10 Best Hedging Forex Brokers

Edited by: Candice Barnes

Best Hedging Forex Brokers Main

 

We have listed the 10 Best Hedging Forex Brokers that allow traders to manage risk effectively across various currency pairs and assets. These brokers offer advanced hedging tools, tight spreads, and solid regulation, ensuring both beginners and professionals can protect their positions and trade with greater confidence.

 

10 Best Hedging Forex Brokers (2025)

 

  1. MultiBank Group – Overall, The Best Hedging Forex Broker
  2. Pepperstone – Tight spreads and fast execution
  3. FP Markets – Multiple advanced trading platforms
  4. BlackBull Markets – Low spreads from 0.0 pips on certain accounts
  5. AvaTrade – Unique risk management tool, AvaProtect
  6. IG – User-friendly and powerful trading platforms
  7. Saxo Bank – Strong regulatory protection
  8. CMC Markets – Award-winning Next Generation trading platform
  9. City Index – High-quality customer support
  10. IC Markets – Ultra-fast execution with a No Dealing Desk (NDD) model

 

Top 10 Forex Brokers (Globally)

 

 

1. MultiBank Group

 

★★★★
Minimum Deposit: $50
Regulated by: AUSTRAC, BAFIN, CIMA, ESCA, CySEC, FSC, FMA, MAS, TFG, VFSC
Crypto: Yes

 

MultiBank Group is a legit forex broker that supports hedging, allowing traders to open multiple positions in the same currency pair to manage risk effectively. Regulated in multiple jurisdictions, MultiBank Group offers tight spreads, advanced trading platforms, and strong financial security, making it a reliable choice for hedging strategies.

 

BrokerMultiBank Group
Regulation🇦🇺 ASIC/AUSTRAC
🇩🇪 BaFin
🇦🇪 ESCA
🇨🇾 CySEC
🇲🇺 FSC
🇸🇬 MAS
🇻🇺 VFSC
🇰🇾 CIMA
🇦🇹 FMA
🇨🇳 TFG
🇸🇨 FSA
🇲🇳 FSCM
🇦🇪 VARA
🇪🇪 FIU
Minimum Deposit50 USD
Spreads From0.0 pips
CommissionsNone
Swap FeesYes
LeverageUp to 1:500
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
MultiBank-Plus
Proprietary
platforms/tools
CFDs Total20,000 +
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

MultiBank Group Hedging

 

Frequently Asked Questions

 

Is MultiBank Group authorized to offer hedging?

Yes, MultiBank Group, through its various regulated entities, is authorized to offer hedging. Their trading conditions explicitly state that hedging positions (trading long and short on the same instrument) is enabled on their platforms.

 

Which platforms support hedging with MultiBank Group?

MultiBank Group’s trading platforms, including the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5), are confirmed to support hedging positions. Their proprietary MultiBank WebTrader and MultiBank-Plus platforms also enable this trading style.

 

★★★★
Minimum Deposit: $50
Regulated by: AUSTRAC, BAFIN, CIMA, ESCA, CySEC, FSC, FMA, MAS, TFG, VFSC
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Authorized and regulatedHigh minimum deposit
for some account
types
Supports full hedging
on MT4 and MT5
platforms
Limited educational
resources for
beginners
Tight spreads and fast
execution
Inactivity fees may apply
Strong risk
management and fund
security
Customer support
response can vary
Wide range of tradable
assets
Not available in all
countries

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐☆
2Range of Investments, Platforms and Tools⭐⭐⭐⭐⭐
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐☆☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐☆
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐⭐
9Risk Management and Safety Measures⭐⭐⭐⭐☆
10Markets Analysis and Trading Tools⭐⭐⭐⭐☆

 

Our Insights

MultiBank Group is an authorized forex broker offering full hedging capabilities, tight spreads, and strong regulation. Ideal for traders seeking advanced risk management tools, it provides secure trading environments across global financial markets.

 

2. Pepperstone

 

★★★★★
Minimum Deposit: $200
Regulated by: ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Crypto: Yes

 

Pepperstone is a regulated forex and CFD broker that fully supports hedging on all account types. This means traders can open both buy and sell positions on the same instrument to manage risk or lock in their market exposure, without incurring any extra fees beyond standard trading costs.

