We found 11 online brokers that are appropriate for Trading Hedging.
Brokers that allow hedging can help minimize your risk and protect you from incurring bigger losses when trading due to unexpected events.
This is the reason brokers offering hedging are currently in great demand.
Although a popular risk management strategy, hedging doesn't guarantee profits and can even reduce potential gains in some situations.
Hedging is a complex strategy and can have a high risk of financial loss. Readers should thoroughly understand the risks before using it.
Specific brokers mentioned that offer some features and trading tools useful for hedging are just examples, and readers should conduct their own research before choosing a broker.
When it comes to trading, IC Markets emerges as a stalwart contender, particularly appealing to traders with a penchant for precision and speed. Its diverse range of advanced trading platforms, including MT4, MT5, cTrader, and TradingView, coupled with an efficient infrastructure, ensures minimal latency and lightning-fast execution, averaging a remarkable 40ms. IC Markets' commitment to offering tight spreads across a broad spectrum of financial instruments, from Forex to cryptocurrencies, solidifies its position as a top choice for seasoned traders like us. Additionally, features like free low latency VPS and sophisticated trading automation options underscore its suitability for trading, aligning perfectly with our discerning requirements.
IC Markets is a favorite among experienced traders who value tight spreads and fast execution. They provide access to a wide range of assets, including Forex, commodities, indices, and cryptocurrencies. Ideal for scalpers and day traders who rely on quick order execution. IC Markets is also excellent for hedging, as their advanced platforms and tools allow traders to implement hedging strategies efficiently, minimizing risk exposure while maximizing potential returns.
RoboForex presents an intriguing proposition for traders seeking flexibility, competitive fees, and advanced trading tools. Its offering of high leverage and ultra-competitive spreads, starting virtually at zero, caters to our appetite for maximizing returns. The platform's adaptability across various interfaces, including MT4 and MT5, ensures seamless trading experiences regardless of our location or device. While the platform empowers us with features like EA scripting and high leverage options, it's important to remain mindful of the associated higher risk. Nonetheless, RoboForex's intuitive design and swift execution capabilities make it a compelling choice for capitalizing on rapid market movements across diverse trading instruments.
RoboForex is ideal for traders looking for high leverage and competitive spreads, making it suitable for both beginners and experienced traders. The platform supports a variety of hedging strategies, with advanced tools and features that allow traders to manage risk effectively. RoboForex's high leverage options and diverse asset offerings provide ample opportunities for hedging, ensuring that traders can protect their portfolios against adverse market movements.
eToro is a unique platform that combines social trading with traditional brokerage services. It's great for traders who want to follow and copy the trades of successful investors (CopyTrading). eToro has over 30 million users, which is far more than most brokers in Europe. Perfect for traders who appreciate a user-friendly interface and community-driven trading insights. Regulated by CySEC and the FCA (UK), ensuring a high level of safety for European traders.
eToro's social trading features make it an excellent platform for hedging, as traders can observe and copy strategies from successful investors. This can serve as a practical risk management tool, enabling less experienced traders to hedge their positions by mirroring the actions of seasoned professionals. With its wide range of assets and regulatory oversight, eToro provides a robust environment for implementing effective hedging strategies.
For traders with a penchant for in-depth market analysis and a thirst for knowledge, XTB emerges as a beacon of excellence. Its extensive suite of research tools and educational resources caters to both novice traders seeking to hone their skills and seasoned professionals aiming to refine their strategies. With stringent regulations from FCA and CySEC, XTB provides a secure and compliant trading environment, instilling confidence in traders like us to explore the nuances of trading with peace of mind.
XTB is a top choice for traders seeking in-depth market analysis and research tools. They offer a comprehensive education section for traders of all levels. Best suited for traders who value thorough market analysis and want to improve their trading skills. Regulated by the FCA and CySEC, ensuring a safe trading environment in Europe. XTB's robust analytical tools and resources make it particularly effective for hedging, as traders can leverage detailed market insights to make informed decisions and mitigate risks.
XM is an excellent broker for traders looking for a well-rounded platform with a focus on customer support. They provide a range of account types and various trading instruments. Ideal for traders who want to have access to reliable customer support and a wide range of assets. Regulated by ASIC, CySEC, and the IFSC, offering a high degree of regulatory oversight.
