Forex brokers that allow Hedging

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 platform does. 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)

Looking for advanced Hedging Forex Brokers Comparison? Try our Forex Broker Comparison

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?

Forex broker 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.

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118 Comments

Fxpro doesn’t allow hedging …

I find fxpro a good broker allowing hedging and and other tools plus a reliable broker.

Thank you!

Hedging is allowed with ThreeTrades.

… and his business after being reported as a broker who accepts US clients….

Nothing really. Your broker won’t report you obviously, or he’ll lose a client 🙂

if i am in USA and use a foreign broker that allows hedging, what are the ramifications if i hedge? What gets reported?

icmbrokers allow heging

Thank you!
will be listed.

What about NFS? Nevis Fx Services (NFS) and domain nevisfxservices.com are a trading names of Fx Services Corp., a Nevis Corporation – Registration number : C 40334 (copy from their website)
They are White Label Partner with FinFx.
Hedging allowed
Scalping allowed

Nothing particular.
We have GCI Financial in our main broker search. It’s on the current list of hedging brokers as well.

Hi Broker Guru,
GCI Financial is not classified anywhere? What does this mean?

I use IC Markets, I find that they are by far the best best broker for hedging.

You can check the year of foundation for each broker, for example here, by clicking “Additional information” = Show all:
http://www.www.100forexbrokers.com/fx/broker_search.php

Ok guys I read all this, I see all this, and still because i am new, I have a serious question .. out of all these brokers, how many really are around and how many run away after a few days ? Heh, I did well on demo and I should not have done that because now I am scared to go live .. basic failure. =(

Thank you!

UMC

Go Markets is one of the oldest and well known brokers in the Forex industry.
Brokers who truly have many clients will have lots of online reviews, and also a higher volume of negative reviews (with a certain percentage of reviews being submitted by novice traders). On the other hand, brokers who have a small client base might have 10-15 reviews total on various websites with most of those reviews being generally neutral or positive.
We tried to address this issue about broker reviews at “Choosing a broker: Step 4 — Read reviews about selected brokers”
(http://www.www.100forexbrokers.com/how-to-choose-forex-broker)

It’s up to you at this stage to evaluate reviews and see if they contain essential information about broker”s trading conditions. In addition to that, you can always consider calling a broker to discuss any questions/concerns you may have about recent reviews.

At 100Forexbrokers we can’t judge/evaluate or recommend any particular broker. Our mission is to collect and provide accurate data about brokers, so that traders can easily choose and compare brokers.

I found many negative comments on forexarmy about go markets. What is you experience about this broker. Do you have any suggestion ?
thank You

Thank you!

IG Markets

its quite good website, thanks.

Oanda non US does not allow hedging

Tradefort – yes, they support hedging. Thank you!

tradefort supports hedging?

Hi,
Tradefort also support hedging.

According to this site, micro-cents trading is offered by:

Forex4you
FX|Clearing
EFX – England Foreign exchange
E-Global Trade & Finance Group
4UFX

Hedging ability and no FIFO works for all brokers outside US. But your problem obviously be that, by being a US citizen you have to trade with the US broker, unless you find ways to do it overseas.

Hi anyone,

I am a US client, looking for a Broker that offers:
1) Penny Account
2) Hedging
3) NO fifo

If you know any Forex Broker(s) that offers all these, please let me know

Thanks a million 🙂

Where hedging is allowed, the hedging conditions will be the same with all brokers.
You’ll need to look at a combination of factors: spreads, swap rates, min/max position size etc.

how can we find best broker for hedging

Pepperstone Does Not take US Clients now

Thank you!

Grand Capital Ltd.
http://www.grandcapital.net
Hedging is allowed with no restrictions.

CitiFx Pro allows hedging.
For more information, please try “CitiFX Pro” in the search:
Forex brokers comparison

anybody have any info on citi fx pro

Or you can use a bot or macro created by imacros,ubot, or zennoposter to have it enter a hedging position in your other account with a good execution speed. Having this setup on a VPS would allow for an excellent execution speed.

hedging is a not a trading strategy. it’s only showing your weakness in taking a trading decision and sticking to it no matter what happens. In that case, you need to build your strategy and your skillls…that’s the only way.
http://www.yen-to-pounds.net

guys dont vote for obama he ruined the forex industry we cannot hedge or go offshore anymore. Pls make a change in the coming elections.

