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Allow Hedging Forex Brokers

Hedging is one of the smartest yet trickiest strategy to apply in Forex trading.
Hedging frees you from dependency on the market direction, because with hedging you are trading both ways (up and down,or buy and sell).

All Forex brokers nowadays allow and support hedging, except for US based brokers (about which you can read below).The most convenient type of platform for hedging is the one that supports OCO orders (order cancels order). Unfortunately,the popular MT4 platform doesn’t have OCO orders, however MT5 platformdoes. With MT4 however hedging can be simplified with the use of an Expert advisor.
(Example of MT4 hedging EA that uses grid trading: download MT4 hedging EA)

The list of brokers you can still hedge with has been recently reviewed due to the new NFA regulations.
Your can help by suggesting as to which broker we forgot to add/remove from the list.

Forex brokers that allow Hedging

BrokerMinimum DepositMaximum LeverageHedging allowedType
Do you know another Forex broker that supports hedging?
Please suggest by adding a comment below.
10Markets$5500:1yesECN/STP & STP
1BillionForex$5500:1yesECN/STP & STP
24FX$250400:1yesSTP
3TG Brokers$300500:1yesECN/STP & STP
4XNetworks$11000:1yesECN/STP & Market Maker
5StarsForex$500500:1yesDMA/STP
AAAFx $300500:1yesSTP
AAFX Trading$502000:1yesSTP
Abshire-Smith$500100:1yesDMA/STP & Market maker
AccentForex$10500:1yesDMA/STP & Market Maker
ACM Gold$250500:1yesSTP & Market maker
ActivTrades$100400:1yesECN/STP & STP
Admiral Markets$250500:1yesECN/STP & STP
ADS Securities London£1500:1yesECN/STP & STP
Advanced Markets$1100:1yesDMA/STP
AFX Capital$20500:1yesECN/STP & DMA/STP & Market Maker
AGEA$500500:1yesMarket maker
AGM Markets$250200:1yesSTP
AJAJ Group$5400:1yesSTP
Alfa Financial$25000100:1yesSTP
Alpari$1500:1yesECN/STP & STP & Market Maker
Alpha Capital Markets$200400:1yesSTP & Market maker
ALVAST TRADE$100200:1yesECN/STP & STP
AMFX$500400:1yesSTP & Market Maker
AmigaFX$50400:1yesSTP
Araxo4x$100400:1yesECN/STP & DMA/STP & Market maker
AssetsFX$200200:1yesECN/STP & DMA/STP
ATC Brokers$50050:1yesECN/STP & STP
Atom8£5000100:1yesECN/STP & DMA/STP & STP
ATS Markets$50500:1yesSTP & Market maker
AvaFX$100400:1yesMarket maker
Axiory$500500:1yesDMA/STP
AxiTrader$200400:1yesMarket maker
Back Bay Markets $500400:1yesECN/STP & STP & Market mak
BANX Trading $1300:1yesSTP & Market maker
BCapitalsFX$10400:1yesECN/STP & STP
BlackBull Markets $100500:1yesECN/STP
Blackwell Global $2000200:1yesSTP
BMFN – Boston Merchant Financial $50400:1yesSTP
BTFX€250200:1yesECN/STP & STP
Bulls Capital Markets$50500:1yesECN/STP & DMA/STP
Caesar Trade$25500:1yesSTP
Capital Index£1200:1yesSTP
Capital Trust Markets$1400:1yesDMA/STP & STP
CAPPROFX$101000:1yesECN/STP & STP
CFD1000$200400:1yesSTP & Market maker
CFH Clearing$50000100:1yesECN/STP & STP
Charter FX$500200:1yesMarket maker
CIM Bank€500050:1yesECN/STP & STP
Citypoint Trading$500300:1yesMarket maker
CM Trading$250400:1yesSTP & Market maker
CommexFX$5400:1yesECN/STP & STP
ContinentalFX$1000200:1yesSTP
Core Liquidity Markets$250500:1yesECN/STP & DMA/STP
CornerTrade$150:1yesECN/STP & STP
DartTrader$250500:1yesECN/STP & DMA/STP
Deltastock$100200:1yesMarket maker
DenForex$10500:1yesSTP
DF Markets$1200:1yesMarket maker
Direct FX$250400:1yesDMA/STP
DMM FX$200600:1yesSTP
DQFX$100500:1yesDMA/STP & STP
Dukascopy Bank SA$100200:1yesECN/STP
Easy-Forex (non-US accounts)$25400:1yesSTP
EightCap$100400:1yesECN/STP & STP
ELEX$1000200:1yesECN/STP & DMA/STP
Elxi Markets $100400:1yesDMA/STP