 

BrokerPepperstone
Regulation🇦🇺 ASIC
🇬🇧 FCA
🇨🇾 CySEC
🇩🇪 BaFin
🇦🇪 DFSA
🇰🇪 CMA
🇧🇸 SCB
Minimum Deposit0 USD
Spreads From0.0 pips
CommissionsYes
Swap FeesYes
LeverageUp to 500:1
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
TradingView
Pepperstone’s own
platform
Myfxbook
DupliTrade
CFDs Total1,200+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

Pepperstone Hedging

 

Frequently Asked Questions

 

Does Pepperstone charge extra fees for hedging?

No, Pepperstone does not charge extra fees specifically for hedging. The costs are limited to the standard trading fees, which include spreads and, for Razor accounts, a commission. Swap fees apply for positions held overnight, including hedged ones.

 

Can beginners use hedging with Pepperstone?

Yes, beginners can use hedging on Pepperstone as it is fully supported. However, hedging is an advanced strategy. Beginners should first practice risk management on a demo account and fully understand the implications of opening opposing positions.

 

★★★★★
Minimum Deposit: $200
Regulated by: ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Legit and well-regulatedNo proprietary trading
platform
Full hedging support
on MT4, MT5, and
cTrader
Limited range of
account types
Tight spreads and low
trading costs
Some features
restricted by region
Fast trade execution
with minimal slippage
Overnight swap
charges may apply
Strong customer
service and
educational resources
No fixed spread option

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐☆
2Range of Investments, Platforms and Tools⭐⭐⭐⭐☆
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐☆☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐☆
7Deposit and Withdrawal Option⭐⭐⭐☆☆
8Execution Speed and Order Types⭐⭐⭐⭐⭐
9Risk Management and Safety Measures⭐⭐⭐⭐☆
10Markets Analysis and Trading Tools⭐⭐⭐☆☆

 

Our Insights

Pepperstone is a legit forex broker offering full hedging support, tight spreads, and fast execution. Ideal for traders seeking flexibility and transparency, it combines advanced tools with trusted regulation for secure global trading.

 

3. FP Markets

 

★★★★★
Minimum Deposit: $100
Regulated by: ASIC, CySEC, FSCA, FSA, FSC, CMA
Crypto: Yes

 

FP Markets is a regulated forex and CFD broker that permits hedging strategies. Traders can open opposite positions on the same instrument for risk management. Crucially, no extra charges are applied for hedging beyond the regular trading costs.

 

BrokerFP Markets
Regulation🇦🇺 ASIC
🇨🇾 CySEC
🇸🇨 FSA
🇿🇦 FSCA
🇲🇺 FSC
🇻🇨 SVG
Minimum Deposit100 USD
Spreads From0.0 pips
CommissionsYes
Swap FeesYes
LeverageUp to 1:500
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
IRESS
CFDs Total10,000+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

FP Markets Hedging

 

Frequently Asked Questions

 

Is FP Markets legal and allowed to offer hedging?

Yes, FP Markets, as a multi-regulated broker, is legally allowed to offer hedging strategies. It explicitly states that traders can use hedging to manage risk by opening offsetting positions without extra charges.

 

Are there extra fees for hedging trades at FP Markets?

No, FP Markets does not charge extra fees specifically for hedging trades. You will only incur the standard costs of the two separate trades, which include the spread and, for a Raw account, the commission. Over-night swap fees may also apply.

 

★★★★★
Minimum Deposit: $100
Regulated by: ASIC, CySEC, FSCA, FSA, FSC, CMA
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Legal and well-regulatedSome withdrawal fees
and higher costs for
certain instruments
Supports hedging
strategies for forex
and CFD trading
Trading conditions vary
Wide selection of
platforms (MT4, MT5,
cTrader) and assets
Stock CFD availability
may be limited outside
Australia
Competitive spreads
and fast execution
Higher minimum
deposit
Strong risk
management policies
including hedging of
holdings
Underlying hedging
policy may differ
based on instrument

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐⭐
2Range of Investments, Platforms, and Tools⭐⭐⭐⭐⭐
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐⭐☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐⭐
7Deposit and Withdrawal Option⭐⭐⭐⭐⭐
8Execution Speed and Order Types⭐⭐⭐⭐⭐
9Risk Management and Safety Measures⭐⭐⭐⭐⭐
10Markets Analysis and Trading Tools⭐⭐⭐⭐⭐

 

Our Insights

FP Markets is a legal and well-regulated broker that supports hedging strategies, offering robust platforms, tight spreads and broad asset access. It’s a strong option for traders seeking flexibility and risk-management capability in their strategies.