XM's diverse range of account types and asset classes make it well-suited for hedging strategies. Traders can take advantage of various tools and resources to manage risk effectively, ensuring their portfolios are well-protected against market volatility. With strong regulatory oversight and a commitment to customer support, XM provides a reliable platform for implementing hedging techniques.
Pepperstone garners attention for its unwavering commitment to customer satisfaction and diverse trading offerings, catering to a broad spectrum of trader preferences. Whether our focus lies in trading or venturing into alternative asset classes, Pepperstone's comprehensive suite of options ensures that our trading needs are met with precision. Backed by regulatory oversight from the FCA and ASIC, Pepperstone upholds the highest standards of integrity and reliability, crucial factors in our decision-making process as experienced traders.
Pepperstone's diverse asset offerings and advanced trading tools make it an excellent choice for hedging strategies. The broker's strong regulatory framework ensures a secure environment for managing risk, while its fast execution speeds and tight spreads provide the necessary conditions for effective hedging. Pepperstone's commitment to customer satisfaction further enhances its appeal as a reliable platform for hedging.
AvaTrade distinguishes itself with its versatility, offering a plethora of funding and withdrawal options to fit the eclectic needs of CFD traders. Its mobile app, AvaTradeGo, and the social trading platform, AvaSocial, are game-changers, weaving convenience with community. Here, trading is not a solitary journey but a shared venture, enriched by a diverse selection of instruments and a commission-free structure that puts more of your hard-earned profits in your pocket. AvaTrade is the choice for the trader who values flexibility, community, and cost-efficiency in their trading toolkit.
AvaTrade's versatile trading platforms and comprehensive asset selection make it a strong candidate for hedging. The availability of social trading through AvaSocial allows traders to follow and implement successful hedging strategies from experienced traders. This, combined with a commission-free structure, enables traders to effectively manage risk while maximizing profitability.
FP Markets is where technology meets trading, offering the revered MetaTrader 4 and 5 platforms, but with a twist—enhanced features that elevate your trading efficiency. It's not just about the platforms; it's about how FP Markets optimizes them for your success. With competitive spreads and a smorgasbord of trading options, FP Markets is where strategy meets opportunity, allowing you to tailor your trading approach with precision. For the trader who demands the cutting edge in technology without sacrificing cost efficiency, FP Markets is your digital arsenal.
FP Markets stands out for its advanced technological enhancements to the MetaTrader platforms, making it ideal for sophisticated hedging strategies. The broker's competitive spreads and wide range of trading options provide the perfect environment for implementing effective hedging techniques. With FP Markets, traders can leverage technology to optimize their risk management strategies, ensuring their portfolios are well-protected.
Brokers that allow hedging act like insurance if price movements do not go in your favor when trading.
Hedging has several forms, the most commonly known are simple hedging and complex hedging.
Below we explain both:
Let's consider an example where you are trading EURUSD, currently priced at 1.09366 USD. You decide to trade with $10,000. To hedge this trade, you might sell half of your position in the market.
Hedging a trade is a strategy used to minimize risk and to reduce potential downside. By taking an opposite position, you can protect yourself against potential losses in your primary trade.
If the trade goes in your favor: If the EURUSD price rises from 1.09366 USD to a higher level, your long position will generate profits. However, your hedge (the opposite position) will incur losses. Ideally, the profits from your primary trade will exceed the losses from the hedge, resulting in a net gain. For example, if EURUSD rises to 1.10000 USD, your long position gains will be significant, though partially offset by losses in the hedged position.
If the trade goes against you: If the EURUSD price falls from 1.09366 USD to a lower level, your long position will incur losses. However, your hedge will generate profits. The profits from the hedge can offset the losses from your primary trade, reducing your overall risk. For instance, if EURUSD falls to 1.08500 USD, the losses from your long position will be mitigated by gains in your hedged position.
Hedging can be applied in other markets like stocks, indices, commodities and even cryptocurrency as well.
Simple hedging, also known as direct hedging, is common in the Forex markets.