ETX Capital$100200:1yesMarket maker
Euro Pacific Bank$1000100:1yesDMA/STP & Market maker
EXNESS$12000:1yesECN/STP & Market maker
FastBrokers (non-US accounts)$250050:1yesECN/STP & Market maker
FBS$12000:1yesDMA/STP & STP
FCMarket$500500:1yesECN/STP
FeelTrade$1300:1yesECN/STP & STP
FIBO Group$300200:1yesECN/STP & Market maker
FIBO Group Holdings$300200:1yesECN/STP & Market maker
Fidelis$500200:1yesECN/STP & DMA/STP
Finexo€100200:1yesMarket maker
FinFX$100200:1yesECN/STP & DMA/STP
FinOdds$2550:1yesECN/STP
Finpro Trading$100200:1yesECN/STP
FIPFX GLOBAL$200400:1yesSTP & Market maker
FirewoodFX$101000:1yesSTP
Forex Broker Inc$100500:1yesECN/STP & STP
Forex FS$100500:1yesDMA/STP
Forex Rally$1001000:1yesSTP & Market maker
Forex-Metal $12000:1yesECN/STP & Market maker
Forex.ee$100500:1yesECN/STP & STP
Forex4you$11000:1yesDMA/STP & STP & Market maker
ForexCT$300400:1yesMarket maker
ForexMart$11000:1yesMarket Maker
ForexYard$100200:1yesMarket maker
FormulaFX$100300:1yesECN/STP & STP & Market maker
Fort Financial$51000:1yesECN/STP & STP
FP Markets$200500:1yesECN/STP & DMA/STP
FreshForex$2001000:1yesECN/STP & STP & Market maker
FW Markets$1500:1yesECN/STP & DMA/STP
FX Choice$100200:1yesECN/STP & Market maker
FX Money World$100400:1yesSTP & Market maker
FX Next$100200:1yesECN/STP
FX-EDGE$200100:1yesECN/STP
FXOpen$1500:1yesECN/STP & Market maker
FxPro $500500:1yesECN/STP & Market maker
FXCC$200300:1yesECN/STP
FXCM (non-US accounts)$2000200:1yesSTP
FXDD (non-US accounts)$1200:1yesECN/STP & Market maker
FXFair$11000:1yesECN/STP & Market maker
FXFlat€200400:1yesMarket maker
FXGM – Forex Global Market$200200:1yesSTP
FxNet$50500:1yesECN/STP & STP
FXOpen UK $300100:1yesECN/STP
FXOptimax$101000:1yesDMA/STP & STP
FXPRIMUS$100500:1yesECN/STP & STP
FXTG (ForexTG)$1000500:1yesECN/STP & STP & Market maker
FXTPG$50500:1yesECN/STP & STP
GAINSY$10500:1yesECN/STP & STP
GCM Forex$100100:1yesECN/STP & Market maker
GCI Financial$500400:1yesECN/STP & STP & Market maker
GCM Forex$100100:1yesECN/STP & Market maker
GDMFX$100500:1yesECN/STP & STP
GIFX$100500:1yesSTP
GKFXPRIME$11000:1yesSTP & Market maker
Global Clearing Group LTD $500500:1yesMarket maker
Global Futures $25050:1yesECN/STP
Global Prime Forex $500200:1yesECN/STP
GO Markets$500300:1yesECN/STP & STP
Golden Tangent$500400:1yesSTP
Goldstein Brokers $100500:1yesDMA/STP
Grand Capital$10500:1yesECN/STP & STP
Hantec Markets$1000200:1yesECN/STP & STP
HighSky Brokers$1200:1yesMarket maker
Hirose Financial UK$1300:1yesSTP
HiWayFX$201000:1yesECN/STP & STP
HeartForex (MT4)$500200:1yesECN/STP & STP
HotForex$51000:1yesSTP
IamFX$500500:1yesDMA/STP
IC Markets$200500:1yesECN/STP & STP
IC Markets Forex Rebates $200500:1yesECN/STP & STP
iClickNTrade$250500:1yesSTP
ICM Capital$200500:1yesECN/STP & Market Maker
IFC Markets$100400:1yesMarket make
iForex$1400:1yesSTP
IG Markets$500400:1yesECN/STP & Market maker
IHI – Investment House International$1000400:1yesMarket maker
IKON Group$100500:1yesECN/STP & STP
IKON Markets$150500:1yesECN/STP & Market maker
IMMFX$30001000:1yesSTP
InstaForex$11000:1yesSTP
Interactive Brokers (non-US accounts)£50040:1yesECN/STP
InterTrader$1400:1yesMarket maker
InterTraderDirect$1800000:1yesECN/STP
Invast$250100:1yesECN/STP
Investorseurope$100400:1yesECN/STP & DMA/STP
InvestTechFX$500500:1yesECN/STP & STP
IronFX$500500:1yesECN/STP & STP & Market maker
IsikFX$100100:1yesSTP
IV Brokers$100500:1yesECN/STP & STP
Juno Markets$500400:1yesSTP
JustForex$12000:1yesECN/STP & STP & Market maker
KAWASE$100500:1yesECN/STP
Key To Markets$100500:1yesECN/STP & DMA/STP
KGI Ong Capital$100050:1yesSTP
