Forex Hedging Brokers

FOREX HEDGING BROKERS

Thanks in part to new regulations from the NFA as well as the SEC, many American based forex brokers could no longer allow investors to hedge their positions. Hedging, of course, is the process of buying and selling the same currency pair at the same time. 

Forex Hedging

Imagine you own 50 lots of EURUSD and think the price may soon plummet. You choose to sell 40 lots, which brings your net exposure to EURUSD from long 50 lots to long 10 lots. Should the EUR/USD, you’ll only lose one-fifth of what you would have if you did not hedge.
Unfortunately, NFA regulated forex brokers cannot allow hedging to their clients. Previously, forex traders could long 50 lots of EURUSD and simultaneously going short 40 lots, for a total of 90 lots. Now, with NFA regulated forex brokers (US Based Forex Brokers), the trader can only be long or short, not both. So, when the trader seeks to sell 40 lots of EURUSD, the forex broker is forced by regulation to simply lower the total net position to long 10 lots of EURUSD.

How to Hedge with Any Forex Broker

To hedge your positions with a US broker, you’ll have to open two accounts, one for long positions and one for short positions. Unfortunately, this can be cumbersome, as well as make accounting more difficult.

List of Brokers that still allow hedging

Here is a compiled list of forex brokers that can legally allow their clients to hedge their positions without opening multiple accounts:
ACM

ActivTrades

Admiral Markets

Advised Trading

Alpari UK Ltd

Apex FX Trading

Arab Financial Brokers K.S.C.C.

ATC brokers

ATFX – Able Trend Forex

ATG Marketplex (non-US accounts)

Atlantic FX

AvaFX

AVS Carter

Baron Forex

BroCo

C.I.M Banque

Charter FX

CG FOREX

dbFX

Deltastock

Deutsche Bank AG

EFX – England Foreign Exchange

EXNESS

Exto Capital

Fastbrokersfx

FCMarket

Fibo Group Ltd

FIGfx

Fin Market

FinOdds

Forex Capital Trading

Forex Ltd

Forex Metal

Forex Ukraine

Forex Trading Edge
Forex4you

ForexCT

Forex FS

Forexial FX Solutions

Forex Place – 4XP

ForexYard

ForInvest Group

FX Clearing

FX Open

FX Solutions UK

FX Trading

Fx-Pro

FXcast

FXCBS

FXCH

FXCM UK

FxCompany

FXLite

FXM Financial Group

FxPro

Gallant FX

GCI Financial

GIGFX

Global Clearing Group LTD

Global Futures

GO Markets

GTL Trading

IamFX

IFC Markets

iForex

IHI – Investment House International

Interactive Brokers

Interbank FX (2 split accounts)
InvestTechFX

JadeFX

KVB Kunlun

Lite Forex

Mandus Invest SA

Marketiva

Master Forex

MBCFX – Multiple Banks Clearing

MIG BANK

MoneyForex

Neuimex

NordMarkets

NTWO Capital Markets

OneCorpFX

PFGFX – Pro Finance Group

Poltek FX

Prime4x

Pro-Forex

PronetFX

Real Trade Group, Ltd

Saxo Bank

SFXB – SwissFXBroker

Sigma Forex

SmartTradeFX

Spot Trader FX

Swiss International Financial Brokerage K.S.C.

Tadawulfx.ch

TGM – Taurus Global Markets, Ltd

The Collective FX

Tradeview Forex

Uni-FX

UWC – United World Capital

Vantage FX

Varengold Bank FX

Windsor Brokers Ltd

X-Trade Brokers

XForex.