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Best High Leverage Broker UK – Cheapest Brokers Revealed

If you’re looking to trade online but don’t have access to a large amount of capital to make the process worthwhile – it might be worth considering a high leverage broker. The amount of leverage available to UK traders is usually capped at 1:30, albeit, if you’re a professional client or use an offshore platform – higher limits are possible. In this guide, we review the best high leverage brokers available to UK traders in 2021.

Top 5 High Leverage Brokers UK 2021

Looking for a quick breakdown of the best high leverage brokers in the UK right now? If so, check out the list below!

  1. eToro – Best All-Round UK High Leverage Broker
  2. Skilling – Best High Leverage Forex Broker for MT4 and cTrader
  3. Capital.com – Best High Leverage Forex Broker for Beginners
  4. Libertex – ZERO Spread Broker WIth Leverage of 1:600 for Professional Clients
  5. FinmaxFX –  Leverage of up to 1:200 for Retail Clients

Best High Leverage Brokers UK Reviewed

Although your main priority might be to find the best UK trading platforms that offer high leverage, you also need to consider other key factors.

In particular, this should include the assets and markets the broker supports, what fees and commissions it charges, and whether or not the platform offers a great user experience.

We have done the hard work for you by selecting five of the very best high leverage brokers in the UK right now.

1. eToro – Overall Best High Leverage Broker UK

eToro is a user-friendly online broker and trading platform that now has more than 17 million investors actively using the site. This popular broker allows you to trade everything from stocks, ETFs, and cryptocurrencies to forex, indices, and hard metals.

Although this low spread broker allows supports traditional investments, each and every financial market on the platform can also be traded as a CFD instrument. In turn, this means that you will have access to leverage.

In terms of limits, this falls in-line with FCA regulations. That is to say, unless you are a professional client, the most you will be able to get is 1:30. This is available when trading major forex market pairs like GBP/USD and EUR/USD – meaning that eToro will offer you lower limits on other asset classes.

For example, if you want to trade minor/exotic forex pairs or gold, you’ll get 1:20. If commodities like silver, copper, wheat, corn, or sugar are more up your street, you can trade these instruments on eToro with leverage of 1:10. You can also trade more than 2,400 stocks from 17 UK and international markets on this top-rated high leverage broker.

eToro will offer you leverage of 1:5 – meaning you can trade stocks with five times the amount you have in your account. If, however, you are able to prove that you are a professional client, eToro will upgrade your account accordingly. In turn, this means that you will be offered much higher leverage limits.

When it comes to trading fees and commissions, this is where eToro really stands out. This is because the broker charges no commissions when you and sell assets. There are no monthly platform fees either, and traditional UK share purchases do not attract stamp duty.

eToro copy trading

If you like the sound of this high leverage broker, eToro accounts take minutes to open. You only need to meet a small minimum deposit of $50, albeit, the minimum trade size at the platform starts at $25 on cryptocurrencies, $50 on stocks, and $200 on ETFs.

Getting money into and out of eToro is also a simple process. This is because you can deposit funds with a UK debit card, credit card, e-wallet, or bank account transfer. And of course – eToro is heavily regulated in the UK. This includes a license with the FCA and your funds are covered by the usual FSCS protections.

Pros:

  • Super user-friendly online broker and trading platform
  • Trade thousands of assets with tight spreads
  • 100% commission-free
  • You can also trade stocks, indices, ETFs, cryptocurrencies, and more
  • Deposit funds with a debit/credit card, e-wallet, or bank account
  • Social and copy trading
  • Accepts PayPal
  • Regulated by the FCA, ASIC, and CySEC

Cons:

  • Not suitable for advanced traders that like to perform technical analysis

67% of retail investors lose money trading CFDs at this site

2. Skilling – Best High Leverage Broker for MT4 and cTrader

Skilling logoSkilling is an online CFD trading platform that offers a full suite of financial instruments at competitive fees. You can trade CFDs in the form of stocks, indices, hard metals, energies, and forex.

The Skilling platform is really simple to use – making it a great choice for newbies. However, perhaps seasoned trading pros will like Skilling too, not least because it is fully compatible with third-party platforms MT4 and cTrader.

This means that you can use the Skilling platform alongside automated forex EAs, advanced chart reading tools, and customizable screens. As a relatively new online broker that was first launched in 2019, Skilling is looking to increase its client base by offering really competitive trading fees.

skilling review

At the forefront of this is the fact that Skilling does not charge any trading commissions whatsoever. In fact, spreads are often very tight too, with major forex pair markets starting from just 0.1 pips. In terms of leverage, this once again depends on your trading status. That is to say, as a UK retail client you will be capped to 1:30.

