⚠️ CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X

Brokers Supporting Hedging

Updated July 14th 2024
Welcome to the most in-depth comparison table for the following brokers that support Hedging :

The ForexReviews.nl comparison tool rigorously compares forex brokers on factors like fees, platforms, licenses, apps, spreads, and ratings. Filter and narrow down brokers to find the ones that best suit your preferences compared to its competitors.

What is hedging?

Hedging with CFD brokers in forex refers to opening multiple CFD positions that can offset each other to reduce overall risk. Here is a simple explanation:

  • CFDs (Contracts for Difference) allow traders to speculate on forex price movements without owning the underlying currency. You simply speculate on price going up or down.
  • Say you buy a CFD for EUR/USD, betting that euro will go up compared to dollar. But you worry it may go down instead.
  • To hedge, you sell a CFD for EUR/USD at the same broker. This profits when euro goes down relative to dollar, offsetting losses if your first position goes wrong.
  • Now if EUR/USD price rises, your long CFD profits but short CFD loses. If EUR/USD price falls, your short CFD profits but your long one loses. Losses get reduced.
  • Many CFD brokers allow you to hold both long and short CFD positions simultaneously. This makes hedging straightforward. Your broker simply nets the P&L from the two positions.

So with CFD brokers, hedging forex involves opening two opposing CFD positions. Gains in one can cushion losses in the other. It allows managing your exposure to forex volatility. The broker combines the two positions to calculate overall P&L for you.

Why do some brokers not allow hedging?

Here are some common reasons why some CFD brokers do not allow hedging:

  • Increased Risk - Hedging can enable trades with larger position sizes and higher risk. If poorly managed, it can lead to substantial losses that some brokers want to avoid.
  • Higher Margin Requirementsk - Keeping offsetting open positions requires margin on both sides. This ties up a larger amount of capital. Brokers may lack sufficient liquidity to support widespread hedging.
  • Reduced Trading Commissionsk - Brokers make money when traders open and close positions frequently. Hedged positions are often held longer, reducing commission revenue.
  • Conflicts of Interestk - For market-making brokers managing their own risk exposure, client hedging can undermine their own books and create volatility risks.
  • Exploiting Pricing Errorsk - Hedging makes it easier to exploit mispriced spreads and swaps rates. Brokers restrict it to prevent loss of revenue.
  • Regulatory Restrictionsk - Some regulators prohibit or restrict the practice to encourage prudent risk management. Restrictions can eliminate arbitrage opportunities.

Overall the main consideration is risk management from both the trader’s and broker’s perspective. Allowing uncontrolled hedging can be detrimental for thinly capitalized traders or brokers. So strict hedging rules or limitations are often imposed as a precaution.

Some brokers do allow hedging, and that's why we've compiled the list for you in the comparison table below so you can find the right broker that suits your preferences.


Plus500 is a CFD provider and they offer CFD service. All the instruments, including the Forex pairs, are available for trading through CFD

