Forex trading without leverage – is it possible and should you do it?

Forex trading is often synonymous with high leverage, allowing traders to control large positions with minimal capital. But what if you trade forex without leverage? Is it practical, and more importantly, is it the right approach for your trading style?

In this article, we’ll explore:
✔ The pros and cons of unleveraged forex trading
✔ Real-world examples of trading with 1:1 leverage
✔ Effective strategies for no-leverage trading
✔ A detailed review of the best FX and CFD brokers

Can you trade Forex without leverage?

Absolutely. Trading forex without leverage means using 1:1 leverage – your position size matches your account balance. For example:

• If you deposit $10,000, your maximum trade size is $10,000.
• A 1% move in your favor would earn you $100 (compared to amplified gains or losses with leverage).

Check out ➡ Forex trading with leverage and margin explained

Why trade without leverage?

1. Lower risk – No margin calls or forced liquidations.
2. Reduced emotional stress – Less volatility means fewer panic decisions.
3. Long-term profitability – Better suited for swing trading and investing.

The downsides

• Smaller returns – Gains are slower without leverage.
• Requires more capital – You need a larger account for meaningful profits.

Trading GBP/USD without leverage example

Assume you have $50,000 and trade GBP/USD at 1:1 leverage:

• Entry price: 1.2500
• Position size: $50,000 (50,000 units)
• Exit price: 1.2600 (+100 pips)

Profit calculation:

• Pip value (GBP/USD): $1 per 10,000 units → $5 per 50,000 units.
• 100 pips × $5 = $500 profit (1% return).

Compare this to 1:50 leverage:

• Same $50,000 controls $2,500,000 position.
• 100 pips = $25,000 profit (50% return)—but a 100-pip loss would wipe out half your account.

Which approach is better?

• Leverage: High risk, high reward (suits aggressive traders).
• No Leverage: Steady, sustainable growth (ideal for conservative traders).

Best Forex trading strategies without leverage

1. Swing trading (medium-term)

• Hold trades for days to weeks, capturing larger price movements.
• Works well with technical & fundamental analysis.

➡ Forex swing trading case study: key indicators and pro tips

2. Carry trade strategy

• Buy high-interest currencies, sell low-interest ones.
• Earn daily swap interest (since no leverage = no swap costs).

3. Position trading (long-term investing)

• Hold trades for months or years based on macroeconomic trends.
• Example: Buying USD/CHF if the Fed raises rates while the SNB remains dovish.

➡ Forex position trading explained: long-term strategies and key indicators

4. Diversified portfolio approach

• Allocate capital across multiple currency pairs to reduce risk.
• Example: 30% EUR/USD, 30% USD/JPY, 20% Gold, 20% Commodities.

Best Forex and CFD brokers for trading without leverage

Choosing the right broker is crucial, whether you trade with or without leverage. Below is a detailed review of the five top-rated brokers:

XM Group

• Regulation: ASIC, CySEC, FCA
• Leverage: Up to 1:1000 (Pro accounts)
• Minimum deposit: $5
• Key features: Ultra-low spreads, free educational resources, and excellent customer support.
• Best for: Traders who want tight spreads and flexible leverage options.

BlackBull Markets

• Regulation: FMA (New Zealand), FSA (Seychelles)
• Leverage: Up to 1:500
• Minimum deposit: $0 (ECN account)
• Key features: True ECN execution, deep liquidity, and fast order execution.
• Best for: Professional traders seeking raw spreads and institutional-grade trading.

eToro

• Regulation: FCA, CySEC, ASIC
• Leverage: Up to 1:30 (for retail clients)
• Minimum deposit: $50 (varies by region)
• Key features: Social trading, copy-trading, and a user-friendly platform.
• Best for: Beginners and traders who want to follow expert strategies.

Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

AvaTrade

• Regulation: Central Bank of Ireland, ASIC, FSCA
• Leverage: Up to 1:400
• Minimum deposit: $100
• Key features: Strong regulation, automated trading (Expert Advisors), and multiple platforms (MT4/MT5).
• Best for: Algorithmic traders and those who prefer automated strategies.

OANDA

• Regulation: CFTC, FCA, ASIC
• Leverage: Up to 1:50 (for retail traders)
• Minimum deposit: $0 (No minimum)
• Key features: Trusted broker, advanced charting tools, and reliable execution.
• Best for: Long-term traders and those who prefer a well-established broker.

Related articles:

• Forex trading with leverage and margin explained: how to manage risks

• What is the best leverage for $100, $500, $1000 FX accounts?

• How CFD leverage limits differ between the UK, Australia, and Asia