Forex Brokers for Hedging

Forex hedging is a popular trading strategy used by many traders. Forex Brokers for Hedging, are fx brokers that allow their clients to use hedging while trading the financial markets.

What is Hedging in Forex Trading?

Hedging is a strategy used by traders to protect a position from an adverse move in the foreign exchange market. Hedging consists two strategies, full protection perfect hedge and partial protection imperfect hedge.

What is the Perfect Hedge?

The perfect hedge strategy, refers to the version of a hedging strategy where a forex trader creates a hedge that fully protects and eliminates any risk to an existing position from market volatility. This can be achieved by holding both short and long positions, at the same time, on a the same currency pair.

What is an Imperfect Hedge?

Imperfect hedging, is a hedge strategy where a forex trader partially protects an existing open position from volatile market movements by using Forex options. This method of using forex options to protect long or short position, only eliminates some of the risk and therefore, it is called imperfect hedge.

Some forex brokers allow hedging on their trading platforms and some others do not allow it. Hedging is simple but tricky strategy that is best used with caution. Another popular trading strategy is scalping. Visit our simple forex trading course to learn more about forex trading and the various trading strategies.

Here is a list of forex brokers that allow hedging through their trading platform

 

Rank
Broker
Regulation
Min. Deposit
Min. Spread
Start Trading
1
Fxtm
FCA, CySec, FSB
$5
0.1
Open Account
Review
2
Avatrade
CySec, FCA
$100
2.1
Open Account
3
Plus500
FCA, Cysec
$100

0.7
Open Account
4
Easymarkets
CySec, ASIC
$100

0.8
Open Account
5
24option
CySec
$100
2.1
Open Account
6
Markets.com
CySec,FSB
$100
1.7
Open Account
7
Etoro
CySec,FCA,ASIC
$200
0.6
Open Account
8
Ufx
CySec
$500
0.5
Open Account
9
Cityindex
FCA
$100
1.8
Open Account
10
Forex.com
FCA
$250
1.8
Open Account
11
Fxcm
FCA,ASIC,NFA
$100
1.4
Open Account
12
XM
FCA,CySec,ASIC
$100
2
Open Account
13
Exness
CySec,ASIC
$100
0.9
Open Account
14
Fbs
CySec,IFSC
$1
0.9
Open Account
15
Etx capital
FCA
$100
0.9
Open Account
16
FXPro
FCA,CySec
$100
0.7
Open Account
17
HYCM
FCA,CySec
$100
1.9
Open Account
18
IronFX
FCA,CySec
$100
2.2
Open Account
19
ATFX
FCA,CySec,ASIC
$100
0.8
Open Account
20
Alpari
FCA,CySec,IFSC
$100
0.3
Open Account
21
IQ Options
CySec
$100
1.2
Open Account
22
Libertex
CySec
$100
0.6
Open Account
23
AAA Trade
CySec
$100
0.5
Open Account
24
AETOS
CySec
$100
1
Open Account
25
Q8 trade
CMA
$100
1
Open Account