But, if you manage to upgrade your account status to a professional-client, Skilling will offer you up to 1:200. This is, however, based on a dynamic leverage system – meaning that your limits increase in line with your trading volume. For example, in order to get the full 1:200 limit, you would need to trade at least $10 million in a 30-day period.

skilling review UK

Nevertheless, if you’re happy trading with leverage of 1:30 as a UK retail client, getting started at Skilling takes minutes. You can deposit funds with a debit/credit card, bank transfer, or e-wallet – with the minimum account balance standing at just $100. Finally, Skilling is authorized by the FCA and regulated by CySEC.

Pros:

  • More than 800 financial instruments
  • Commission-free share trading with tight spreads
  • Great for newbies
  • Supports algorithmic trading
  • Compatible with MT4 and cTrader
  • User-friendly mobile app for iOS and Android

Cons:

  • Does not support ETF trading

67% of retail investor accounts lose money when trading CFDs with this provider.

 

3. Capital.com – Best High Leverage Broker for Beginners (£20 Minimum Deposit)

new capital.com logo

On the one hand, if you are seeking a high leverage broker but you don’t have much experience in the online trading scene, you might want to tread with caution. After all, leverage can amplify both your profits and losses.

With that said, newbies in the room might want to consider Capital.com as their go-to beginner-friendly platform for several reasons. Firstly, this popular CFD broker requires a minimum deposit of just £20.

This is the case when funding your Capital.com account with a UK debit card, credit card, or e-wallet. If, however, you transfer funds from your UK bank account – the minimum deposit increases to £250. Nevertheless, Capital.com is also great for inexperienced traders as it offers a fully-fledged demo account facility.

This allows you to practice buying and selling leveraged financial products in a 100% risk-free environment. In addition to this, Capital.com is great for educational resources – which includes a mobile app dedicated to trading courses. In terms of supported markets, Capital.com covers thousands of instruments.

This includes stocks, indices, forex, and commodity trading assets – all via CFDs. Best of all, Capital.com is a 100% commission-free broker and most of its supported markets can be traded with tight spreads. When it comes to leverage, Capital.com is authorized and regulated by the FCA. As such, you’ll be capped to a maximum of 1:30 unless you are a professional client.

Pros:

  • Educational app for new traders
  • AI assistant identifies your weak points
  • Trade ideas generated daily
  • Excellent charting and analysis interface
  • £20 minimum deposit

Cons:

  • Cannot build custom trading strategies

71.2% of retail investors lose money trading CFDs at this site.

4. Libertex – ZERO Spread Broker WIth Leverage of 1:600 for Professional Clients

Libertex is another popular high leverage broker that you might want to consider. The main attraction of this platform is that it does not charge any spreads. Instead, there is no gap between the ‘bid’ and ‘ask’ price on all supported Libertex markets. 

This means that in some ways, Libertex is not too dissimilar to an ECN broker. In terms of what you can trade, Libertex specializes in CFD instruments. This covers everything from hard metals, energies, stocks, indices, and forex.

As a top-rated CFD broker, this means that you can obtain leverage. When it comes to limits, this will ultimately depend on whether you are a retail trader or a professional-client. If it’s the latter, then you will be able to trade with leverage of up to 1:600.

This means that a £1,000 account balance would allow you to open a trade worth £600,000. If, however, you don’t fall within the remit of a professional client, then you will be bound by the same limits that we discussed in our eToro review. This means that the most you can get is 1:30 on major currency pairs and less on other financial instruments. 

When it comes to fees, we mentioned that Libertex is a zero spread broker. However, you will need to pay a trading commission when you open and close positions. With that said, this is often just a fraction above 0%, so all in all – trading fees are really competitive at this high spread broker. 

If you want to get started with Libertex today, the platform requires an initial deposit of £100. However, you can top up your account from just £10 from your second deposit onwards. This can be achieved with a debit/credit card, bank transfer, and several e-wallets. Finally, this two-decade-old broker is licensed by CySEC. 

Pros:

  • Zero spread CFD trading
  • Very competitive commissions
  • Good educational resources
  • Long established broker
  • Compatible with MT4
  • Great choice of markets

Cons:

  • Only offers CFDs

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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.

5. FinmaxFX –  Leverage of up to 1:200 for Retail Clients

FinmaxFX

As we have discussed thus far – if you’re based in the UK and are a retail client, then you will be capped to a maximum leverage limit of 1:30. The only way around this is to use an offshore broker that is not bound by FCA regulations.

Although you need to tread with caution when using a non-FCA broker, we found that FinmaxFX has a great reputation in the online trading scene. Crucially, this online broker allows you to trade with leverage of up to 1:200 – even if you are not a professional client.