 

Top 3 Hedging Forex Brokers – MultiBank Group vs Pepperstone vs FP Markets

 

FeatureMultibank SmallPepperstone SmallFP Markets Small
Hedging AllowedYesYesYes
Regulation🇦🇺 ASIC/AUSTRAC
🇩🇪 BaFin
🇦🇪 ESCA
🇨🇾 CySEC
🇲🇺 FSC
🇸🇬 MAS
🇻🇺 VFSC
🇰🇾 CIMA
🇦🇹 FMA
🇨🇳 TFG
🇸🇨 FSA
🇲🇳 FSCM
🇦🇪 VARA
🇪🇪 FIU
🇦🇺 ASIC
🇬🇧 FCA
🇨🇾 CySEC
🇩🇪 BaFin
🇦🇪 DFSA
🇰🇪 CMA
🇧🇸 SCB
🇦🇺 ASIC
🇨🇾 CySEC
🇸🇨 FSA
🇿🇦 FSCA
🇲🇺 FSC
🇻🇨 SVG
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
MultiBank-Plus
Proprietary
platforms/tools
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
TradingView
Pepperstone’s own
platform
Myfxbook
DupliTrade
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
IRESS
Minimum Deposit50 USD0 USD100 USD
SpreadsFrom 0.0 pips on ECN
accounts.
From 0.0 pips on Razor
accounts.
From 0.0 pips on Raw
ECN accounts.
Maximum LeverageUp to 1:500 (varies by
region).
Up to 1:500 (varies by
regulation).
Up to 1:500 (varies by
region).
Hedging Policy DetailsSupports opposing
positions with
independent margin.
Allows full hedging;
margin applied to
largest leg only.
Supports hedging with
no margin penalty on
opposite trades.
Best ForActive traders seeking
deep liquidity.
Scalpers and
algorithmic traders
needing speed.
Traders wanting
flexibility and
competitive spreads.
Trade NowOpen AccountOpen AccountOpen Account

 

Top 3 Forex Brokers

 

4. BlackBull Markets

 

★★★★
Minimum Deposit: $0
Regulated by: FMA
Crypto: Yes

 

BlackBull Markets, a legal and regulated forex broker, explicitly permits hedging. Traders can manage risk by opening opposite positions on the same instrument across their platforms, incurring no extra fees specifically for the hedging itself.

 

BrokerBlackBull Markets
Regulation🇳🇿 FMA
🇸🇨 FSA
Minimum Deposit0 USD
Spreads From0.0 pips
CommissionsYes
Swap FeesYes
LeverageUp to 1:500
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
TradingView
CFDs Total26,000+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesNone
Broker ReviewRead Review
Trade NowOpen Account

 

BlackBull Markets Hedging

 

Frequently Asked Questions

 

Is BlackBull Markets an approved broker for hedging?

Yes, BlackBull Markets is an approved and regulated broker that allows hedging. It explicitly permits traders to use hedging strategies, such as opening opposite positions on the same instrument for risk management.

 

Which trading platforms support hedging with BlackBull Markets?

BlackBull Markets supports hedging on its primary platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView. These platforms facilitate risk management strategies like opening opposite positions on the same instrument.

 

★★★★
Minimum Deposit: $0
Regulated by: FMA
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Approved and regulatedLimited educational
materials for beginners
Full hedging support
on MT4 and MT5
Customer service not
24/7
Tight spreads and low
trading costs
No proprietary trading
platform
Fast execution and
deep liquidity
Withdrawal fees may
apply on certain
methods
Suitable for both retail
and professional
traders
Limited product range
outside forex and
CFDs

 

Our Insights

BlackBull Markets is an approved and regulated broker that fully supports hedging on MT4 and MT5. With competitive spreads and fast execution, it’s ideal for traders seeking flexibility and effective risk management solutions.

 

5. AvaTrade

 

★★★★★
Minimum Deposit: $100
Regulated by: CBI, BVI, FSC, ASIC, FSCA, JFSA, FFAJ
Crypto: Yes

 

AvaTrade is an authorized, regulated broker that allows hedging, enabling traders to hold simultaneous long and short positions on the same instrument. This feature is available on MT4, MT5, and other platforms with no additional hedging-specific fees.