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Rating
Overall Rating 4.5 4.5 4.5 4 4 4.5
Offering of Investments 4 4 4 3.5 5 4.5
Commissions & Fees 4 5 4.5 4 4.5 4.5
Platform & Tools 4 4 4 4 4 4
Research - - 4 4 4 4
Mobile Trading 4 5 4 4 4 4.5
Education - - 4 3.5 4 4.5
Trustpilot Reviews 551 863 5484 6530 14 3063
Trustpilot Rating 3.2 4 4.6 4.5 4.3 4.5
Trustpilot Profile View View View View View View
Licenses
Tier 1 Licenses 2 1 - - - -
Tier 2 Licenses 1 3 - - - -
Tier 3 Licenses 1 1 - - - -
Licenses - - 6 2 2 -
Investments
Forex Trading (Spot or CFDs)
Forex Pairs (Total) 1429 57 107 40 72 -
Tradeable Symbols (Total) 55 6010 100 229 26000 -
U.S. Stock Trading (Non CFD) no
Int'l Stock Trading (Non CFD) no no no
Social Trading / Copy Trading
Cryptocurrency (Physical) no no no no no no
Cryptocurrency (CFD) no
Crypto Pairs (CFD) 58 46 11 - 10 -
Assets
CFDs
ETFs no no no no
Forex
Indices no
Shares no no
Commodities no
Oil Trading no
Licensing Jurisdiction
ASIC Authorised (Australia) no no no no no
IIROC Authorised (Canada) no no no no no no
SFC Authorised (Hong Kong) no no no no no no
CBI Authorised (Ireland) no no no no no no
FSA Authorised (Japan) no no no no no
MAS Authorised (Singapore) no no no no no no
FINMA Authorised (Switzerland) no no no no no no
FCA Authorised (U.K.) no no no
CFTC Registered (USA) no no no no no
FMA Authorised (New Zealand) no no no no no
CBRC Authorised (China) no no no no no no
CySEC Authorised (Cyprus) no
SEBI Authorised (India) no no no no no no
Israel (ISA Authorised) no no no no no no
CBR Authorised (Russia) no no no no no
FSCA Authorised (South Africa) no no no no
SEC Authorised (Thailand) no no no no no
DFSA / Central Bank Authorised (UAE) no no no no no no
SCB Authorised (Bahamas) no no no no
FSC Authorised (Belize) no no no no no
FSA Authorised (Seychelles) no no no no no
CIMA Authorised (Cayman Islands) no no no no no no
BMA Authorised (Bermuda) no no no no no no
FSC Authorised (British Virgin Islands) no no no no no no
FSC Authorised (Mauritius) no no no no no
VFSC Authorised (Vanuatu) no no no no no no
Funding
Min. Deposit 5 0 10 50 0 250
PayPal (Deposit/Withdraw) no no no no
Skrill (Deposit/Withdraw) no
Visa/Mastercard (Credit/Debit) no no
Bank Wire (Deposit/Withdraw) no
Webmoney (Deposit/Withdraw) no no no no no
Crypto Funding
Bitcoin (BTC) no no no no no
Litecoin (LTC) no no no no no
Ethereum (ETH) no no no no no
Tether (ERC20) no no no no no
Tether (TRC20) no no no no no
Dogecoin (DOGE) no no no no no
Trading Platforms
Proprietary Platform no no
Desktop Platform (Windows) no no
Desktop Platform (Mac) no no no no no no
Web Platform no
Social Trading / Copy Trading no
Mobile App (Android) no no no
Mobile App (iOS) no no no
Trading Software
MetaTrader 4 (MT4)
MetaTrader 5 (MT5) no
cTrader no no no no no no
DupliTrade no no no no no no
ZuluTrade no no no no no
Myfxbook no no no no no
VPS Trading no no no no no
Cost
Average Spread EUR/USD - Standard 1.6 1.07 - 0.98 0.827 -
All-in Cost EUR/USD - Active 0.8 1.04 - 0.82 0.827 -
Active Trader or VIP Discounts no no no
Inactivity Fee no no no no no
Execution: Agency Broker no no no no
Execution: Market Maker no
Research
Daily Market Commentary no
Forex News (Top-Tier Sources) no no no
Autochartist no no no no
Trading Central (Recognia) no no no no
Social Sentiment - Currency Pairs no no no no
Economic Calendar no no
Education (Forex or CFDs) no no
Client Webinars no no
Client Webinars (Archived) no no no
Videos - Beginner Trading Videos no no
Videos - Advanced Trading Videos no no
Investor Dictionary (Glossary) no no no no
Tick History no no no no no
Major Forex Pairs
GBP/USD
USD/JPY
EUR/USD
USD/CHF
USD/CAD
NZD/USD
AUD/USD
Mobile Trading
Android App no no
Apple iOS App no no
Mobile Alerts - Basic Fields no
Mobile Watchlist no no
Watchlist Syncing no no no no
Mobile Charting - Indicators / Studies 30 39 - 30 30 -
Mobile Charting - Draw Trendlines no no
Mobile Charting - Multiple Time Frames no no
Mobile Charting - Drawings Autosave no no no no
Forex Calendar no no
Trading Tools
Virtual Trading (Demo) no
Alerts - Basic Fields no no no
Watchlists - Total Fields 7 8 - 7 7 -
Charting - Indicators / Studies (Total) 30 39 - 30 30 -
Charting - Drawing Tools (Total) 15 32 - 15 15 -
Charting - Trade From Chart no no
Charts can be saved no no no
Spread
Stocks - - - - - -
Currencies - - - - - -
Indices - - - - - -
Commodities - - - - - -
Max. Leverage
Overall Max. Leverage 1:888 - 1:2000 1:500 1:500 1:30
Stocks - - - - - -
Currencies - - - - - -
Indices - - - - - -
Commodities - - - - - -
Features
Scalping
Hedging
Trailing Stops no no
Guaranteed Stop Loss no no no no no no
Guaranteed Limit Orders no no no no no no
Guaranteed Execution no no no no no no
Negative Balance Protection no no
One-click Execution no
Interest on Margin no no no no no
Demo Account no no no
Web-based Trading no no
Mobile Native App Trading no no
Islamic Account no no
Zero Spreads no no no no no no
Regulation
Trust Score 90 96 95 70 77 -
Year Founded 2009 2002 2008 2011 2014 2015
Compensation Fund 20000 20000 20000 20000 15000 20000
Publicly Traded (Listed) no no no no no
Bank no no no no no no
Authorised in European Union no no
Member of The Financial Commission no no no no no
The Financial Commission Profile - - View - - -
VerifyMyTrade Audit - - - - - -
Public Disclosures
Financial Statements - View View View - -
Management Team - View View - - -
Support
Email Support no no
Phone Support no no no no no no
SMS Support no no no no no no
Live Chat no no no no no no
Support Hours 24/7 - 24/7 24/7 - 24/5
Community
Monthly Website Visitors 11.6 M 6.5 M 25.8 M 3.5 M 312 K 207 K
X Subscribers 115 K 4 K 70 K 37 K 11 K 10 K
Youtube Subscribers 104 K 6 K 81 K 1.0 M 9 K 9 K