This means that a small account balance of £200 would allow you to enter a position worth £40,000. This is available on forex, indices, and gold trading markets, so you’ll get lower limits of other assets. With that said, FinmaxFX will still offer you up to 1:100 on non-gold commodities like oil and natural gas, as well as bonds.

finmax fx review If you’re looking to trade stock CFDs, then you will get leverage of up to 1:20. This is five times more than the 1:5 limit that you will get with FCA regulated platforms. When it comes to commissions, FinmaxFX builds all trading fees into the spread. The amount you pay will ultimately depend on your chosen account type and the asset you are trading.

But, to give you an idea – the Micro Account at FinmaxFX – which requires a minimum deposit of $250, offers spreads from 3 pips upwards. This is also the case with its Mini, Standard, and Premium Accounts. The only way to get your minimum spread down to 1 pip is to opt for the VIP Account, which requires a huge minimum deposit of $100,000.

In terms of payment methods, FinmaxFX supports debit/credit cards, bank transfers, and an assortment of e-wallets. The broker also supports Bitcoin payments, albeit, withdrawals are charged at a whopping 7%. As such, it’s best to cash your trading funds with another payment method.

finmax fx review

Once you are set up with an account at FinmaxFX, you will be able to trade via the popular third-party platform MT5. If you haven’t previously used an MT5 broker UK, the platform offers heaps of advanced order types, technical indicators, chart drawing tools, and even the ability to install a trading robot. You can access MT5 via the FinmaxFX website, desktop software, or the mobile app.

Finally – and perhaps most importantly, FinmaxFX is authorized and regulated by the Vanuatu Securities and Exchange Commission. As a UK trader, this offers little in the way of investor protection. On the flip side, FinmaxFX does demand verification documents from all traders. So, at the very least, it takes its anti-money laundering responsibilities seriously.

Pros:

  • Small minimum deposit
  • Leverage of up to 200:1 on gold
  • Supports the MetaTrader 5
  • Allows automated trading
  • A comprehensive education center
  • Offers futures trdaing on grains, and softs

Cons:

  • Does not hold licenses from top-tier regulators
  • Charges high withdrawal and inactivity fee

There is no guarantee you will make money when trading CFDs with this provider.

 

High Leverage Brokers Fees & Leverage Comparison

If you’re looking for an overview of what limits are offered by the best high leverage forex brokers we discussed on this page – check out the table below.

Max Leverage (Retail) Max Leverage (Professional) Commission
Minimum Deposit
eToro 1:30 Case-by-Case Basis 0% $200
Libertex 1:30 1:600 0%-0.5% £100
FinmaxFX 1:200 1:200 From 3 pips $250
Skilling 1:30 1:500 0% $100
Capital.com 1:30 1:500 0% £20

 

High Leverage Explained – What You Need to Know

The online trading arena in the UK is very heavily regulated. In turn, the FCA has certain protections in place for retail clients with respect to leverage.

To ensure you know the rules and regulations that online brokers need to adhere to, this section will explain everything there is to know about high leverage in the UK.

What is Leverage?

While most of you reading this guide will already understand what leverage is, some of you might be complete novices. In its most basic form, leverage allows you to trade with more money than you have in your brokerage account. In effect, you are essentially borrowing the additional capital from your chosen trading platform.

Leverage can be viewed as a multiple (like x2, x3) or a ratio (like 1:2, 1:3), albeit, most brokers opt for the latter. For example, let’s suppose that you stake £100 on a forex trading position with leverage of 1:10. In turn, this means that you are trading with 10 times your stake. So, in this example, you’ve turned a £100 stake into £1,000.

Here’s a quick example of how this trade would work when using the best high leverage brokers.

  • You stake £100 on GBP/USD – opting for a buy order as you think the exchange rate will rise
  • You apply leverage of 1:10
  • A few hours later, your GBP/USD position is worth 4% more
  • Happy with your profits, you close the trade with a sell order
  • Without leverage, your 4% gains on a £100 stake would have made you just £4
  • However, as you applied leverage of 1:10, this £4 profit is amplified to £40

As you can see from the above, the best high leverage forex brokers allow you to boost your potential profits – making it ideal if you don’t have a large amount of trading capital at your disposal.

UK Leverage Limits

As we have noted through this guide, the FCA is very strict where it comes to leverage limits available to retail clients. For those unaware, having a status of retail client simply means that you are not a professional trader. On the contrary, you are a casual trader that stakes modest amounts from the comfort of your home.

