This article will give you full details of forex hedging and the 10 best forex brokers that allow hedging alongside their features, pros, and cons. Firstly, let’s take a look at what we mean by the word ‘Hedging.’
What is Hedging in Forex?
Hedging is the opening of both a short and long position on the same asset, often simultaneously. It means you can be assured of making some gains regardless of the market’s direction.
If assets rise in value, they will be a profit in the long position, and vice versa. Hedging helps in reducing your risk for traders.
10 Best Forex Brokers that Allow Hedging
Here is the list of the 10 best forex brokers that allow hedging:
1. IC Markets
This market is known for being an open broker when it comes to implementing various trading techniques and is by far the best broker to date that allows traders to trade or hedge.
By signing up to trade with this market, traders can also gain from some of the best ECN market access available globally, claiming to be the ‘world’s largest True ECN forex broker.’
Features
- In IC Markets, traders choose the three leading forex trading platforms; cTrader MT4 and MT5.
- Its leverage is high
- No withdrawal or deposit fees and a minimum deposit of $200.
Pros
- Low fees on forex trading
- Fast and easy account opening
- Free withdrawal and deposit
Cons
- It has a limited product selection
- The live chat support is slow
- There is no investor protection for non-EU clients
2. Pepperstone
Pepperstone is very liberal regarding trading styles, even stating on their website: ‘All trading styles welcome including full hedging and EAs.
It means there’s no obstacle holding traders back. Pepperstone was awarded the UK Forex Award for best Forex ECN Broker, and their ‘Razor Raw Spread ECN account’ is a popular choice among many traders.
Features
- Availability of multiple social copy trading platforms.
- Pepperstone offers traders MetaTrader and cTrader, which is a great fit for copy traders and algorithmic traders
- It offers a growing selection of tradeable markets
Pros
- Fast digital account opening
- Excellent customer service
- Seamless and free withdrawal and deposit.
Cons
- It offers mostly CFD
- MetaTrader platform is too basic
3. Admiral Markets
Admiral Markets is also considered an excellent choice for hedging or trading. This market has an enormous range of tradable assets at more than 4,000, and it is perfect for hedging/trading and includes more than 36 forex currency pairs. The minimum deposit on Admiral Market provides for a good starting point for those new to hedging, at just $100.
Features
- Admiral Markets provides a unique set of volatility protection tools for managing risk.
- This market offers 8,425 tradeable symbols: 4,598 exchange-traded securities (non-CFD) and 3,827 CFD.
- It has an outstanding educational content
- Competitive pricing for USD/EUR
Pros
- Fees on forex CFD are low
- Fast and free deposit and withdrawal
- Easy account opening
Cons
- Admirals product portfolio limited mostly to CFDs
- There is also the case of inactivity fee
- The customer support is poor
4. AvaTrade
It offers traders 250 tradable instruments to invest in, which is why a diverse number makes hedging a lot easier for traders.
One feature of AvaTrade that stands out is 24/7 crypto trading, which is beneficial for those who want to hedge or trade cryptos.
An additional benefit includes the ability to trade via ZuluTrade or Duplitrade. You can hedge on AvaTrade with a minimum deposit of $100.
Features
- This market offers 44 forex options and over 1,200 CFDs.
- It offers AvaSocial and DupliTrade, and ZuluTrade for social copy trading.
- It is regulated in three tier-one and tier-two jurisdictions, making it a safe broker for trading forex and CFD.
- Excellent research tools
Pros
- Excellent research tools
- Fast and free deposit and withdrawal
- Easy account opening
Cons
- It offers only CFDs, cryptos, and Forex
- Case of high inactivity fees
- Case of average forex fees
5. FxPro
This platform also ranks highly for being open to different trading strategies and styles. It should be mentioned that traders who use MT5 will not be able to trade or hedge with them as to do so would simply close their position.
Hedging is available through cTrader and MT4, though. This platform was voted ‘Best FX Broker’ by the Shares Awards and was awarded ‘Most Trusted Forex Brand UK’ by Global Brands Magazine. You can start hedging with a minimum deposit of just $100 on FxPro.
Features
- This market offers a variety of pricing options across its account types, including variable and fixed spreads.
- It is best known for its cTrader and MetaTrader platform offerings, available for web, desktop, and mobile.
- This market provides fully-transparent execution methods that vary by account type
- It is regulated in three tier-one and tier-two jurisdictions, making it a safe broker for trading forex and CFD.
Pros
- Excellent customer service
- Fast and free deposit and withdrawal
- Easy account opening process
Cons
- Relatively high trading fees for some stock CFDs
- It offers only CFDs and Forex
- Case of high inactivity fees
Read also:
10 Best CMA Regulated Forex Brokers In Kenya 2022
10 Best Forex Brokers in Botswana
10 Best Forex Brokers With Affiliate Programs
10 Best Forex Brokers With Bonus And Promotions In 2022
6. FBS
Hedging with FBS has a lot of benefits. What makes it one of the best brokers for hedging is its trading features, allowing traders to copy over 10,000,000 other traders.
