Best Forex Brokers for Hedging in 2025

Written by Steven Hatzakis
Edited by Jeff Anberg
Fact-checked by Joey Shadeck

December 02, 2025

Steven Hatzakis

Steven Hatzakis is the Global Director of Online Broker Research for ForexBrokers.com. He is a forex industry expert and an active fintech and crypto researcher.

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Steven Hatzakis has been reviewing forex brokers for nearly ten years and has 25+ years of experience as a forex trader. His broker reviews are unbiased and independent, and his expertise is sought after for global FX conferences and speaking events around the world. Learn how we test.

Hedging is an essential tool in many risk management strategies for forex traders, but your ability to hedge will depend on your broker, account type, trading platform, or even local regulatory restrictions.

I’ve studied hedging for decades, including as a futures trader at a U.S.-regulated broker. This guide will dive into the legality of hedging and explore the differences between hedging and non-hedging brokers. You'll also find my picks for the best hedging forex brokers.

Which forex brokers can I open an account with?

Select your country of residency below to see which regulated forex brokers will accept you as a new customer for trading forex.

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Company	Average spread (EUR/USD) - Standard account	Minimum Deposit	Overall Rating
IG	0.91 info	£1
Interactive Brokers	0.59 info	$0
Saxo	1.0 info	$0
CMC Markets	1.3 info	$0
FOREX.com	1.00 info	$100
Charles Schwab	1.27 info	$0
City Index	1.4 info	£100.00

Best hedging forex brokers

My review process at ForexBrokers.com includes hands-on testing, robust fact-checking, and thousands of hand-collected data points; here are my picks for the best global forex brokers for hedging in 2025:

Overall Score

5.0/5

Best overall for forex hedging in 2025.

Minimum Deposit: £1
Trust Score: 99
Tradeable Symbols (Total): 19537

Why we like it

Review

IG offers the ultimate comprehensive trading package, featuring excellent trading and research tools, industry-leading education, and an extensive range of tradeable markets. Read full review

Pros

Outstanding platforms and tools
Over 19,000 tradeable instruments
Competitive pricing

Cons

No predefined layouts on the flagship web platform
Limited product range on MT4

Overall Score

5.0/5

Great for hedging and currency conversion.

Minimum Deposit: $0
Trust Score: 99
Tradeable Symbols (Total): 8500

Why we like it

Review

Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite. Read full review

Pros

Robust platform for professional traders
Wide range of global markets
Thorough research offering

Cons

Trader Workstation platform is likely too complicated for inexperienced traders

Overall Score

5.0/5

Hedging via Force Open and end-of-day FIFO netting.

Minimum Deposit: $0
Trust Score: 99
Tradeable Symbols (Total): 71000

Why we like it

Review

Saxo is an exclusive multi-asset broker with brilliant research and a superb trading platform experience – as well as a stunning selection of over 40,000 securities. Read full review

Pros

Flagship platform is top of the line
Over 40,000 tradeable instruments
Excellent customer service

Cons

High minimum deposit

Overall Score

5.0/5

Offers netting and hedging from within platform settings.

Minimum Deposit: $0
Trust Score: 99
Tradeable Symbols (Total): 12029

Why we like it

Review

CMC Markets is well-trusted across the globe, and delivers a terrific trading experience thanks to its excellent pricing and selection of over 12,000 tradeable instruments. Read full review

Pros

Low trading costs
Excellent web and mobile platforms
Robust research materials

Cons

Educational offering could be improved

Overall Score

5.0/5

Hedging is available via options, CFDs, and derivatives.

Minimum Deposit: $100
Trust Score: 99
Tradeable Symbols (Total): 5500 info

Why we like it

Review

FOREX.com is a trusted brand that delivers an excellent trading experience for forex and CFDs traders across the globe. It offers a wide range of markets and provides an impressive suite of proprietary platforms – alongside limited access to MetaTrader. Read full review

Pros

Multiple high-quality platforms
Excellent market research
Wide range of markets

Cons

Only about 600 instruments are available on the MT5 platform, compared to over 4,500 on non-MetaTrader platforms

Overall Score

5.0/5

Forex hedging via futures and options.

Minimum Deposit: $0
Trust Score: 99
Tradeable Symbols (Total): 40000

Why we like it

Review

Charles Schwab is a highly trusted financial institution and multi-asset broker catering to U.S.-based and international forex traders. Schwab's award-winning thinkorswim platform offers over 70 tradeable currency pairs alongside impressive tools, research, and education. That said, the broker’s forex offering is still largely limited to what is available on thinkorswim. Read full review

Pros

Outstanding platform in thinkorswim
Thorough research offerings
Excellent educational materials

Cons

Does not offer copy trading
Forex pricing is slightly higher than industry average

Overall Score

5.0/5

Allows direct hedging in certain regions.

