Best Forex Brokers For Hedging in 2022

filippo ucchino Filippo Ucchino calendar Last Updated: October 2022 timer 6 Min Read

At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

In this article, we have grouped some of the best forex brokers for hedging.

In making this ranking, we have taken the following factors into consideration:

  • The platforms available for doing hedging
  • The number of forex pairs available
  • The total number of tradable assets
  • The broker’s commissions
  • The quality of order execution
Table of Content

Round-up

Brokers Number of forex pairs Forex spreads from Allows hedging
IC Markets 60 0 pips Yes
Pepperstone 60 0 pips Yes
Admirals 35 0 pips Yes
AvaTrade 60 0.9 pips Yes
FxPro 65 0 pips Yes
FBS 30 0 pips Yes
HF Markets 45 0 pips Yes
XM 55 0 pips Yes
OctaFX 35 0.2 pips Yes
FP Markets 30 0 pips Yes

WARNING

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 can afford to take the high risk of losing your money

Review

1. IC Markets

  • IC Markets allows its traders to hedge in the forex market.
  • Traders who want to hedge on IC Markets will find ECN execution that ensures low spreads as low as 0 pips.
  • With IC Markets it will be possible to hedge over 60 forex pairs on three different platforms: MT4, MT5, and cTrader.
  • The minimum deposit on IC Markets is $200.

Visit IC Markets
(74-89% of retail CFD accounts lose money)

2. Pepperstone

  • Pepperstone allows hedging on its trading platforms.
  • Pepperstone offers over 100 assets in total on which to hedge, including 60 forex pairs.
  • Pepperstone’s ECN execution offers its traders low spreads as low as 0 pips.
  • The platforms available for hedging on Pepperstone are MT4, MT5, and cTrader.
  • Pepperstone’s minimum deposit is $200.

Visit Pepperstone
(75.9% of retail CFD accounts lose money)

3. Admiral Markets

  • Admirals allows hedging on more than 4,000 financial instruments.
  • To hedge on Admirals you will be able to use either MT4 or MT5.
  • Admirals offers a total of five different account types for hedging, and the minimum deposit starts at $100.
  • Spreads on Admirals start at zero pips, however, they can vary depending on the account type chosen.

Visit Admirals
76% of retail CFD accounts lose money

4. AvaTrade

  • AvaTrade’s fixed spreads allow hedgers to manage commissions more effectively.
  • Fixed forex spreads start at 0.9 pips with AvaTrade and 0.6 for professional clients.
  • AvaTrade offers several trading platforms for hedging, including MT4.
  • Among the 250 assets available for hedging, AvaTrade also offers 60 forex pairs.
  • AvaTrade’s minimum deposit is $100.

Visit Avatrade
(79% of retail CFD accounts lose money)

5. FxPro

  • FxPro is one of the most flexible brokers for hedging.
  • FxPro offers a large number of account types on different platforms (MT4, MT5 and cTrader).
  • FxPro offers both fixed and variable spreads depending on the account type chosen.
  • Spreads with FxPro start at 0 pips.
  • The minimum deposit required by FxPro is $100.

Visit FxPro
72.87% of retail CFD accounts lose money

6. FBS

  • FBS is the only hedging broker that offers Cent accounts.
  • FBS’s Cent account can be useful for beginners to test hedging strategies in real markets with just a few cents.
  • Spreads on FBS start at zero pips, however, they may vary depending on the account.
  • One shortcoming of FBS is the low number of assets available, with about 90 CFDs of which 30 are forex pairs.
  • On FBS it is possible to hedge on MT4 and MT5.

Visit FBS
74-89% of retail CFD accounts lose money

7. HF Markets

  • HF Markets is a broker that allows hedging on its MT4 and MT5 platform.
  • HF Markets offers numerous account types starting with a minimum deposit of $5.
  • HF Markets offers spreads starting at 0 pips.
  • HF Markets traders can hedge over 100 assets in total, including over 45 forex pairs.

Visit HF Markets
(71,32% of retail CFD accounts lose money)

8. XM

  • XM allows hedging on more than 1,000 financial instruments, including 55 forex pairs.
  • Traders hedging on XM can expect an efficient execution policy with almost no requotes.
  • Spreads on XM start at 0 pips.
  • XM offers numerous account types with a minimum deposit of $10.
  • XM allows hedging on MT4 and MT5.

Visit XM
73.57% of retail CFD accounts lose money

9. OctaFX

  • OctaFX allows its traders to hedge on its platforms.
  • OctaFX offers several account types with a minimum deposit of $25.
  • Traders on OctaFX can hedge 35 forex pairs with spreads starting at 0.2 pip.

Visit OctaFX
74-89% of retail CFD accounts lose money

10. FP Markets

  • FP Markets offers its hedging services on over 10,000 assets.
  • Traders on FP Markets can also hedge on 30 forex pairs with spreads as low as 0 pips.
  • FP Markets offers excellent ECN execution for its traders.
  • The minimum deposit at FP Markets is $100.

Visit FP Markets
74-89% of retail CFD accounts lose money

Is hedging legal? Do forex brokers allow Hedging?

Hedging in forex trading is not technically illegal in any area. It is widely seen as quite a common technique of traders who are trying to balance their risk effectively. Having said that, some individual brokers may not allow hedging based on their own policy. Some regulatory bodies who employ the use of FIFO (First in First Out) executions, for example in the US, also make hedging virtually impossible.

How to choose a broker for Hedging?

Due to the nature of hedging, the fees and spreads of a forex broker become very important when you are selecting the best hedging broker. Because you are opening two opposing positions on a market, both long and short, at the same time and on the same asset, you will have to pay double the commission if there is any.

You will also be paying the spread on these two positions as well as any other fees that may come up including overnight fees or trading fees if they are applicable. Keeping all of these costs down is imperative if you want your hedged position to come out on top. Trading commissions and other fees may be more on CFDs so this is also something you should remain mindful of when choosing your hedging broker and markets.

The final thing to look out for if you are engaged in hedging is any slippage that may occur. This is a price change between order and execution that can happen when markets are volatile. Requotes are another minor price change that you should try to avoid. Many top forex brokers offer no requotes or hidden fees along with ECN execution which makes the pricing more stable, transparent, and the order process generally runs smoothly with less chance of slippage.


About The Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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