Can you trust XM?

  • XM was founded in 2009.
  • XM does not operate a bank and is not publicly traded.
  • XM is authorised to operate in the 🇪🇺 European Union.
  • XM is licensed by the world's most strict and feared regulator 🇬🇧 ASIC (AU).
  • XM is licensed by the 🇬🇧 FCA (UK).
  • XM is registered by the 🇺🇸 CFTC (USA) .

Is XM authorised to operate in the US?

✅ Yes, XM is CFTC Registered (USA) which means that you are allowed to trade on their platform if you are based in the United States.

What licenses does XM have to operate?

XM is authorised by the following regulators: ASIC Authorised (Australia), FCA Authorised (U.K.) , CFTC Registered (USA) , CySEC Authorised (Cyprus) and SCB Authorised (Bahamas) .

Does XM publicly discloses their financial statements?

❌ No, unfortunately XM does not list their financial statements publicly on their website.

Does XM offer trading software like Meta Trader?

✅ Yes, you can trade on XM using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading software as well as through their web trading platform .

Does XM provide a mobile native app?

✅ Yes, you can trade XM on mobile using Mobile App (Android) and Mobile App (iOS).

Can you trust XTB?

  • XTB was founded in 2002.
  • XTB does not operate a bank and is publicly traded.
  • XTB is authorised to operate in the 🇪🇺 European Union.
  • XTB is licensed by the 🇬🇧 FCA (UK).

Is XTB authorised to operate in the US?

❌ No, XTB is not authorised to operate in the United States.

What licenses does XTB have to operate?

XTB is authorised by the following regulators: FCA Authorised (U.K.) , CySEC Authorised (Cyprus), CBR Authorised (Russia), SEC Authorised (Thailand) and SCB Authorised (Bahamas) .

Does XTB publicly discloses their financial statements?

✅ Yes, you can view the financial statements of XTB online

Does XTB offer trading software like Meta Trader?

✅ Yes, you can trade on XTB using MetaTrader 4 (MT4) trading software as well as through their proprietary trading platform .

Does XTB provide a mobile native app?

✅ Yes, you can trade XTB on mobile using Mobile App (Android) and Mobile App (iOS).

Can you trust Exness?

  • Exness was founded in 2008.
  • Exness does not operate a bank and is not publicly traded.
  • Exness is authorised to operate in the 🇪🇺 European Union.
  • Exness is licensed by the 🇬🇧 FCA (UK).

Is Exness authorised to operate in the US?

❌ No, Exness is not authorised to operate in the United States.

What licenses does Exness have to operate?

Exness is authorised by the following regulators: FSA Authorised (Japan), FCA Authorised (U.K.) , CySEC Authorised (Cyprus), FSCA Authorised (South Africa) and FSC Authorised (Belize) .

Does Exness publicly discloses their financial statements?

✅ Yes, you can view the financial statements of Exness online

Does Exness offer trading software like Meta Trader?

✅ Yes, you can trade on Exness using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading software as well as through their proprietary trading platform .

Does Exness provide a mobile native app?

No, Exness does not provide a native app for mobile. However, you can access the Exness web platform on mobile for trading.

Can you trust OctaFX?