 

BrokerAvaTrade
Regulation🇮🇪 CBI
🇻🇬 BVI FSC
🇦🇺 ASIC
🇿🇦 FSCA
🇯🇵 JFSA
🇦🇪 ADGM FSRA
🇮🇱 ISA
🇵🇱 KNF
Minimum Deposit100 USD
Spreads From0.9 pips
CommissionsNone
Swap FeesYes
LeverageUp to 1:400
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
WebTrader
AvaTradeGO
AvaOptions
AvaSocial
DupliTrade
AvaProtect
CFDs Total1,250+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

AvaTrade Hedging

 

Frequently Asked Questions

 

Which platforms support hedging with AvaTrade?

AvaTrade supports hedging on its primary platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), WebTrader, and the AvaTradeGO mobile app, allowing simultaneous long and short positions.

 

Are there extra fees for hedging with AvaTrade?

No, there are typically no extra hedging-specific charges with AvaTrade. However, standard trading costs like spreads, and potential overnight swap fees on positions held past the end-of-day still apply to both legs of the hedge.

 

★★★★★
Minimum Deposit: $100
Regulated by: CBI, BVI, FSC, ASIC, FSCA, JFSA, FFAJ
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Registered and regulatedLimited leverage
options for some
regions
Full hedging support
across MT4, MT5, and
AvaTradeGO
Inactivity fees may apply
User-friendly platforms
for beginners and
professionals
Customer support not
available 24/7 in all
languages
Fixed and variable
spread account
options
No raw spread ECN
account
Strong investor
protection and fund
security
Limited advanced
features for
algorithmic traders

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐☆
2Range of Investments, Platforms and Tools⭐⭐⭐⭐☆
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐⭐☆
5Mobile Trading and User Experience⭐⭐⭐⭐⭐
6Customer Support and Regulatory Compliance⭐⭐⭐⭐⭐
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐☆
9Risk Management and Safety Measures⭐⭐⭐⭐⭐
10Markets Analysis and Trading Tools⭐⭐⭐⭐☆

 

Our Insights

AvaTrade is a registered and trusted forex broker offering full hedging capabilities on multiple platforms. With tight spreads, strong regulation, and user-friendly tools, it’s ideal for traders seeking controlled and flexible risk management.

 

6. IG

 

★★★
Minimum Deposit: $250
Regulated by: FCA, ASIC, CFTC, NFA, BaFin
Crypto: Yes

 

IG, an authorized and regulated broker, allows hedging where traders can hold simultaneous long and short positions on the same instrument. This capability is enabled on their platforms using the “force-open” feature.

 

BrokerIG
Regulation🇬🇧 FCA
🇩🇪 BaFin
🇨🇭 FINMA
🇺🇸 CFTC/NFA
🇦🇺 ASIC
🇳🇿 FMA
🇸🇬 MAS
🇯🇵 FSA
🇿🇦 FSCA
🇦🇪 DFSA
Minimum Deposit250 USD
Spreads From0.6 pips
CommissionsNone
Swap FeesYes
LeverageUp to 1:30
Trading PlatformsWeb platform
Mobile apps
MetaTrader 4 (MT4)
ProRealTime
Advanced L2 Dealer
CFDs Total17,000+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

IG Hedging

 

Frequently Asked Questions

 

Is IG an authorized broker for hedging?

Yes, IG is an authorized and regulated broker for hedging. It is overseen by top-tier global regulators (like the FCA, CFTC, and ASIC) and provides the necessary platforms and features, such as “force-open,” to implement hedging strategies.

 

Which platforms support hedging with IG?

IG’s proprietary trading platform (web, desktop, and mobile app) supports hedging via the “force open” function. Hedging is also possible on their MetaTrader 4 (MT4) platform, and through the L2 Dealer platform.