FBS is in the list of heading brokers but there terminal do not execute heading positions.FBS is also not a good broker.They are real cheaters,and i have proves.They claim of being stp but there slipage, reqoutes, offqoutes are just like market makers.Thats why i am sure they are not STP.They claim on there website that hedging is allowed but heading is not possible in real accounts,i have to bear loss because of there cheating.

Sorry, I’m not sure I understand you. Can you add some information?

I HAVE A QUARRY MINE FOR HEDGING ANY BROKER OR TRADER AVAILABLE ?
[email protected]

ForInvest Group
http://www.forinvest.net/
Hedging is allowed with no restrictions

vertifx.com broker is good for hedging.

anybody had any news or comments or review on Huprofx? a.s.a.p. ever heard of it? been told based at UK. can somebody confirm with me the legitimacy of the company? with scams going all rounder, need to have other reviews on huprofx.

So far, I haven’t found an offshore forex brokers will allow US citizens to open an account. This is ridiculous.

Even the Forex brokers that supposedly allow hedging won’t allow a US citizen to even open an account with them. What are we supposed to do? Any ideas?

the UK office – yes.

does igmarkets UK allowed hedging

IamFX forwards you to another site after letting you know about the new USA rules. The site (ForexHoster) seems to be a software subscription service.

Thank you!

mrcmarkets very low pip and allow scalping and hedding

Yes.

can i hedge using broco?

oh really might try that

Yes, thank you. It’s been added.

FXDD Malta allows hedging.

No, unfortunately. We haven’t looked closer at this broker yet.

Any views or idea about Forexial FX Solutions???

Prime 4x is a Scam Broker they still people money,
theyn don’t belong on this list

Forex trading is impossible enough for me without adding in broker problems. Some traders at Forex factory claim they had trouble with FXopen (FXegypt) but the brokerage has three stars and 161 reviews at ForexPeaceArmy, better than most of the big-name brokers, so to quote Moe you start at this point and work down to there and then it’s every trader for himself.

Thank you!

eforex.com allow hedging

Hi, One Financial (http://www.onecfd.com) does support hedging.

what the best broker that have non swap,high leverage,no lagging,depo/draw,no scam,and use mt4??

hello..can i know the best of the best that suitable to me as an islamic people that want play hedging and high leverage..best broker only..

Because they are convinced that hedging possess a high risk, and, according to their arguments, traders aren’t able to use it to their advantage and are vulnerable to higher losses should they be allowed to hedge.

There are some further details in NFA’s document, which can be viewed from the following page:
http://www.www.100forexbrokers.com/nfa/hedging-under-new-nfa-regulation-fifo

A small question if I may : why would NFA not allow hedging in the same pair ?

Thanks, Have a good day.

I would like to believe there should be.
I don’t, however, know any brokers from Brazil.

Hi , BrokerGuru,
We were wondering if there are any honest brokers in Brazil.
Thanks

Thank you!

I’m trying FX Club demo account and they don’t allow hedge and neither multiple orders in one direction on the same currency pair.

Sigma Forex allows hedging as well. I didn’t see this broker on the list.

Absolutely. In fact, any Forex broker allows opening multiple positions on the same currency pair, the difference is: a non NFA regulated broker will allow multiple positions in both directions: Buy and Sell, while NFA regulated brokers due to FIFO rules will only allow multiple orders in one direction (either Buy or Sell) on the same currency pair.

Are Brokers that allow hedging, mean we can do multiple order ( Open Position ) too ? (at the same pair ? ) Thanks !

yes, hedging is allowed at FX solutions UK. Thank you!

What about FX Solutions UK ?

I’d suggest reading reviews online, this would be much more helpful if you’re looking to get a 360 degree review of the broker.

How about FXPro? is anybody had used this broker? So far how is the service in terms of Withdraw and deposit?

hello,
please which broker allow news trading with out disconnecting or manipulating their server during this period.
fxopen.com have started manipulating their severs and many of us are quitting.

thanks
cole

Thank you!

Saxo Bank also allows hedging

As far as I know, Alpari UK allows hedging, while Alpari US doesn’t.

Does Alpari UK allow hedging. I see conflicting information please clarify

Thank you,

PFG has been removed form the hedging brokers list.

PFG does not support hedging. Here is their response:

“You are unable to Hedge with the new NFA rules. This goes for both platforms”

(both platforms = NinjaTrader & MetaTrader – we previously talked about them)

Please remove them from the list of brokers with hedging support.

Thank you!

did any body know a good forex compani in singapor?

I’m few few weeks from introducing an Advanced brokers search. It should be able to solve a lot of questions.
Thank you for suggesting a broker!