  • OctaFX was founded in 2011.
  • OctaFX does not operate a bank and is not publicly traded.
  • OctaFX is authorised to operate in the 🇪🇺 European Union.

Is OctaFX authorised to operate in the US?

❌ No, OctaFX is not authorised to operate in the United States.

What licenses does OctaFX have to operate?

OctaFX is authorised by the following regulators: CySEC Authorised (Cyprus) and FSCA Authorised (South Africa) .

Does OctaFX publicly discloses their financial statements?

✅ Yes, you can view the financial statements of OctaFX online

Does OctaFX offer trading software like Meta Trader?

✅ Yes, you can trade on OctaFX using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading software as well as through their proprietary trading platform .

Does OctaFX provide a mobile native app?

No, OctaFX does not provide a native app for mobile. However, you can access the OctaFX web platform on mobile for trading.

Can you trust Blackbull?

  • Blackbull was founded in 2014.
  • Blackbull does not operate a bank and is not publicly traded.
  • Blackbull is not authorised to operate in the 🇪🇺 European Union.

Is Blackbull authorised to operate in the US?

❌ No, Blackbull is not authorised to operate in the United States.

What licenses does Blackbull have to operate?

Blackbull is authorised by the following regulators: FMA Authorised (New Zealand) .

Does Blackbull publicly discloses their financial statements?

❌ No, unfortunately Blackbull does not list their financial statements publicly on their website.

Does Blackbull offer trading software like Meta Trader?

✅ Yes, you can trade on Blackbull using MetaTrader 4 (MT4), MetaTrader 5 (MT5) and ZuluTrade trading software as well as through their web trading platform .

Does Blackbull provide a mobile native app?

✅ Yes, you can trade Blackbull on mobile using Mobile App (Android) and Mobile App (iOS).

Can you trust Naga?

  • Naga was founded in 2015.
  • Naga does not operate a bank and is not publicly traded.
  • Naga is not authorised to operate in the 🇪🇺 European Union.

Is Naga authorised to operate in the US?

❌ No, Naga is not authorised to operate in the United States.

What licenses does Naga have to operate?

Naga is authorised by the following regulators: CySEC Authorised (Cyprus) .

Does Naga publicly discloses their financial statements?

❌ No, unfortunately Naga does not list their financial statements publicly on their website.

Does Naga offer trading software like Meta Trader?

✅ Yes, you can trade on Naga using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading software as well as through their proprietary trading platform .

Does Naga provide a mobile native app?

No, Naga does not provide a native app for mobile.

Comparison & Key Differences

Which brokers offer social/copy trading?

The following brokers offer social/copy trading: XM, XTB, Exness, OctaFX, Blackbull and Naga.

Best Brokers for Social/Copy Trading

Which brokers offer cryptocurrency (CFD) trading?

The following brokers offer cryptocurrency (CFD) trading: XM, XTB, Exness, OctaFX and Blackbull.

Best Brokers for Cryptocurrency (CFD)

Which brokers allow scalping?

The following brokers allow scalping: XM, XTB, Exness, OctaFX, Blackbull and Naga.

Best Brokers for Scalping

Which brokers allow hedging?

The following brokers allow hedging: XM, XTB, Exness, OctaFX, Blackbull and Naga.

Best Brokers for Hedging

Which brokers provide Negative Balance Protection?

The following brokers provide Negative Balance Protection: XM, Exness, Blackbull and Naga.

Best Brokers with Negative Balance Protection

Which brokers offer a Demo Account?

The following brokers offer an Demo Account: XM, Exness and Naga.

Best Brokers Offering Demo Accounts

Which brokers offer an Islamic Account?

The following brokers offer an Islamic Account: XM, Exness, OctaFX and Naga.

Best Brokers Supporting Islamic Accounts

What does it matter which licenses a broker has?

Licenses allow brokers like XM, XTB, Exness, OctaFX, Blackbull and Naga to legally provide services in those countries or regions. By having permits from regulators globally, the broker is authorized to conduct business and operate globally.

These licenses and regulations are good for consumers because they hold these companies to high standards.