Minimum Deposit: £100.00
Trust Score: 99
Tradeable Symbols (Total): 13500

Why we like it

Review

Backed by StoneX Group, City Index is a trusted brand known for its versatile trading platforms, excellent mobile app, diverse market research, and extensive range of tradeable markets. Read full review

Pros

Excellent platforms and mobile app
Extensive range of markets
High-quality market research

Cons

Pricing is average for the industry
Limited product range on MT4

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Top picks for hedging

Best overall forex broker for hedging - IG

Company	Overall Rating	Average spread (EUR/USD) - Standard account	Trading Fees	Minimum Deposit
IG		0.91 info		£1

As one of the most highly trusted and regulated brokers we review, IG is my top choice for hedging forex in 2025. With IG’s award-winning web trading platform and mobile trading app, you can toggle hedging using the “force open” setting, allowing you to open trades in opposing directions on the same currency pair.

One nice feature I like about IG’s trading platform interface specifically for hedging is that when I’m placing a new order to hedge, or modifying an existing hedged trade, the platform shows a preview of the resulting positions. This preview lets me easily and quickly see how deeply hedged, and in which direction, my position will become. Read my in-depth IG review to learn more about why it's a great overall choice for a broker.

Great for both hedging and currency conversion - Interactive Brokers

Company	Overall Rating	Average spread (EUR/USD) - Standard account	Trading Fees	Minimum Deposit
Interactive Brokers		0.59 info		$0

Interactive Brokers (IBKR) is another excellent choice for traders looking to hedge their forex-related orders at a highly trusted multi-asset broker. Traders on IBKR have access to a broad range of markets and instruments to either hedge directly or indirectly. This includes advanced options for how currency conversion takes place when trading on foreign exchanges, depending on your base currency.

Even if you don’t have access to forex trading directly based on your account or location, traders at IBKR can use forex futures and options to indirectly hedge their forex positions elsewhere. Learn more about the options available for forex trading by checking out my Interactive Brokers review.

Interactive Brokers research Traders Insight daily analysis article detail

Multiple choices for hedging strategies - Saxo

Company	Overall Rating	Average spread (EUR/USD) - Standard account	Trading Fees	Minimum Deposit
Saxo		1.0 info		$0

A well-regulated, highly trusted broker that ranks for many key categories, Saxo is another one of my top choices for hedging forex. Saxo offers you the ability to hedge in two ways: either by selecting “force open” after you have real-time first-in-first-out (FIFO) enabled, or enabling end-of-day FIFO as the netting method.

These settings are all configurable inside their easy-to-use SaxoTraderGO platform, making it relatively simple to switch hedging on or off with a few clicks. This seamless integration makes them stand out against the other competition in this field. Read my full Saxo review to learn more.

SaxoTraderGO web platform US election geopolitical market event theme.

Saxo's research daily articles forex market analysis

The importance of using regulated brokers to hedge

There are many possible reasons why an investor may want to hedge a position but, regardless of strategy, reliable execution of that hedge trade is essential. In an absolute worst-case scenario, a hedge trade fails and leaves your original position completely exposed.

It’s extremely important to use brokers that are regulated and highly trusted to reduce your risk of potential situations where a dispute can arise over your hedge trade. Each broker we review is rated using our proprietary Trust Score to allow you to judge their overall trustworthiness and reliability.

model_trainingDid you know?

Even brokers themselves may employ hedging to manage their own risk when executing client orders, such as when you’re executing a trade with a market maker broker.

FAQs

Is forex hedging illegal in the US?

Yes, in the United States the NFA has banned hedging for retail forex traders and requires that brokers close trades on a first-in-first-out (FIFO) basis while netting existing client account positions in their backend. Hedging is not illegal everywhere, however. Whether your broker offers hedging depends on your country of residence and the regulatory framework in which the broker operates.

The difference between hedging vs netting in forex trading

Hedging brokers allow you to temporarily change directions while keeping both positions open. For example, let's say you opened a significant long position on the EUR/USD but now see the possibility of a downward trend that may only last a few hours. You might attempt to profit from this news by opening a new short position as a hedge against your existing long position. Both trades will be active, with their own stop or take profit limits (if enabled). Hedging can give you more control over setting stop or take profit limits on each individual trade.

Brokers that do not allow direct hedging will often offset trades using netting on a first-in-first-out (FIFO) basis. When netting is enabled you cannot hedge, and your broker simply increases or decreases your long or short position depending on what the overall net hedge would have been. This trade execution method is required by law in the U.S. for retail traders. When using FIFO, if you had multiple trades open for a given currency pair and wanted to close a portion of your overall position, the oldest trades would be the first to close.

savingsImportant:

A key point to consider with hedging is that you still incur trading costs from the multiple and distinct open positions, like spread costs or overnight fees.

