast execution, competitive pricing, and access to over 1,200 markets. With raw spreads starting from zero pips and deep liquidity from multiple providers, traders can count on accurate pricing and real value for every trade.
Whether you’re just starting out or already have some experience, Pepperstone makes it easy to get up to speed. They offer beginner-friendly resources like forex courses, step-by-step guides, videos, and live webinars. If you’re new to MT4, you’ll find helpful walkthroughs right on their site. And for those wanting to practice first, the demo account gives you $50,000 in virtual funds to explore the platform and test your strategies risk-free.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% 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.
5. eToro
Launched in 2007, eToro has become one of the top platforms for copy trading, especially for those just getting started. The broker is big on transparency, strong customer support, and strict regulation — holding licenses in Cyprus, Australia, the UK, and the US. With over 5,000 instruments available, including 40+ forex pairs, eToro’s easy-to-use platform gives traders plenty to explore.
If you’re new to trading, eToro has you covered. They offer tons of helpful content like market analysis articles, live courses, and free educational videos to help you get up to speed. You can also open a free demo account with $100,000 in virtual funds to practice and build confidence before trading with real money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% 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.
6. XTB
XTB is a well-established multi-asset broker, regulated by top authorities including the FCA, CySEC, KNF, and DFSA. Its parent company is publicly traded on the Warsaw Stock Exchange, which adds an extra layer of trust and transparency. With over 5,000 tradable instruments — from forex to derivatives — XTB has built a solid reputation in the trading world.
For beginners, XTB offers plenty of support. You’ll find free ebooks, helpful guides, and a library of educational articles to get started. They also provide daily market insights, economic calendars, and real-time updates on trending assets. If you’re just looking to practice first, opening a demo account takes only a few minutes and comes with $100,000 in virtual funds to explore the platform risk-free.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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.
7. Plus500
Plus500 sets itself apart with low trading fees, strong regulation, and a real focus on educating its clients. The broker is licensed by top-tier authorities like CySEC, MAS, FCA, and ASIC, giving traders peace of mind. With a lineup of more than 2,800 CFD instruments and tight spreads, there’s plenty of flexibility for all types of traders.
Beginners will find a lot of value in the Plus500 Trading Academy. It’s packed with helpful resources like ebooks, how-to videos, webinars, and detailed beginner guides. On top of that, the platform offers market insights, sentiment data, price alerts, and economic calendars to help traders stay informed and make smarter decisions.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
8. Global Prime
Global Prime has been serving traders for over a decade and now welcomes clients from more than 120 countries. Known for its competitive spreads and ultra-low round-turn commissions, the broker offers access to over 150 financial instruments — making it a solid choice for those looking for cost-effective trading.
New traders will appreciate the flexibility: there’s no minimum deposit required, so you can start with whatever amount you’re comfortable with. If you’d rather test the waters first, setting up a demo account takes less than 30 seconds. Global Prime also supports beginners with helpful articles covering forex basics, common pitfalls to avoid, and practical trading strategies.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
9. Axi
Axi delivers solid trading conditions, fast execution, and access to over 260 financial instruments. It’s a great option for beginners, especially since there’s no minimum deposit required. The standard account is designed for entry-level traders, with spreads starting from 0.9 pips. Retail clients also get up to 1:30 leverage and built-in protection against negative balances.
To help you grow as a trader, Axi offers a wide range of learning tools — including how-to videos, free ebooks, and analytics to sharpen your strategy. The Axi Academy is packed with courses covering forex, stocks, indices, commodities, and crypto. If you want to test your knowledge, you can also take part in short quizzes designed to reinforce what you’ve learned.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
10. Tickmill
Tickmill is a globally recognized broker, licensed by six major regulators, including the FCA, DFSA, and CySEC. Traders get access to over 600 markets with raw spreads starting from zero pips. With execution speeds averaging just 0.2 seconds and low slippage, Tickmill is built for precision and efficiency.
New traders are well looked after too. Tickmill offers negative balance protection and keeps client funds in segregated accounts for added security. Beginners can take advantage of a variety of learning resources — from infographics and ebooks to webinars and expert-written articles. The broker also hosts occasional in-person seminars and workshops led by professional traders, giving newcomers a chance to learn in a more hands-on environment.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with Tickmill Europe Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
11. ActivTrades
With over 60 industry awards under its belt, ActivTrades has built a strong reputation as a trusted broker offering low-cost access to more than 1,000 markets — including forex, stocks, ETFs, indices, bonds, commodities, and cryptocurrencies. Most assets are available as CFDs or futures, and the broker is fully licensed across five major jurisdictions, including the FCA, SCB, and CMVM. ActivTrades also serves clients in over 170 countries worldwide.
For beginners, ActivTrades offers a solid starting point. There’s no minimum deposit in most regions, so you can begin with whatever amount you’re comfortable with. The broker provides a wide range of educational tools — from platform tutorials and user manuals to in-depth webinars and research resources. Webinars are available in several languages, including German, Spanish, French, Italian, and Portuguese, making learning more accessible. Traders looking for a deeper dive can also attend in-person seminars led by market experts. Whether you’re on ActivTrader, MT4, or MT5, you’ll find the support you need to get up and running.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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.
Best Forex Brokers for Beginners Ranked by Trustpilot Score
Forex Broker | Trustpilot Reviews | |
1. FP Markets | 9,041 | |
46,512 | ||
3. IC Markets | 3,904 | |
6,214 | ||
5.FBS | 1,737 | |
3,152 | ||
7.Eightcap | 3,052 | |
8. XTB | 2,060 | |
9. FXTM | 1,030 | |
How Leverage Works in Forex Trading
Leverage enables retail traders to gain greater market exposure with smaller deposits as it involves using capital borrowed from your broker to invest in currencies, shares, or other securities. It can be a useful tool in the hands of seasoned traders, allowing them to collect higher returns on their investments even from nominal price fluctuations. That said, it should be noted that high leverage magnifies both gains and losses, with larger positions sometimes leading to larger dips in one’s trading balance.