 

★★★
Minimum Deposit: $250
Regulated by: FCA, ASIC, CFTC, NFA, BaFin
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Authorized and regulatedMinimum deposit can
be higher than some
brokers
Full hedging support
using the “force-open”
feature
Limited leverage for
retail clients
Advanced trading
tools and analytics
Inactivity fees apply
after prolonged
dormancy
Tight spreads and fast
execution
Fewer account types
than competitors
Excellent educational
and research resources
No hedging allowed
under certain regional
entities

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐⭐
2Range of Investments, Platforms and Tools⭐⭐⭐⭐⭐
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐⭐⭐
5Mobile Trading and User Experience⭐⭐⭐⭐⭐
6Customer Support and Regulatory Compliance⭐⭐⭐⭐⭐
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐☆
9Risk Management and Safety Measures⭐⭐⭐⭐⭐
10Markets Analysis and Trading Tools⭐⭐⭐⭐⭐

 

Our Insights

IG is an authorized, well-regulated broker offering hedging through its “force-open” feature. With powerful platforms, tight spreads, and strong global oversight, IG provides traders reliable tools for strategic risk management and position protection.

 

7. Saxo Bank

 

★★★★
Minimum Deposit: $0
Regulated by: FSA, FCA
Crypto: Yes

 

Saxo Bank is an authorised and globally-regulated broker that allows hedging, enabling traders to take offsetting positions (long and short) on the same instrument or use options strategies to manage risk.

 

Broker ReviewSaxo Bank
Regulation🇩🇰 DFSA
🇬🇧 FCA
🇨🇭 FINMA
🇸🇬 MAS
🇦🇺 ASIC
🇫🇷 ACPR
🇮🇹 CONSOB
🇯🇵 FSA
🇭🇰 SFC
Minimum Deposit0 USD
Spreads From0.4 pips
CommissionsYes
Swap FeesYes
LeverageUp to 1:30
Trading PlatformsSaxoTraderGO
SaxoTraderPRO
CFDs Total9,000+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

Saxo Bank Hedging

 

Frequently Asked Questions

 

Is Saxo Bank a legit broker for hedging?

Yes, Saxo Bank is a highly legitimate and safe broker. It is a licensed Danish investment bank, regulated in multiple tier-1 jurisdictions, and it actively supports and provides tools for clients to implement various hedging strategies.

 

Does Saxo Bank charge extra fees for hedging?

Saxo Bank doesn’t charge a distinct “hedging fee,” but implementing a hedge involves standard trading costs. You will incur the usual commissions, spreads, and potentially financing/overnight fees for the two opposing positions or derivatives used to create the hedge.

 

★★★★
Minimum Deposit: $0
Regulated by: FSA, FCA
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Legit and strongly
regulated
Limited leverage
options for retail
traders
Advanced platforms
(SaxoTraderGO and
PRO) with professional
tools
Platform best suited for
experienced traders
Supports complex
hedging and risk
management
strategies
Inactivity and custody
fees may apply
Wide range of global
markets and
instruments
Customer support not
24/7 in all languages

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐⭐
2Range of Investments, Platforms and Tools⭐⭐⭐⭐⭐
3Commissions, Fees, and Bonus Offers⭐⭐⭐☆☆
4Research and Education⭐⭐⭐⭐☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐☆
7Deposit and Withdrawal Option⭐⭐⭐☆☆
8Execution Speed and Order Types⭐⭐⭐⭐⭐
9Risk Management and Safety Measures⭐⭐⭐⭐⭐
10Markets Analysis and Trading Tools⭐⭐⭐⭐⭐

 

Our Insights

Saxo Bank is a legit, globally regulated broker offering advanced hedging capabilities on professional platforms. Ideal for serious traders, it provides deep liquidity, powerful tools, and broad market access for effective risk management and portfolio control.

 

8. CMC Markets

 

★★★★★
Minimum Deposit: $0
Regulated by: BaFin, FCA, ASIC, MAS, FMA, IIROC, DFSA
Crypto: Yes

 

CMC Markets is a globally authorized and regulated broker that allows traders to employ hedging strategies. You can manage market exposure (like currency or commodity risk) by simultaneously holding long and short positions or by using derivatives such as CFDs and forward contracts.

 

BrokerCMC Markets
Regulation🇬🇧 FCA
🇩🇪 BaFin
🇨🇦 IIROC/CIRO
🇦🇺 ASIC
🇳🇿 FMA
🇸🇬 MAS
🇦🇪 DFSA
🇦🇹 FMA
🇨🇳 NFRA
Minimum Deposit0 USD
Spreads From0.3 pips
CommissionsYes
Swap FeesYes
LeverageUp to 500:1
Trading PlatformsNext Generation
MetaTrader 4 (MT4)
CFDs Total9,800+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

CMC Markets Hedging

 

Frequently Asked Questions

 

Which platforms support hedging with CMC Markets?