Usually, brokers offset an existing position with a new one to manage risk.
Suppose your broker opens a long trade of 0.5 lots. The brokerage firm may also open a short trade position of the same currency pair and lot size.
If the movement of one trade goes negative, another position may be opened in the opposite direction. The next step to minimize your loss is to take out the profit from the positive movement and adjust the stop for the other position. This is how hedging works.
In the complex form, brokers use several methods, which is often preferred when trading currencies in spot Forex. However, even with hedging, profit is not guaranteed as financial markets can be unpredictable.
Let's understand it in simple terms.
Suppose a trader is looking for a long trade setup and purchases an option at the strike price, which is lower than the spot price.
In the second action, the risk is minimized if the currency prices go up. If not, the trade is closed at the spot loss option.
For example, if you purchase a call option for EUR/USD at a strike price below the current market price and the price increases, you can profit from the movement. Conversely, if the price drops, your loss is limited to the premium paid for the option.
Beyond buying and selling, other hedging strategies include using options contracts, futures contracts, and other derivatives to protect against potential losses. These instruments can provide more tailored risk management solutions for different trading scenarios.
It is very important you choose the best brokers that allow hedging as per your investment strategy. Below are some parameters to consider before striking a deal with one:
The first thing to check is that your broker is regulated.
Check their certifications on each regulatory body's website. Ensure your broker holds regulation in a major European economy like the UK or Germany. Note that not all regulatory bodies explicitly permit hedging. Some jurisdictions may have restrictions or limitations.
Brokers should be well regulated by local jurisdictions like the Financial Conduct Authority. This provides a layer of protection, though it should be understood that hedging is very risky.
Brokers should offer different hedging methods as simple methods may not always be suitable for your investment strategy. Alternative hedging strategies such as futures and options combinations could be considered.
While larger accounts can sometimes be more suitable for hedging due to their capacity to absorb risks, this is not a universal truth and depends on the individual trader's strategy and risk tolerance.
Be aware that hedging involves costs, including transaction fees, increased margin requirements, or slippage, and potential impacts on overall portfolio performance. These factors should be considered when deciding to hedge.
If your hedging strategy is correct, you may minimize losses. Understanding hedging and using it effectively is an invaluable tool to add to your trading skills.
Note that hedging is a highly risky strategy and can lead to losses. It should not be considered a 100% safe trading method. Hedging does not build wealth but helps protect your capital from significant losses.
Hedging is very risky, and brokers that allow hedging can help you minimize risk when trading.
Take advantage of the various educational resources and tools offered by your broker. You may reduce your losses if hedging is done correctly.
We have conducted extensive research and analysis on over multiple data points on Forex Brokers that Allow Hedging to present you with a comprehensive guide that can help you find the most suitable Forex Brokers that Allow Hedging. Below we shortlist what we think are the best hedging brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Forex Brokers that Allow Hedging.
Selecting a reliable and reputable online Hedging trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Hedging more confidently.
Selecting the right online Hedging trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for hedging trading, it's essential to compare the different options available to you. Our hedging brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a hedging broker that best suits your needs and preferences for hedging. Our hedging broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Hedging Brokers.
Compare hedging brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a hedging broker, it's crucial to compare several factors to choose the right one for your hedging needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are hedging brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more hedging brokers that accept hedging clients.
Broker | IC Markets | Roboforex | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro | Admiral |
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) | Financial Conduct Authority (FCA) (595450), Cyprus Securities and Exchange Commission (CySEC)(310328), FSA (Financial Services Authority of Seychelles) (SD073) |
Min Deposit | 200 | 10 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 | 1 |
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Used By | 200,000+ | 730,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ | 30,000+ |
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Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT4, MetaTrader WebTrader, Admirals Mobile Apps, iOS (App Store), Android (Google Play), Admirals Platform, StereoTrader |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 75-83% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% 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. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider | Losses can exceed deposits |
Demo |
IC Markets Demo |
Roboforex Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Admiral Markets Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR | US, CA, JP, SG, MY, JM, IR, TR |
You can compare Hedging Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Hedging Brokers for 2025 article further below. You can see it now by clicking here
We have listed top Hedging brokers below.