Best Hedging Forex Brokers 2023

For this list, we have searched and tested several hedging forex brokers.

We opened real accounts and deposited between $4,000 and $8,000 with each broker. Further, we placed real trades in each popular market to get the actual picture.

We also contacted the customer support team to see whether they are able to solve the problems we had faced.

We handpicked the best hedging forex brokers based on our trading data and experience.

What is Hedging in Forex Trading?

Hedging with forex is commonly used more as a protection strategy, and not as a main trading strategy. It is mainly used to protect the trader’s position from a disadvantageous move. 

Most often Hedging is used as a short-term protection when the trader is worried about the market volatility.

There are several types of hedging. For instance, one of the most common types is taking an opposite position in the same currency pair. This can look like USD/EUR vs EUR/USD.

A number of financial risks can be protected by hedging, such as commodity risks, currency risks, volatility risks, etc. Read more about hedging. 

Forex Hedging Calculator

For risk management and successful hedging it is advisable to use a Hedging Calculator for the purpose of counting the exact trading size.

A hedging calculator can allow the traders to find the specific amount that is harmless to stake on the hedge bet. This way, they can return the same amount regardless of the end result. 

In case the odds are in the favor of the trader, the hedging calculator provides a guaranteed profit. To the contrary, if things are not favorable, it can help to limit the possible losses.  

Is Hedging in Forex illegal?

Hedging in forex is generally legal and is seen as a legal trading strategy.

A great number of brokers around the world (EU, Australia, Asia) consider hedging legal. On the other hand, Brokers in the US do not normally allow hedging, as it is against the regulations. Also, there are some brokers worldwide that do not allow hedging due to the company rules.

The reason why some brokers ban hedging is the almost double costs of trading. Mostly, hedging is seen as a low-risk strategy that does not contain either great profits or losses. 

Forex Hedging Software

As a strategy, Hedging can be traded manually or use automated tools or software like Hedging EA Robots, signals for hedging purposes.

Hedging robots, for instance, can be easily installed in the computer. Afterwards, traders just need to load it on the preferable number of currency pairs and the rest will be performed automatically.

The robots are capable of trading an unlimited amount of currencies at the same time. Automated tools help to operate trading almost without the trader’s interference.  Read more about automated trading.

Best Forex Brokers for Hedging

When choosing a broker for your trades, it is rather advisable to be extremely careful whether the broker allows hedging or not. Sometimes, brokers can allow the hedging strategy, yet the use of the strategy may be restricted. For this, be careful, whether the broker you choose has the tools you need.

To help the traders orient which are the most trustworthy hedging forex brokers, we have come up with a list.

Based on our trading experience and the collected data, here are the Best Hedging Forex Brokers:

• IC Markets
• FXTM
• Tickmill
• Admiral markets

There are also Regulated brokers with excellent offerings that DO NOT allow Hedging or offer with certain restrictions. Among them are:

• eToro
• Plus500
• GKFX

Best Overall Forex Hedging Broker

We have picked IC Markets as the best hedging forex broker.

Founded in 2007 IC Markets is a Forex and CFDs broker, headquartered in Australia. The broker holds licenses in Australia, Cyprus, Seychelles and the Bahamas.

IC Markets offers a great number of instruments in Forex pairs, indices, stocks, commodities and cryptocurrencies. The fees charged for trading Forex pairs, indices, commodities and cryptocurrencies are considerably lower than industry averages. The spreads charged on stock trades are close to the industry benchmark.

IC Markets offers 4 account types: the standard account, cTrader raw spread account, the raw spread account, and the Islamic account. Also, the broker offers swap-free Islamic Accounts to its Muslim clients. 

As to the trading platforms, IC Markets offers both MT4 and MT5 platforms, also cTrader platform.

Best Hedging Forex Broker for Beginners

FXTM, also referred to as ForexTime, was founded in 2011. It is headquartered in Cyprus and is regulated in several jurisdictions such as the United Kingdom, Cyprus, South Africa, and Mauritius.

FXTM offers a wide range of instruments in forex pairs, indices, commodities, stocks, cryptocurrencies, spot metals, and also real stocks.

FXTM fees are built into the spreads but vary depending on the account types. Based on the trades with a standard account, FXTM spreads for forex and commodities are slightly higher than the industry benchmark.