If this sounds like you, then the maximum amount of leverage that you will be able to get at your chosen FCA-regulated broker is as follows:

  • 30:1 for major currency pairs
  • 20:1 for non-major currency pairs, gold, and major indices
  • 10:1 for commodities other than gold and non-major equity indices
  • 5:1 for individual equities and other reference values

You might notice that cryptocurrencies like Bitcoin are missing from the above list. Before January 2021, UK retail clients could trade digital assets with leverage of 1:2. However, the FCA has since banned crypto-derivatives for UK retail clients.

Once again, if you are a retail client and wish to obtain higher limits – you only have two options – which we discuss in the sections below.

Option 1: Open a Professional Client Trading Account 

The best way to increase your access to high leverage brokers is to open an account as a professional client. Irrespective of which UK broker you do decide to use – the requirements to do this remain constant.

leverage limits Libertex

That is to say, you need to meet at least two of the following three criteria:

  • You have a minimum of 1-year experience in the financial services sector. This is quite a broad requirement, albeit, you would likely need to show the high leverage broker that you have worked in a trading/investment capacity in a professional role.
  • Over the past four years, you must have placed at least 10 trading transactions per quarter. This doesn’t need to be at the high leverage broker you are looking to join. For example, if you have previously traded with IG but now want to open a professional account with eToro, this is possible. Crucially, this is the easiest criteria to meet, as 10 transactions per quarter isn’t a lot. In fact, this is essentially just 5 completed trades, as each trade requires both a buy and sell order to open and close the position.
  • You currently hold a portfolio of assets that is worth at least 500,000 EUR (approximately £441,000). This can include investments, savings, and other financial instruments – but not real estate.

As you can see from the above, becoming a professional-client can be challenging. If you don’t have 500,000 EUR in assets, then you will need to prove that you have worked in the financial services sector in a professional capacity, and have traded semi-regularly over the past 4 years.

If you can, then the best high-leverage brokers in the UK will ask you to submit documentation so that they can review your application.

Option 2: Use an Offshore Broker

If you are unable to meet the requirements as a professional client, and you still seek higher leverage than FCA regulations permit, then the only other option is to use an offshore broker.

In simple terms, this means that the platform will not be authorized or regulated by the FCA and you will not be covered by the FSCS protection scheme. The latter covers you in the event a broker goes bankrupt – up to the tune of £85,000.

As such, you need to think carefully about using an offshore broker. If you do proceed, the likes of FinmaxFX offer retail clients leverage of up to 1:200 – which is huge.

Overnight Financing on Leverage

Before embarking on a leveraged trading strategy, it is important to understand that there are certain fees involved. More specifically, you will need to pay an ‘overnight financing fee’ for each day that you keep your leveraged position open.

After all, you are trading with more money than you have in your account – meaning that you are borrowing the balance from the broker in question. In turn, the broker will want a financial return on the capital it lends out, which comes in the form of interest.

There is no standardized interest rate on leveraged financial products, as this can vary from broker to broker and asset to asset. The key point is that trading leverage is not suitable for long-term investments. This is because the overnight financing fee will continuously eat away at your potential gains.

Nevertheless, in terms of when the overnight financing fee kicks in, this again varies depending on the trading platform.

  • At eToro, for example, all leveraged positions incur the daily fee at 17:00 New York time, which is 22:00 in the UK.
  • As such, if you opened a leveraged position at 23:00 on Monday, the first daily charge would be incurred at 22:00 on Tuesday.

Now, knowing what your chosen high leverage broker charges in overnight financing is crucial. Even if you are a short-term trader, an overly expensive interest rate can make the trade unviable.

overnight financing eToro

The good news is that eToro clearly displays what your overnight financing fee will amount to before you place the trade. In fact, the specific daily fee – which is shown in dollars and cents, updates as you change your order box parameters.

For example:

  • If you were trading $50 worth of Royal Mail shares with leverage of 1:5 on eToro, the daily overnight financing fee amounts to $0.04. If the position remains open across the weekend, you’ll pay an additional $0.13.
  • If we increase the above stake from $50 to $500, the daily and weekend fee now stands at $0.44 and $1.32 respectively.

Ultimately, by using a transparent FCA broker like eToro to trade with leverage, you have a full birds-eye view of what overnight financing fees you will be required to pay.

Difference Between Margin and Leverage

When searching for the best high-leverage brokers in the UK, you can be certain that you will come across the term ‘margin’. Both leverage and margin are often used interchangeably, but they do differ slightly.

