In simple words, hedging refers to taking long and short positions on a particular asset at the same time. The idea behind hedging is to make some gains irrespective of the direction in which the market moves. Some of the best forex brokers for hedging are the ones that let you mitigate risks by diversification of trades. Our experts have compiled a list of brokers that allow hedging using a variety of trading tools and features to help you make the most of the market conditions.
Best Forex Brokers for Hedging 2023
1. XM
Launched in 2009, XM is a leading forex broker that is regulated by CySEC, FCA, BaFIN, and MiFID. Through the great platforms of XM, users can trade on forex, stocks, CFDs, precious metals, Gold, Oil, and cryptocurrencies. For novice clients, the broker has a demo account to get familiarized with nuances of the forex market and more. However, to open a real account with XM, the trader has to make an initial deposit of $50.
Pros:
Client funds in segregated accounts
No rejections and no re-quotes
A large client base of over 1,000,000
More than 55 currency pairs on Majors, Minors, and Exotic
300+ trading instruments
No commission on trades for Standard and Micro accounts
MetaTrader 5 and MetaTrader 4 platforms
Demo account
Easy deposit and withdrawal process
Different options for deposit and withdrawals
Cons:
No guaranteed stop losses
Offers only variable spreads
2. HotForex
This award-winning commodities and forex broker came into existence in 2010 and is headquartered in Cyprus. It provides trading services to both institutional and retail clients through its automated and state-of-the-art platforms. It has offices in Cyprus, South Africa, St. Vincent and Grenadines, and Dubai.
Pros:
Accurate trading tools
Regulated by FCA (Financial Conduct Authority)
Offers the social trading option
Stores funds in segregated accounts
Provides demo account
Low trading fees
Islamic account is available
Flexible leverage levels for trading accounts
No deposit fee
MT4 and MT5 trading platforms
Cons:
No 24/7 customer service
Inactivity fee required
3. OctaFX
An umbrella brand, OctaFX was established in 2011 as an online forex broker to provide a variety of CFDs trading options in forex, cryptocurrencies, commodities, metals, and indices. The broker serves more than 1.5 million clients worldwide and is regulated by CySEC. In opening an account with OctaFX, clients can take advantage of bonus promotions and higher leverage.
Pros:
No deposit and withdrawal fee
Provides negative balance protection
Segregated accounts
The low minimum amount for withdrawals
Fast registration
Fully digital journey
Real market conditions
No time limit
Access to all features of the trading platform
Hedging and scalping are available
Cons:
The withdrawal process is slow
Only two base currencies – USD or EUR
4. Exness
This Cyprus-based forex broker is owned and managed by Nymstar Ltd. What is good about Exness is that clients can open an account with it at no minimum deposit, whilst having full access to more than a hundred currency pairs. Exness has on offer four account options to meet varied capitalization and experience levels. Clients can access MT4 and MT5 trading platforms to take advantage of interesting and useful features and make the most of the active market conditions.
Pros:
Access to more than 1000 forex pairs
No deposit fees
Instant funding of your account through cards or e-wallet
Very low spreads
Demo account provided
Regulated by FSA, CySEC, and FCA
24/7 customer support
Funds are stored in segregated accounts
Negative balance protection
No inactivity fee
Cons:
The range of assets is limited
Does not accept clients from Israel, the USA, and more
5. EasyMarkets
Regulated by CySEC and ASIC, EasyMarkets is a popular online forex broker whose intuitive platforms let clients carry on trading with forex, commodities, cryptocurrencies, indices, and CFDs. For those clients that are just starting, there’s a demo account to try. However, to open a live account with EasyMarkets, clients need to make an initial deposit of £100.
Pros:
No commission on trades
No deposit or withdrawal fees
300+ trading instruments
Well-established broker with more than 16 years of experience
Availability of ‘Freeze Rate’ and ‘dealCancellation’ features
Transparent services
Intuitive and safe trading platforms
Good customer service
Swing and Intraday trade options
MT5, MT4, and WebTrader platforms
Cons:
Does not offer variable spreads
Trading on cryptocurrencies and stocks not allowed