This can allow you to reduce risk by seeing what other traders are up to and getting a sense of how to diversify your investment. Almost anyone can get started hedging through FBS with a minimum deposit of just $1 is just too good.
Features
- This market offers trading on multiple assets, including metals, energies, Forex, indices, stocks, and over 35 cryptocurrencies,
- It offers a range of accounts to suit traders, and its trading costs are generally low
- It offers full support for the MT5 and MT4 trading platforms and its proprietary FBS Trader App.
Pros
- It offers negative balance protection
- It has a large selection of trading instruments;
- 24/7 support service.
Cons
- Non-availability of auto copying
- No PAMM accounts
- It is not suitable for short-term trading
- The support service is limited to several languages
7. HotForex
HotForex offers some of the best trading conditions and is an excellent choice for hedging. HotForex also offers automated trading via their Auto Account, making hedging easier for MT4 traders.
They also received the ‘Best Customer Service’ award at the 2015 European CEO Awards. You can hedge on HotForex with a minimum deposit of just $10.
Features
- HotForex Market has balanced in-house market analysis, news, and third-party research content.
- Sentiment data and correlation is available on the HotForex Market Traders Board module.
Pros
- Free withdrawal and deposit
- HotForex Market offers the lowest spread with a very low commission
- An excellent copy trading proprietary platform
Cons
- Services may differ depending on your area
- Minimum deposit is high compared to another market
- It has no social trading feature
8. XM
XM traders have several ways to hedge their investments and diversify with more than 1,000 tradable instruments.
XM is also fast, claiming that ‘99.36% of All Trades are Executed in Less than a Second’, which means their 2.6 million traders can more accurately hedge their investment.
The minimum deposit of XM also makes getting started with hedging very easy at just $10, or a reasonable $100 for access to the lowest spreads.
Features
- XM offers 1,230 CFDs, including 57 forex pairs.
- In-house broadcasting features live recordings and TV-quality video content.
- A comprehensive selection of Tradepedia courses, educational webinars, and articles.
- XM offers a full MetaTrader suite that features signals market for copy trading.
Pros
- Low withdrawal fees and Low stock CFD
- Excellent educational tools
- Easy account opening
- Good research content includes podcasts, daily videos, and organized articles.
Cons
- XM product portfolio is limited
- Average stock index CFD fees and Forex
- XM has no investor protection for non-EU clients
9. OctaFX
OctaFX offers several ways to hedge investments, especially good for traders who live in the Asia-Pacific region.
A particularly useful tool OctaFX offers is their automated trading feature available through their utilizing robots (expert advisers) and the MT4 platform to help traders find the best way to hedge.
Features
• This market offers a new proprietary platform for social copy-trading
• It maintains a growing array of well-organized research, with daily updates, weekly forecasts, trading ideas, and third-party content.
• This market is regulated in only one tier-2 jurisdiction, making it a high-risk broker for CFD and forex trading
Pros
- OctaFX is licensed to carry out brokerage activities by the CySEC (Cyprus regulator).
- Available minimum deposit of at least $100 into your account.
- OctaFX offers vast trading opportunities, including various assets and access to a service for copying trades.
- OctaFX offers proven platforms for trading such as cTrader, MetaTrader 4, and MetaTrader 5.
Cons
- OctaFX has a limited choice of investment solutions to generate passive income.
- CFDs and cryptos cannot be traded on cTrader accounts.
- OctaFX payment systems list changes regularly.
10. FP Markets
This market offers traders 10,000 plus instruments to trade, which is more than required to ensure your investment is properly hedged.
Users can sign up to FP Markets’ ECN account, which allows them to create their trading algorithms or download ones created by expert advisors, making it easier to carry trades according to the right conditions.
All of this at FP Markets is also kept within reach of all investors with a low deposit that starts from only $100.
Features
- This market offers the MetaTrader suite and ultra-competitive spreads available through its commission-based Raw ECN account.
- This market provides access to the Iress platform suite, which offers over 8,900 tradeable symbols.
Pros
- Forex fee is relatively low
- Fast account opening and funding
- It has an excellent educational tool
Cons
- FP Markets research tools are not perfect
- Outdated desktop platform and web
- FP Market’s product portfolio is limited
A forex trader can create a “hedge” or trade to fully protect an existing position from an undesirable move in the currency pair by simultaneously holding a long and a short position on the same currency pair.
Above is a list of the ten best forex brokers that allow hedging alongside their features, cons, and pros.
I hope you find this article helpful and do well to share it with friends and loved ones.
Watch the video below to know the best forex brokers that allow hedging:
About Author
Latest entries
- Forex TradingOctober 2, 2023Top 10 Best Micro Account Forex Brokers in Australia 2023
- CryptocurrencySeptember 28, 20237 Best Crypto Exchanges In Germany 2023
PaymentsSeptember 26, 20237 Best International Money Transfer Apps For 2023- BusinessSeptember 21, 2023How to Brainstorm for New Business Ideas in 2023