How do I create a forex hedging strategy?

To create a forex hedging strategy, you need to understand how to minimize risk by balancing positions. A forex hedge involves opening a second position to offset potential losses from your primary trade. This can be done through direct hedges, imperfect hedges, or more complex strategies like correlation hedging. Your broker's policies and local regulations will also play a role in whether you can use hedging. For a deeper dive into common forex hedging techniques and tips, check out my full guide on hedging strategies.

What types of investments can you hedge with a forex broker?

Hedging can be achieved in a variety of ways, both directly and indirectly. Much depends on what your hedging broker offers, the range of markets being accessed, and whether direct hedging is permitted or available for a specific security.

If the broker permits direct hedging, you can simply open an opposing trade to sell a forex currency pair or other security (like CFDs, futures, stocks, or crypto) for an amount based on the percentage you want to hedge.

On the other hand, you can hedge indirectly by trading a different instrument for the same asset class, such as buying or selling forex options to hedge spot forex or vice versa. For example, a trader expecting a long-term appreciation in a currency pair may hedge their position against the event of a short-term pullback by purchasing a forex put option on that same pair. Should the market suddenly drop, the trader will profit from the put option and counteract the loss taken in the long-term position.

Which forex brokers allow hedging?

Not all forex brokers allow hedging. Whether hedging is available to you will depend on the individual broker and any applicable regulatory restrictions that may be in place based on your country of residence or the broker’s regulatory location.

Even hedging forex brokers may have platforms or account types that need to be adjusted to enable hedging. For example, CMC Markets allows you to enable hedging by disabling account netting from within their NextGeneration platform settings.

What is the best broker for hedging?

IG is the best broker for hedging in 2025. In addition to being our number one broker across nearly every other category, IG makes it easy to enable hedging, where permitted, from within its web platform or mobile app. When testing IG’s hedging capability, I found that their platform provides an option to toggle between “net off” (which means an opposing trade will close an existing one) and “force open” (which will open a new hedging position in the opposing direction without closing the initial trade). Check out my IG review to learn more about why IG stands out among the top forex brokers.

An original short trade and hedging long position are shown together on IG's platform.

Our testing

Why you should trust us

Steven Hatzakis is a well-known finance writer, with 25+ years of experience in the foreign exchange and financial markets. He is the Global Director of Online Broker Research for Reink Media Group, leading research efforts for ForexBrokers.com since 2016. Steven is an expert writer and researcher who has published over 1,000 articles covering the foreign exchange markets and cryptocurrency industries. He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages. Steven holds a Series III license in the US as a Commodity Trading Advisor (CTA).

All content on ForexBrokers.com is handwritten by a writer, fact-checked by a member of our research team, and edited and published by an editor. Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the forex industry.

Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with quality data they can trust. Click here to learn more about how we test.

How we tested

At ForexBrokers.com, our online broker reviews are based on our collected quantitative data as well as the observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research on the top forex brokers and monitor dozens of international regulator agencies (read more about how we calculate Trust Score here).

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For Apple, we use MacBook Pro laptops running macOS 15.3, and the iPhone XS running iOS 18.3.
For Android, we use the Samsung Galaxy S20 and Samsung Galaxy S23 Ultra devices running Android OS 15.

All websites and web-based platforms are tested using the latest version of the Google Chrome browser.

Our researchers thoroughly test a wide range of key features, such as the availability and quality of watch lists, mobile charting, real-time and streaming quotes, and educational resources – among other important variables. We also evaluate the overall design of the mobile experience, and look for a fluid user experience moving between mobile and desktop platforms.

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Now that you've seen our picks for the best brokers on this guide, check out ForexBrokers.com's overall broker rankings. We've evaluated over 60 forex brokers, using a testing methodology that's based on 100+ data-driven variables and thousands of data points. Also take a look at our full-length, in-depth forex broker reviews.

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About the Editorial Team

Steven Hatzakis is the Global Director of Online Broker Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.S. as a Commodity Trading Advisor (CTA).

Jeff Anberg is a Senior Editor at ForexBrokers.com. Along with years of experience in media distribution at a global newsroom, Jeff has a versatile knowledge base encompassing the technology and financial markets. He is a long-time active investor and engages in research on emerging markets like cryptocurrency. Jeff holds a Bachelor’s Degree in English Literature with a minor in Philosophy from San Francisco State University.

Joey Shadeck is a Content Strategist and Research Analyst for ForexBrokers.com. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.