Hedging Forex Brokers

  1. What is Hedging?
  2. Hedging Forex Brokers
  3. Brokers who allow Hedging
  4. Is Hedging restricted in US?
  5. Hedging Brokers List

What is Hedging Broker?

Hedging Brokers allow Hedging as a trading strategy or investment position that offsets potential losses, and in reverse gains, incurred adverse price movements in an asset. A hedge can be constructed from various instruments, stocks, options, OTC and derivative products, futures, and commodities, while many of them allow standardized and efficient hedging.

A hedging strategy usually refers to a general policy, however, it has become more sophisticated due to expanding of Online trading and investors’ knowledge development. Read more about Hedging via Wikipedia.

🏦 SpreadDepending on broker
💰CommissionNo
📈LeverageYes
📉PositionsSell and Buy

What is Hedging Trading Platform?

There are lots of trading platforms and brokers offering hedging strategies, in fact availability of hedging on the platform depends on the broker’s offerings. Hedging can be conducted by a range of platforms including industry-standard MT4.

  • Hedging is used by traders usually when they are not sure about the future volatilities of the markets or when they are expecting market swings due to some events that affect the market. Hedging involves investing in multiple positions to reduce risks and losses.
  • Hedging is a common strategy among traders, while the majority of companies are Hedging Forex Brokers that allow strategy. Nevertheless, there are some jurisdictions, like those regulated by the NFA, US Brokers completely do not allow hedging. Or some Brokers may restrict strategy too like Plus500.
  • Hedging is not a foolproof investment strategy, nor an impenetrable shield for losses. It should be seen as something that may offer advantages and disadvantages in equal measure, requiring careful consideration of your personal circumstances before deciding on the best course of action.
  • Hedging may provide a beneficial layer of security – but it doesn’t come for free. Whether through the direct purchase of derivatives, or foregone profits in exchange for reduced risk, there will be some type of cost involved when hedging investments.
Hedging AdvantageHedging Disadvantage
Enables traders to survive hard market periodsHedging involves costs
Suitable for Long term tradersNot Suitable for Short term traders
Gives the trader protection against commodity price changes, inflation, currency exchange rate changesNot suitable for beginners
Hedging saves time

Top 5 Best Hedging Forex Brokers

Here we made a selection of Hedging Forex Brokers by category. All offer top-notch trading conditions, excellent standards, and guaranteed quality operations for a successful experience suitbale for Hedging Trading with our review:

  • HFM – Best Overall Hedging Broker 2024
  • BlackBull Markets – Best MT4 Hedging Broker 2024
  • FP Markets – Hedging Broker for Currency trading 2024
  • Eightcap– Best Hedging Forex Broker for Beginners 2024
  • BDSwiss – Best EA Hedging Broker 2024

Brokers who allow Hedging

Almost all international brokers (Australia, EU, Asia) offer hedging functionality without any restrictions. Some of the best brokers for using hedging strategy: FXTM, FxPro, IC Markets.

Is Hedging restricted in US?

Hedging is not allowed in the US. Since US traders are not allowed to open accounts in overseas companies, they are automatically restricted from using this strategy with the brokers who normally allow hedging.

Which is the best hedging technique?

Diversification is one of the most effective ways to hedge a portfolio over the long term. By holding uncorrelated assets as well as stocks in a portfolio, overall volatility is reduced.

How does hedging work in forex?

Forex hedging utilizes currency pairs to protect your investments from unexpected shifts in the market. By opening a position on certain opposite currencies, you can safeguard your portfolio while still profiting off future trends.

List of Hedging Forex brokers

These are the brokers that are regulated and recommended for Hedging Trading by us for their reliability and quality services offered:

Broker Detail
HFM Logo HFM
Min. Deposit: 0 US$
Max. Leverage: 1:2000
Trading Platforms: MT4, MT5, HFM Trading App
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5
Regulation: FMA, FSA
2
BlackBull Markets Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5, cTrader
Regulation: ASIC, CySEC, St. Vincent and the Grenadines, FSP, CMA
3
FP Markets Review
Eightcap
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, TradingView
Regulation: ASIC, SCB, CySEC, FCA
4
Eightcap Review
BDSwiss Review BDSwiss
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, BDSwiss Webtrader and App
Regulation: FSC, FSA
5
BDSwiss Review
GO Markets
Min. Deposit: 0 US$
Max. Leverage: 1:30, 1:500
Trading Platforms: MT4, MT5, cTrader, WebTrader
Regulation: ASIC, CySEC, FSC, FSA
GO Markets Review
HYCM
Min. Deposit: $20
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, HYCM Trader
Regulation: FCA, CySEC, DFSA, CIMA
HYCM Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
Pepperstone Review
JustMarkets Review Logo JustMarkets
Min. Deposit: $10
Max. Leverage: 1:30 | 1:3000
Trading Platforms: MT4, MT5
Regulation: FSCA, CySEC, FSA, FSC
JustMarkets Review
FXCC Review FXCC
Min. Deposit: No minimum deposit
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4
Regulation: CySEC, SVG FSA
FXCC Review