FXTM is suitable for beginners as it offers a great number of educational materials: eBooks and trading guides, webinars, seminars, a forex glossary, video tutorials on trading. 

FXTM also offers excellent market research tools that come in handy for the traders. 

Best Forex Hedging EA MT4 Broker

We have picked Tickmill as the best forex hedging EA MT4 broker.

Tickmill is a global Forex and CFDs broker. It was founded in 2014. Headquartered in London, it holds licenses in the UK, Cyprus, South Africa, Seychelles, and Labuan (Malaysia).

In our testing with the broker we revealed that the spreads on stock indices is quite low, but the spreads on Forex and commodities are in-line with or slightly lower than the industry averages.

For those traders who prefer to conduct their trading through the popular MT4 platform, Tickmill is an excellent choice. 

Best Low Spread Hedging Forex Broker

We have picked Admiral markets as the best low spread hedging forex broker.

Admiral Markets was founded in 2001. It is a global Forex and CFDs broker licensed in Australia, the United Kingdom, Cyprus, and Estonia.

Admiral Markets offers a vast number of instruments to traders in Forex pairs, indices, stocks, commodities and cryptocurrencies. Admiral Markets charges very low fees for its main instruments. Based on our tests, Admiral Market’s average spreads for the popular instruments are much lower than industry averages.

Hedging Forex Brokers List

Here is a hedging forex brokers list. We have tested and reviewed all of the brokers included in this list.

Forex Broker	Test Details	Broker Review
FxPro	Deposit Amount: Over €5,000 Total Trade: 15 trades	FxPro Review
Admiral Markets	Deposit Amount: Over €4,000 Total Trade: 12 trades	Admiral Markets Review
FXTM	Deposit Amount: Over €6,000 Total Trade: 12 trades	FXTM  Review
Tickmill	Deposit Amount: Over $8,000 Total Trade: 12 trades	Tickmill Review
CMC Markets	Deposit Amount: Over €5,000 Total Trade: 12 trades	CMC Markets Review
IC Markets	Deposit Amount: Over €5,000 Total Trade: 12 trades	IC Markets Review
Pepperstone	Deposit Amount: Over €6,000 Total Trade: 12 trades	Pepperstone Review
Markets.com	Deposit Amount: Over €4,000 Total Trade: 12 trades	Markets.com Review
Amana Capital	Deposit Amount: Over €5,000 Total Trade: 12 trades	Amana Capital Review
GO Markets	Deposit Amount: Over €4,000 Total Trade: 12 trades	GO Markets Review
ActivTrades	Deposit Amount: Over €5,000 Total Trade: 12 trades	ActivTrades Review
BlackBull Markets	Deposit Amount: Over €4,000 Total Trade: 12 trades	BlackBull Markets Review
ICM Markets	Deposit Amount: Over €5,000 Total Trade: 12 trades	ICM Markets Review
Capital.com	Deposit Amount: Over €3,500 Total Trade: 15 trades	Capital.com Review
Dukascopy	Deposit Amount: Over €4,000 Total Trade: 15 trades	Dukascopy Review

FAQ and More on Forex Brokers that allow Hedging

Traders usually have many questions on generic trading-related queries. We tried to pick and answer some of the most essential queries related to forex brokers that allow hedging.

Hedging Account Forex Demo

In order to avoid any future complications, it is better to check whether the brokers allow hedging or not. Moreover, it is really advisable to test on a Demo account, if the brokers give you such an opportunity. 

Altogether, a demo account gives the traders a number of advantages:

• A demo accounts helps to see the development of the price and foresee the risks in leverage
• It gives some inside to the brokers trading conditions
• Through a demo account the traders can develop their trading strategies

Forex Hedging USA

There is no US Forex Broker that allows hedging. Hedging is restricted as a trading strategy due to US regulations.

The traders in the US are barred from hedging on a legal basis. Worse, they are not even allowed to open accounts with any overseas broker. This way, they are prevented from applying hedging strategies in Forex altogether. 

Brokers that allow Hedging in UK

There are a number of brokers in the UK that allow traders to use hedging strategies. However, it is of utmost importance to be extremely careful in picking a well-regulated broker with favorable hedging conditions.

We have tested a number of UK brokers and have come up with the list of the best hedging forex brokers in the UK.

• FXTM
• CMC Markets
• FxPro