CMC Markets supports hedging on its proprietary Next Generation web platform, the mobile app, and through the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. It also integrates with TradingView.

 

Does CMC Markets charge extra for hedging trades?

CMC Markets does not impose a specific “hedging fee.” Hedging trades are subject to the broker’s standard costs, which include spreads and potential overnight holding costs on positions held past 5 PM New York time.

 

★★★★★
Minimum Deposit: $0
Regulated by: BaFin, FCA, ASIC, MAS, FMA, IIROC, DFSA
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Approved and regulatedHigh minimum trade
size for some assets
Full hedging support
on advanced
platforms.
Limited leverage for
retail clients
Competitive spreads
and fast trade
execution
Inactivity fees after
prolonged periods
Wide range of global
markets and
instruments
No raw spread ECN
accounts
Strong educational
and analytical tools
Customer support not
24/7 in all regions

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐⭐
2Range of Investments, Platforms and Tools⭐⭐⭐⭐☆
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐⭐☆
5Mobile Trading and User Experience⭐⭐⭐⭐⭐
6Customer Support and Regulatory Compliance⭐⭐⭐⭐⭐
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐☆
9Risk Management and Safety Measures⭐⭐⭐⭐⭐
10Markets Analysis and Trading Tools⭐⭐⭐⭐☆

 

Our Insights

CMC Markets is an approved and regulated broker offering full hedging capabilities across major platforms. With tight spreads, deep market access, and robust tools, it suits traders focused on managing risk and portfolio balance effectively.

 

9. City Index

 

★★★★
Minimum Deposit: $150
Regulated by: CIRO, CySEC, NFA, CFTC, CIMA, FCA, SFC, FSA, MAS, ASIC
Crypto: No

 

City Index is an authorized, regulated broker that permits hedging. This means traders can simultaneously hold both long (buy) and short (sell) positions on the same financial instrument, particularly in markets like forex and CFDs.

 

BrokerCity Index
Regulation🇬🇧 FCA
🇦🇺 ASIC
🇸🇬 MAS
🇨🇦 IIROC/CIRO
🇯🇵 JFSA
🇦🇪 DFSA
🇭🇰 SFC
Minimum Deposit0 USD
Spreads From0.5 pips
CommissionsNone
Swap FeesYes
LeverageUp to 1:30
Trading PlatformsCity Index Web Trader
MetaTrader 4 (MT4)
AT Pro
CFDs Total6,000+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

City Index Hedging

 

Frequently Asked Questions

 

Is City Index a registered broker that allows hedging?

Yes, City Index is an authorized and regulated broker in multiple jurisdictions (like the FCA and ASIC). They explicitly support hedging, which allows traders to simultaneously hold both long and short positions on the same CFD or forex instrument.

 

Which platforms support hedging with City Index?

City Index supports hedging on its proprietary WebTrader platform (and its mobile apps), MetaTrader 4 (MT4), and the integrated TradingView platform. On the proprietary platforms, you may need to enable a “non-FIFO” or “Hedging” setting.

 

★★★★
Minimum Deposit: $150
Regulated by: CIRO, CySEC, NFA, CFTC, CIMA, FCA, SFC, FSA, MAS, ASIC
Crypto: No

 

Pros and Cons

 

✓ Pros✕ Cons
Registered and regulatedLimited leverage for
retail clients
Full hedging support
on MT4 and
proprietary platforms
Inactivity fees after
prolonged dormancy
Competitive spreads
and fast execution
speeds
No support for crypto
deposits or
withdrawals
Excellent educational
tools and market
analysis
Advanced tools may
overwhelm beginners
Wide range of trading
instruments and
markets
No raw ECN account type

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐☆
2Range of Investments, Platforms and Tools⭐⭐⭐⭐☆
3Commissions, Fees, and Bonus Offers⭐⭐⭐☆☆
4Research and Education⭐⭐⭐⭐☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐☆
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐☆
9Risk Management and Safety Measures⭐⭐⭐⭐☆
10Markets Analysis and Trading Tools⭐⭐⭐⭐☆

 

Our Insights

City Index is a registered and well-regulated broker offering full hedging capabilities across platforms. With tight spreads, strong risk management tools, and diverse markets, it’s ideal for traders focused on balanced and secure trading strategies.