Forex traders commonly resort to using leverage when speculating on future price movements with contracts for difference (CFDs). Leverage is like a multiplier representing the money traders can borrow from their brokers per every currency unit they invest. Here is an example to show you how leverage works in practice.
A person wishes to open a position of one mini lot for the EUR/USD pair, and the current price is 1.1150. A mini lot consists of ten thousand currency units, which means our hypothetical trader would need to invest $11,150 (10,000 x 1.1150) without using leverage. However, this person has a limited budget at their disposal and decides to take advantage of 1:500 leverage.
This leverage ratio would enable the trader to take up a five-figure position in EUR/USD with an initial capital of around $22.30 (1/500 of $11,150). The trader would essentially borrow 500 currency units from their broker for every unit of their capital (500 x 22.30). If they close the position at a higher price of 1.1200, for example, their original investment of $22.30 would bring in $50 in net profits (0.0050 x 10,000 = $50) with 1:500 leverage.
Margin Trading Explained
Traders must meet specific minimum margin requirements before a broker allows them to open leveraged positions. Forex brokers use margin as collateral when offering leverage to their customers. The margin serves as a security deposit and ensures brokers can cover the potential losses resulting from their customers’ actions. Another way to put it is to say the margin represents the minimum amount you must have in your balance to maintain a leveraged position.
Minimum margin requirements are shown as percentages and vary based on the leverage ratios one trades with. Traders need less margin when using higher leverage, and vice versa. You must cover 1/500 of your position’s overall size when using 1:500 leverage, corresponding to a minimum margin of 0.20%.
To proceed with the example from earlier, a trader should have at least $22.30 (0.20%) available in their balance to control a EUR/USD position of $11,150 with 1:500 leverage. This collateral amount remains locked in traders’ balance until they close their positions or the broker liquidates them due to rapidly mounting losses. The remaining balance is a “free” margin and is available for opening new leveraged positions.
Leverage Ratios and Corresponding Margin Requirements
As previously explained, minimum margin requirements fluctuate depending on leverage ratios and position size. Higher leverage rates require less margin and vice versa. The base currency of your live account also bears consideration when you trade forex pairs on margin. Here are a couple of examples demonstrating how to calculate the minimum balance needed to trade a mini lot (10,000 units) of EUR/USD with 1:500 leverage and 0.20% margin.
Example #1
When the quote currency in the forex pair coincides with your base account currency, you can calculate your minimum collateral by multiplying your position size by the current exchange rate and the margin percentage. Let’s suppose a person wants to purchase one mini lot of EUR/USD at 1.1250 with a 0.20% margin and 1:500 leverage. If so, they must deposit no less than $22.50 (10,000 x 1.1250 x 0.20%) in their live balance.
Example #2
The calculations are slightly different when the base currency of the forex pair coincides with the base currency of your live trading account. The formula is even simpler in this case as traders must only multiply their position size by the margin percentage corresponding to the leverage ratio they intend to use. If someone purchases a mini lot of USD/CAD at 1.3650 with 1:500 leverage and 0.20% margin, they should have at least $20 (10,000 x 0.20%) in their account to open this position.
Using Leverage Multiplier to Calculate Minimum Margin Percentage
Most brokers have built-in calculators on their websites, greatly simplifying this process for retail clients averse to doing calculations. As for minimum margin percentages, you can easily work them out by dividing 100 by the leverage multiplier you plan on using. Leverage of 1:500 is associated with a minimum margin percentage of 0.20% (100 / 500), 1:30 leverage requires 3.33% (100 / 30) margin, and so on.
Common Leverage Ratios and Their Min. Margin Percentages
Forex Broker | Trustpilot Reviews | |
1. FP Markets | 9,041 | |
46,512 | ||
3. IC Markets | 3,904 | |
6,214 | ||
5.FBS | 1,737 | |
3,152 | ||
7.Eightcap | 3,052 | |
8. XTB | 2,060 | |
9. FXTM | 1,030 | |
Risks Associated with Using Higher Leverage
One of the biggest issues resulting from using leverage is that it has the potential to magnify both your profits and losses. Using unreasonably high leverage could lead to considerable losses even in the event of less dramatic price fluctuations. Also, it is not unheard of for retail traders to lose their entire balance during market gaps or sharp price movements against their CFD positions. In fact, nearly all CFD providers report over half of their retail clients end up losing their balance when trading with leverage.
Psychology is also a factor here as many inexperienced traders are prone to downplaying the risk associated with using leverage. Others let their emotions interfere with their investment decisions when trading with borrowed capital, a practice that has a pronounced negative effect on their long-term performance.
Sharp price movements, due to the highly volatile nature of Forex, are extremely common. However, when high leverage is applied to your positions, the impact of the volatility is intensified, further increasing the risk of Forex trading. To mitigate the negative effects of high leverage, traders must implement a proper risk management strategy for their trades. Stop-loss orders and position sizing are some of the options one can utilize to minimize the risk of trading with high leverage ratios.
When using leverage of 1:500, you should also be aware of potential margin calls. To maintain your leveraged positions, a broker would require a certain available amount of funds in your account. This is known as margin, which is quite low (0.2%) when trading with 1:500 leverage. That said, such a high ratio of leverage presents a high risk of margin call. Simply put, a margin call occurs when the required equity in your account dips below the required margin and the broker automatically closes your leveraged position.
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