KVB Kunlun$100500:1yesSTP
LAND-FX$300500:1yesECN/STP & STP
LiderForex$100200:1yesSTP
LiteForex$101000:1yesSTP & DMA/STP
LMFX$501000:1yesSTP
Lucror FX$50500:1yesSTP
MahiFX$1100:1yesMarket maker
MaxFX$200500:1yesSTP
MAYZUS$100400:1yesECN/STP & STP & Market maker
MBCFX$1000200:1yesSTP
MFX Broker$11000:1yesECN/STP & Market maker
MTN-FX$1400:1yesSTP
MTI Markets$1001000:1yesECN/STP & STP
MTrading$11000:1yesECN/STP & STP
MXT Global$100500:1yesECN/STP & STP
NAS Broker$11000:1yesDMA/STP & Market maker
Nexsus Financial Markets$250400:1yesECN/STP & Market maker
NewForex$11000:1yesMarket maker
NimrodFX$100400:1yesECN/STP & STP
NoaFX$10500:1yesSTP
NorFX$51000:1yesECN/STP & STP
Nova FX Trading$1001000:1yesSTP
NSFX$300200:1yesECN/STP & STP
OANDA (non-US accounts)$150:1yesMarket maker
OctaFX$5500:1yesDMA/STP
OloFx$100500:1yesDMA/STP
One Financial Markets$250400:1yesDMA/STP & Market maker
Orbex$500500:1yesECN/STP & Market maker
Pacific Financial Derivatives (PFD-NZ)$1300:1yesECN/STP & STP
PaxForex$10500:1yesSTP + Market maker
Pepperstone$200400:1yesECN/STP & DMA/STP
PCM Brokers$100400:1yesSTP
PhillipCapital$200100:1yesECN/STP
PhillipCapital UK$1500200:1yesSTP
Price Markets$500400:1yesECN/STP & Market maker
Profiforex$5500:1yesSTP
Real ECN$100400:1yesECN/STP
Real-Forex$2000200:1yesECN/STP & DMA/STP
Real Trade Group$20500:1yesMarket maker
Renesource Capital$10100:1yesECN/STP & DMA/STP
Royal Forex Trading$1000400:1yesECN/STP & Market Maker
RoboForex$11000:1yesECN/STP & DMA/STP & Market maker
Rubix FX$500100:1yesECN/STP
Ruizean Trader$200400:1yesECN/STP & STP
SaudiQuote$10000100:1yesECN/STP & STP
Saxo Bank$1000050:1yesMarket maker
Sensus Capital Markets€1000500:1yesECN/STP & STP
SimpleFX$1500:1yesSTP & Market maker
SkyFX$500300:1yesSTP & Market maker
Smart Markets$1400:1yesMarket Maker
SmartTradeFX$1300:1yesECN/STP
Solforex
$50400:1yesECN/STP
Sterling Gent Trading$50400:1yesECN/STP & DMA/STP
STOCK.com$250200:1yesSTP
StoxMarket$1000500:1yesSTP
Sunbird$1000300:1yesECN/STP & DMA/STP
Super Hot Forex$200500:1yesECN/STP & STP
SVSFX$1400:1yesSTP
Swiss International Financial Brokerage K.S.C.$500200:1yesECN/STP & Market maker
Sword Capital$100500:1yesSTP & Market maker
Tallinex$1001000:1yesECN/STP & STP
TaipeiFX$1000033:1yesSTP
TeleTrade$1100:1yesSTP & Market maker
TFI Markets$500100:1yesMarket maker
TFX Markets$50500:1yesECN/STP & STP
ThinkForex$250500:1yesECN/STP & DMA/STP
Tickmill$25500:1yesECN/STP & STP
Tifia$100400:1yesECN/STP
Titan FX$200500:1yesECN/STP & STP
Trade12$250400:1yesSTP
TradeFxP$25500:1yesECN/STP & STP
Tradenext$100300:1yesSTP & Market maker
Trader's Way$11000:1yesECN/STP & DMA/STP & Market maker
Traders Trust$100500:1yesSTP
Trading 212$150200:1yesSTP
TradingBanks$250400:1yesSTP
TradingForex.com$100200:1yesECN/STP
Tradeview
$100400:1yesECN/STP & DMA/STP
TradeWiseFX$25500:1yesECN/STP & STP
Tradize$1001000:1yesECN/STP & STP
TrioMarkets$100300:1yesECN/STP & STP
Trust Capital$250400:1yesSTP
UFX$500400:1yesSTP
UpFX$100300:1yesDMA/STP & STP
V2FX$100500:1yesSTP
Valbury Capital$5000100:1yesDMA/STP
Valutrades$100400:1yesSTP
Vantage FX$100500:1yesECN/STP & STP
Varengold Bank FX$1200:1yesSTP & Market maker
Velocity Trade$1000100:1yesDMA/STP
Victory International Futures$5000100:1yesMarket maker
Vinson Financials$200500:1yesSTP & Market maker
Vomma$10500:1yesSTP
Vunani Private Clients$500100:1yesDMA/STP & STP
Windsor Brokers$250500:1yesSTP & Market maker
XM$5888:1yesMarket maker
XForex$100400:1yesMarket maker
XGLOBAL Markets$500200:1yesDMA/STP & STP
XTB UK$120:1yesSTP & Market maker
YouTradeFX$500500:1yesECN/STP & Market maker