 

10. IC Markets

 

★★★
Minimum Deposit: $200
Regulated by: FSA
Crypto: Yes

 

IC Markets is an authorized and well-regulated broker that facilitates hedging, meaning clients can simultaneously hold long (buy) and short (sell) positions on the same financial instrument. The broker also employs an internal policy to manage its risk by hedging its exposure with external counterparties.

 

BrokerIC Markets
Regulation🇦🇺 ASIC
🇨🇾 CySEC
🇸🇨 FSA
🇧🇸 SCB
Minimum Deposit200 USD
Spreads From0.0 pips
CommissionsYes
Swap FeesYes
LeverageUp to 1:500
Trading PlatformsMetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
WebTrader
CFDs Total2,300+
Account SegregationYes
Negative Balance ProtectionYes
Investor Protection SchemesYes
Broker ReviewRead Review
Trade NowOpen Account

 

IC Markets Hedging

 

Frequently Asked Questions

 

Which platforms support hedging with IC Markets?

IC Markets supports hedging (simultaneous long and short positions) on its MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView platforms, as the broker does not have a First-In, First-Out (FIFO) rule.

 

Are there extra fees for hedging trades with IC Markets?

Hedging trades are subject to the same spreads and commissions as any other trade, meaning you pay for both the buy and the sell side. Overnight swap fees will also apply to both hedged positions held past the market close.

 

★★★
Minimum Deposit: $200
Regulated by: FSA
Crypto: Yes

 

Pros and Cons

 

✓ Pros✕ Cons
Legal and regulatedHigher minimum
deposits for certain
account types
Full hedging support
on MT4, MT5, and
cTrader
Limited educational
resources for
beginners
Tight spreads and low
commissions on ECN
accounts
Customer support not
24/7 globally
Fast trade execution
and deep liquidity
No proprietary trading
platform
Suitable for both retail
and professional
traders
Overnight financing
costs may apply

 

Final Score

 

#CriteriaScore
1Overall Rating and Trust Score⭐⭐⭐⭐⭐
2Range of Investments, Platforms and Tools⭐⭐⭐⭐☆
3Commissions, Fees, and Bonus Offers⭐⭐⭐⭐☆
4Research and Education⭐⭐⭐☆☆
5Mobile Trading and User Experience⭐⭐⭐⭐☆
6Customer Support and Regulatory Compliance⭐⭐⭐⭐☆
7Deposit and Withdrawal Option⭐⭐⭐⭐☆
8Execution Speed and Order Types⭐⭐⭐⭐⭐
9Risk Management and Safety Measures⭐⭐⭐⭐☆
10Markets Analysis and Trading Tools⭐⭐⭐⭐☆

 

Our Insights

IC Markets is a legal, regulated broker offering full hedging capabilities across major platforms. With competitive spreads, fast execution, and deep liquidity, it’s ideal for traders seeking effective risk management and flexible trading strategies.

 

What is Hedging in Forex Trading?

Hedging in Forex Trading is a risk management strategy used to protect your trading positions from adverse market movements. Essentially, it involves opening one or more positions that offset potential losses from your main trades.

Hedging is like buying insurance for your forex positions. You are protecting yourself from unwanted price swings while maintaining flexibility in your trading strategy.

 

Criteria for Choosing Hedging Forex Brokers

 

CriteriaDescriptionImportance
Regulation &
Authorization
Ensure the broker is
regulated by top-tier
authorities like ASIC,
FCA, CySEC, or FSCA to
guarantee legal
trading and fund
protection.
⭐⭐⭐⭐⭐
Hedging PolicyThe broker must
explicitly allow
hedging on accounts
and provide clear rules
for opening opposite
positions or using
hedging strategies.
⭐⭐⭐⭐⭐
Trading PlatformsPlatforms like MT4,
MT5, or proprietary
platforms should fully
support hedging with
reliable execution and
risk management
tools.
⭐⭐⭐⭐☆
Spreads & CommissionsCompetitive spreads
and low commissions
are essential to make
hedging strategies
cost-effective and
profitable.
⭐⭐⭐⭐☆
Leverage OptionsSufficient leverage can
amplify hedging
strategies, but it must
align with risk
management policies
and regulatory limits.
⭐⭐⭐⭐☆
Execution Speed &
Liquidity
Fast execution and
deep liquidity ensure
hedged positions are
entered and exited
efficiently without
slippage.
⭐⭐⭐⭐☆
Account TypesAvailability of ECN,
Raw, or Standard
accounts can affect the
flexibility and cost of
hedging strategies.
⭐⭐⭐☆☆
Customer SupportResponsive support
helps resolve issues
related to hedging
trades, platform
functionality, or
account queries
quickly.
⭐⭐⭐☆☆
Educational ResourcesGuides, tutorials, and
webinars on hedging
improve
understanding and
help traders
implement strategies
effectively.
⭐⭐☆☆☆
Deposit & Withdrawal
Options
Convenient and fast
fund access ensures
smooth hedging
operations without
interruptions.
⭐⭐☆☆☆