For example, licenses from:

  • ASIC in Australia,
  • FCA in the United Kingdom,
  • CFTC in the United States,
  • CySEC in Cyprus,
  • FSC in Belize

Require that XM, XTB, Exness, OctaFX, Blackbull and Naga follow rules around:

  • Keeping customer money safe
    Regulators make sure brokers keep client money separate from their own money. This stops brokers from spending customer money.
  • Providing clear fees and charges
    Regulators check that brokers show all fees to customers upfront. This helps customers understand and compare costs.
  • Resolving complaints fairly
    Regulators check brokers are dealing with customer complaints fairly. Brokers must have policies to fix complaints.
  • Guarding against fraud
    Regulators make rules so brokers check customer identities. This helps stop criminal activity. Regulators can punish cheating brokers.
  • Advertising honestly
    Regulators tell brokers what they can and can't say in ads. This stops brokers making false promises. Regulators can fine brokers who break ad rules.

Which brokers are authorised by ASIC, FCA, CFTC and CFTC?

AU's ASIC, UK's FCA and America's CFTC are considered global “gold standards” in rigorous consumer protection laws and enforcement policies.

  • ASIC (AU) Authorised - Only XM is licensed by the ASIC (AU).
  • FCA (UK) Authorised - The following brokers are licensed by the FCA (UK): XM, XTB and Exness.
  • CFTC (US) Authorised - Only XM is licensed by the CFTC (US).

CySEC in Cyprus follows the strict rules set by the European Union called MiFID. These MiFID rules were created to strongly protect investors.

  • CySEC (CY) Authorised - The following brokers are licensed by the CySEC (CY): XM, XTB, Exness, OctaFX and Naga.

Which brokers are not registered with ASIC, FCA or CFTC?

  • Not registered with CFTC (US) - The following brokers are not licensed by the CFTC (US): XTB, Exness, OctaFX, Blackbull and Naga.

    This doesn't necessarily have to be a red flag as some forex brokers make the choice to only have customers who live outside of the United States. They do not accept traders who live inside the U.S. The CFTC is the agency in the U.S. that oversees brokers for U.S. residents. Since these brokers don't have any U.S. customers, the rules and registration enforced by the CFTC does not apply to those brokers. The brokers are still responsible for following the local rules where their international customers live. But they do not have to register specifically with the U.S. agency (CFTC) because they do not serve traders who reside in the United States.

  • Not registered with ASIC (AU) - The following brokers are not licensed by the ASIC (AU): XTB, Exness, OctaFX, Blackbull and Naga.

    Again, even though ASIC is known globally as having the strictest and most feared regulation of forex brokers, this doesn't always have to ring alarms. However, some brokers deliberately avoid Australia because ASIC aggressively examines brokers in detail and has very high standards of acceptable conduct. If ASIC finds brokers are badly mistreating customers or ignoring the strict rules, ASIC will punish them severely without waiting by issuing massive fines or shutting them down. Forex brokers know not to take ASIC rules lightly because ASIC is watching them closely and will come down hard on them if customers are harmed by their poor behavior.

  • Not registered with FCA (GB) - The following brokers are not licensed by the FCA (GB): OctaFX, Blackbull and Naga.

Background Information

Difference between shares, equity indices and , individual stocks and etfs

The main differences between forex, shares, equity indices, individual stocks, and ETFs are:

  • Forex (Foreign Exchange) - Forex trading involves exchanging one currency for another in the foreign exchange market. Forex traders attempt to profit from fluctuations in currency exchange rates.
  • Shares - A share represents part ownership of a company. Owning shares entitles the shareholder to a portion of the company's assets and earnings.
  • Equity Indices - An equity index is a statistical measure of the performance of a basket of stocks representing a portion of the equity market. Examples include the S&P 500 and the Dow Jones Industrial Average. These indices track the overall performance of their underlying group of stocks.
  • Individual Stocks - An individual stock represents ownership in a single company. The return on an individual stock depends solely on that company's performance. Individual stocks carry higher risk but also the potential for higher returns compared to broader indices.
  • ETFs (Exchange Traded Funds) - An ETF is a collection of securities bundled together into a fund that trades on an exchange like a stock. ETFs can contain various asset classes but equity ETFs typically track an equity index, such as the entire stock market or a sector. ETFs offer diversification with the trading aspects of a stock.

Shares and individual stocks represent ownership in a single company, indices track groups of stocks, while ETFs are funds containing assets like stocks or indices that trade as a single security. The level of diversification, risk, and return potential differs across these asset classes.

XM Review
75.33% of retail CFD accounts lose money
XTB Review
81% of retail CFD accounts lose money
Exness Review
OctaFX Review
Blackbull Review
74-89% of retail investor accounts lose money when trading CFDs with this provider.
Naga Review
82.65% of retail investor accounts lose money when trading CFDs with this provider.