In simple terms:

  • Leverage refers to the amount that you wish to boost your stake by. For example, leverage of 1:5 will turn a £100 stake into £500.
  • Margin, however, refers to the amount of capital you need to put up to obtain your desired leverage amount. In the example above, your margin is £100, as this is required to obtain £500 in trading capital at 1:5

Understanding how margin requirement is really important when using the best high leverage forex brokers – as this will determine your ‘liquidation’ point.

Being liquidated by your high leverage broker means that the platform will close your trade automatically when it goes down by a certain amount.

  • Sticking with the same example as above, your 1:5 leveraged trade required a margin of £100 – which is 20% of the £500 position.
  • As such, if your position goes in the wrong direction by more than 20%, you will be liquidated.
  • In turn, your chosen high leverage forex broker will keep your £100 margin – meaning you lose your entire stake

Ultimately, this is why you must tread with caution when applying high levels of leverage on your trading positions. Crucially, this is why the FCA has strict limits in place for retail clients.

Other Considerations to Make When Choosing a High Leverage Broker

It is crucial to note that you should never sign up with an online broker just because it offers high leverage limits. On the contrary, there are heaps of other key metrics that you need to take into account, such as:

  • What assets does the high leverage broker support?
  • How much does the high leverage forex broker charge in fees and commissions?
  • Is the high leverage broker regulated by the FCA or another tier-one financial body?
  • What payment methods does the high leverage forex broker accept?
  • Is the high leverage broker suitable for newbies?

As you can imagine, there is a lot to consider when finding the best high-leverage brokers for your needs. As such, if you don’t have time to research dozens of providers yourself, we found that eToro ticks all of the right boxes in terms of user-friendliness, zero commissions, supported markets, and regulation.

How to Get Started with a High Leverage Broker

If you’re ready to start trading with a high leverage broker and you fully understand the risks involved, we are now going to walk you through the process with eToro. This FCA regulated broker will offer you leverage of up to 1:30 the very moment you get the account set up – which takes less than 10 minutes.

Step 1: Open an Account and Upload ID

To get the process started, visit the eToro website and click on the ‘Join Now’ button.

eToro sign up

67% of retail investor accounts lose money when trading CFDs with this provider.

You will now need to enter some personal information and contact details – which includes the following:

  • First and Last Name
  • Home Address
  • Date of Birth
  • Mobile Number
  • Email Address
  • National Insurance Number
  • Username and Password

Step 2: Confirm Identity

As we have discussed throughout this guide, online trading is heavily regulated in the UK. As eToro is authorized and regulated by the FCA, it is therefore required to ask you to upload some documents.

This includes:

  • Valid passport or driver’s license
  • Utility bill or bank account statement (issued within the last 3 months)

You can upload the above documents at a later date if you do not have them to hand. This does need to be done before you can make a withdrawal or deposit more than $2,250, though.

Step 3: Add Funds to Your Trading Account

You will now need to add some funds to your eToro account.

The minimum deposit is $50 and you can choose from the following payment types:

  • Debit/Credit Card (Visa, MasterCard, Maestro)
  • Paypal
  • Skrill
  • Neteller
  • UK Bank Transfer

Step 4: Search for an Asset

You can now search for the asset that you wish to trade with leverage. In our example, we are searching for the major forex pair GBP/USD, as this comes with the highest leverage limit of 1:30.

eToro leverage trading

67% of retail investor accounts lose money when trading CFDs with this provider.

If you don’t know which asset you wish to trade – or you can’t find it from the search facility, click on the ‘Trade Markets’ button (left-hand-side of the dashboard). Then, you can browse the many markets offered by eToro by selecting the asset class – such as stocks or ETFs.

Step 5: Place an Order

Once you click on the ‘Trade’ button next to your desired market, an order box will appear.

Here, you need to decide from a buy or sell order – depending on which way you think the market will go. This is also where you need to enter your stake and choose your leverage limit.

eToro leverage trading

In the example above, you will see that we are staking $50 on this position, with leverage of x30. This means that essentially, the position is worth $1,500.

To place your leveraged, commission-free trade on eToro – click on the ‘Open Trade’ button.

Conclusion

If you’re based in the UK and looking for the best high-leverage brokers – you have likely hit a stumbling block. That is to say, if you are a retail client and seeking leverage limits above and beyond what the FCA permits, then you will be out of luck. Well, unless you can prove you are a professional trader or you decide to use an offshore high leverage broker.

Taking all of this into account, we found that eToro is by far the best option on the table. Not only can UK retail clients obtain leverage of up to 1:30, but all tradable markets are commission-free. Getting started with this popular FCA regulated platform takes minutes and you can instantly deposit funds with a UK debit/credit card or e-wallet!

eToro – Best High Leverage Broker UK with 0% Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

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About Kane Pepi PRO INVESTOR

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.

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