 

Criteria for Choosing Hedging Forex Brokers

 

Top 10 Best Zero Spread Forex Brokers – A Direct Comparison

 

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City Index SmallCompetitive spreads
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IC Markets SmallUltra-tight spreads
Fast execution
Flexible lot sizing
Open AccountRead Review

 

What Real Traders Want to Know!

Explore the Top Questions asked by real traders across the Globe. From hedging policies to reducing overnight risks, we provide straightforward answers to help you understand hedging and choose the right broker confidently.

 

Q: What is a forex broker’s hedging policy? – David R.

A: A forex broker’s hedging policy dictates if you can simultaneously hold opposing buy and sell positions on the same currency pair in the same account, a practice called direct hedging.

 

Q: How does hedging help reduce overnight risks and swap fees? – Emily W.

A: Hedging offsets potential overnight losses from price moves by simultaneously opening opposite positions, which can also cancel out the positive and negative swap fees associated with each side of the trade.

 

Q: What factors do brokers consider when choosing liquidity providers for hedging? – James L.

A: Brokers consider liquidity depth, tight spreads, execution speed, technology (low latency, stability), regulatory compliance, and the provider’s reputation and financial stability.

 

Pros and Cons

 

✓ Pros✕ Cons
Risk ManagementComplex Strategy
FlexibilityIncreased Costs
Volatility ProtectionReduced Profit Potential
Profit PreservationNot Allowed by All
Brokers
Diverse StrategiesMargin Impact

 

Pros and Cons of Hedging Forex Brokers

 

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In Conclusion

Hedging forex brokers offer traders the ability to manage risk by opening offsetting positions. While this strategy helps protect against market volatility, it requires skillful execution and may reduce potential profits due to added costs.

 

Faq

A hedging forex broker permits a trader to simultaneously open opposite positions (Buy and Sell) on the same currency pair. This common risk management technique is often used to temporarily lock in profit or limit losses.

Yes, forex hedging is legal in most of the world, including the EU, Asia, and Australia, as a risk management strategy. However, direct hedging (simultaneous buy/sell on the same pair) is prohibited in the United States by the CFTC.

Hedging works by opening a second position to offset the risk of an existing trade, like opening a short position on the same pair as a long position. This acts as price insurance to limit potential losses.

Traders use hedging brokers because they allow a direct hedging strategy (simultaneously buying and selling the same currency pair), which is often restricted on other platforms. This manages risk and limits losses.

No, not all forex brokers allow hedging. Policies vary by broker and regulatory jurisdiction. For instance, in the US, regulations like the FIFO rule effectively prohibit the simultaneous buying and selling of the same currency pair in a retail account.

The most common trading platforms that support hedging are MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. However, broker settings and local regulations, particularly in the US, can override this platform capability.

Yes, hedging involves extra costs. These primarily include paying the bid-ask spread on the additional, offsetting trade and potential overnight swap fees (interest) if positions are held long-term, which can erode equity.

Yes, beginners can use simple hedging strategies, like direct hedging (opposite trades on the same pair), but should start by practicing on demo accounts. More complex methods like options are generally best left to experienced traders.

Not necessarily better, but hedging brokers allow hedging (opposite positions on the same asset), which is itself a risk management strategy. All reputable brokers offer standard tools like Stop-Loss and Take-Profit orders.

The risks include reduced profit potential, the costs of opening the second position (spreads/commissions/swaps), and the complexity of managing two opposing trades effectively.

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