I was just looking Through the List of Brokers Above that Allow Hedging and i didn’t see NordMarkets.
They offer Hedging , But they are Not in Your List.
They are Based in Sweden.
By the way Your doing a Great Job on Your Website, do You have any Data on FX Brokers in Singapore?
I know there is Oanda Asia Pacific, Saxo, MF Global Branches there but i am seeking other Possible Broker Choices there.

FXDD is currently pending registration with NFA (it’s been long time though); other than that, nothing, FXDD is not a regulated broker at the moment.
IFC Markets is incorporated in the British Virgin Islands (reg # IBC CAP. 291 Reg. № 669838). Other than that IFC Markets have no regulatory bodies above them.

may I know about FXDD & IFC Markets ?
does FXDD have been regulated with any of regulatory body ?
what is IFC Markets regulated ?
as a new bee, give me advice to pick one of them…
i do prefer hedging & scalping trading stlye.

Big Thanks for your answer..

You’ve got one good set of requirements there!

Few days ago I began working on a new custom broker search service where you’ll be able to freely choose the parameters for your broker and get the detailed comparison results all on one page.
I believe I’ll be able to finish this project in two-three weeks time. Either way it’ll be announced on the website, you won’t miss it!

Brokers in the UK Support Hedging….But as You have Mentioned the NFA has Stoped Hedging in one account in the U.S…
I am in the Process of Finding a Broker that Allows the Following:
Scalping
Hedging
Low Spreads
News Trading
Higher Leverage-at Least 100:1-Higher Prefered.
ECN/STP/NDD
Large Source of Liquidity Providers/Banks
Regulated
Mini Lot Trading-$ 10,000 Lot Sizes with Capacity up to $5 Million Per Click
Robust and Stable Platform-Trade from Charts-one Click Trading
Block Trading for Sub Accounts-Controlled Tru Master Account/Allocation Per Account
Prefered Locations where Segragated Funds are held : NZ-Singapore-Switzerland-Europe.
Thanks for any help.

Global Futures

As I said few comments above I have no information on this broker and I don’t have any experience with them either. I’m very sorry.
They claim to belong to Hupro Financial Group, but again there is not even a bit of information about such entity, not even a website…

yea same here….Is HuproFX reli good..cant find any info on them…despite the fact they claim to have been in existence for over 12 years

Quite a task..
I’m afraid I can’t name a broker right away. If I come across such option, I’ll post an update here.

Update: AvaFX allows debit card withdrawals.

of the brokers above which allow hedging in a single account, which have a debit card fund withdrawl program?
I must say that this accessibility to funds is a huge convenience with InterbankFX. Now that InterbankFX no longer supports hedging, I’m interested in finding a reputable broker that still supports hedging and makes funds available by debit card.

This is the first time I hear about HuproFX.
Also there isn’t much (actually nothing at all) about them on the net: no reviews, feedback, talks anywhere.
I guess they must be new..?

Has anyone heard of HuproFX?

You will have 2 accounts, which will balance each other, e.g. while on one account your position will lose, on the other one, it’ll be profitable. The difficulty is that you need to constantly monitor balances on both accounts to make sure that none of them goes beyond its limits and gets a margin call. This means you’d need to regularly add money to the account that hold negative trades. Also, as you said, you will probably need a bit more money to spread them in between two accounts the way that you can trade the amounts you want.

Hi BrokerGuru,
yes to use still hedging you can opens 2 diff. accounts however that way you will not “hedge” anymore your balance (hedge trade will balance the primary trade/s). Also open 2 accounts mean need double amount of initial balance to hedge.
Or are I am wrong?

“New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as “hedging.” A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge. ”

The rule still doesn’t apply to brokers that are not regulated by NFA…
Plus a trader can always open 2 different accounts with same or another broker and continue hedging.

Which of these brokers still allow hedging once the NFA rule goes into effect on May 1st?

I’ve just confirmed – Marketiva supports hedging… Are you experiencing any difficulties hedging with this broker?

hi there ,just want to say that marketiva dont support hedging.

Thank you!

marketiva also allows hedging

thank you!

Hi, currently Tadawulfx.ch allows hedging

GFS Forex & Futures also supports hedging.

MoneyForex Financial Ltd. is incorporated in British Virgin Island (Registration Number 629302) under the provisions of the International Business Companies Act, 1984. MoneyForex is authorized to offer futures, securities, and foreign exchange as a forex broker and primary market maker.

What about Moneyforex? Are they not a registered Forex Brokers?