Starting form May 15, 2009 new NFA (National futures Association) Rule 2-43(b) will completely ban the use of hedging for traders who trade with US brokerage firms regulated by NFA.

This New Compliance Rule 2-43(b) requires an FDM (Forex Dealer Members) to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as “hedging.”

What is Hedging?

Hedging is a strategy used to minimize the risk of an reverse price movement against one or several of your open positions. For example, a trader who has a large trading position – Long 50 lots EURUSD, might decide to hedge a portion of his position by shorting 30 lots of the EURUSD. Now, in the case of an adverse or volatile price movement, a portion of the loss on the long side will be offset by the gain on the short.

However, per the new NFA rule, a trader will no longer be able to hedge a position. Instead of simultaneously holding both positions, he will now need to close out those 30 lots. Thus, rather than being long 50 lots EURUSD and short 30 lots EURUSD, he will now be simply long 20 remaining lots.

Why Hedge?

Hedging is seen as a safety net for many Forex traders. Should the market move against them, the impact on the trading account will be less severe than if they had held the position un-hedged. Another important thing to consider is that many Metatrader EAs are programmed to use hedging to offset risk. If you are using one of these trading robots it is very possible that the hedging ban will drastically increase the risk of your EA. For those who bought EAs, it would be wise to contact your EA vendor to find out if any type of hedging is used, and how this ban will effect the EA…

Another reason why hedging can be beneficial, is due to the extreme volatility that can often be found in certain trading periods.Specifically, when when the market first opens on Sunday evening or during news announcements, prices can spike drastically in either direction. It can be difficult to get out of a trade as the spreads tend to widen out. By placing a hedge before these volatile times, you may reduce the effect of volatility since you have a position in both directions.This can be beneficial because it allows you to keep your positions open without the fear of being stopped out.

How to Get Around this Hedging Ban

To continue hedging with NFA regulated brokers, a trader now needs to open 2 accounts with the same one or different brokers. Then he will simple Short a currency pair on one account and Long it on another account hence getting the same hedging effect. The only trouble this time would be:you’ll need to put some more net capital into two new accounts, or at the very least to be prepared to swiftly transfer cash on a regular basis from an account that is showing a healthy profit to one where the trade is experiencing a significant drawdown.

For traders who are dependent on EAs that use hedging heavily and do not want to change trading tactics, there is also an option to consider a broker, who is not regulated with NFA, or simply a broker outside US.

InstaForex

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