Brokers With Trailing Stop Loss

Brokers with trailing stop loss help investors take advantage of an asset’s growth while still providing a safety net in the case of a trade not working out. Alongside the take profit order, trailing stop loss orders are one of the most popular methods of managing risk.

This guide to trading with trailing stop losses will explain how they work, their pros and cons, plus how to set up a trailing stop loss order. We also list top UK brokers with trailing stop loss.

Brokers With Trailing Stop Loss

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    Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

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    Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

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    AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, from CFDs to AvaOptions and now AvaFutures, alongside a comprehensive education center and multilingual customer support.

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    FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.

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    IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

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    City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.

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    Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.

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    RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.

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    Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

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    InstaForex is a forex and CFD broker founded in 2007. The broker offers diverse market coverage to millions of clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs.

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    OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It remains a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.

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    Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.

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    BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.

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    Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

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    Founded in 2006, FxPro is an established forex, CFD and spread betting broker offering 2100+ assets to over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers reliable 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.

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    Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.

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    Founded in 2001, easyMarkets is a multi-regulated forex broker offering leveraged trading opportunities on forex, stocks, indices, commodities and crypto. With fixed spreads, an affordable initial deposit, regulation from several reputable bodies and a diverse selection of account currencies, this broker provides simple and straightforward trading solutions to a diverse range of traders.

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    Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

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    GO Markets is an established forex and CFD broker with multiple industry awards and accolades. The ECN/STP broker is popular with budding traders, offering competitive accounts in multiple base currencies and a range of flexible payment methods. With top-tier regulation from CySEC and ASIC, GO Markets is a trusted broker.

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    Founded in 2008, NordFX is an offshore CFD broker offering forex, stock, commodities, indices and crypto trading to over 1.7 million clients in 190 countries. Traders access markets through the MT4 and MT5 platforms and benefit from low commissions, spreads from zero and decent extra features. Minimum deposits start from just $10 and very high leverage is available up to 1:1000.

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    Markets.com is a respected broker, offering multi-asset trading opportunities through CFDs or spread betting (UK only). Established in 2008, the brand has an impressive 4.3 million registered customers and is overseen by trusted regulators, including the FCA, ASIC and CySEC. 79.1% of retail accounts lose money.

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    FXCM is a respected forex and CFD broker, established since 1999. The British-headquartered broker has won multiple awards and operates in various jurisdictions, including the UK and Australia. With zero commissions, over 400 assets, and a range of analysis tools, FXCM remains a popular choice for traders. The broker is also regulated by top-tier authorities including the FCA, ASIC, CySEC, FSCA, BaFin.

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    Axi is a global forex and CFD trading firm, founded in 2007 in Sydney, Australia. Highly leveraged trading opportunities plus a $0 minimum deposit make it a popular choice among 60,000+ traders worldwide. Axi also stands out for its resources, including copy trading and Autochartist.

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    EagleFX is a forex and CFD broker, established in 2019. The broker uses STP execution on the MT4 platform, offering tight spreads and low commissions. With leverage up to 1:500 and no restrictions on hedging or scalping, EagleFX is an attractive option for short-term traders.

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    Founded in 2015, VT Markets maintains its position as a top Australian multi-asset CFD broker. With 1000+ tradeable instruments and support for the MetaTrader 4 and MetaTrader 5 platforms, this broker delivers a wide range of trading opportunities to over 200,000 clients worldwide. VT Markets is regulated by the ASIC, FSCA, and FSC.

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    Tradeview is an offshore forex and CFD broker based in the Cayman Islands and regulated by CIMA. Traders can access over 5000 instruments with a minimum deposit of $100. There are several third-party platforms on offer, including MetaTrader 4 (MT4) and cTrader.

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    FXDD is an established forex and CFD broker founded in 2002. Regulated in Malta, Mauritius, Peru and Malaysia, the broker provides secure trading platforms, competitive ECN spreads and reliable 24/7 customer support. Competitive pricing and ultra-low latency is also offered via the broker's Direct Market Access execution model and tier 1 aggregated liquidity.

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    FXTrading.com is global broker offering highly leveraged CFDs on 10,000+ assets, including forex, stocks, indices, commodities and cryptocurrencies. Competitive prices with raw spreads and low to zero commissions are available. Traders can use the popular MetaTrader 4 platform and will have access to a suite of additional analytical tools and other resources. The multi-regulated brokerage is authorized by the ASIC and VFSC.

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    M4Markets is an award-winning broker regulated by the CySEC, FSA and DFSA. Although relatively new, the broker continues to improve its offering with a range of innovative tools, platforms and accounts. Beginners can start with just $5, whilst experienced investors can access leverage up to 1:5000.

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    Founded in 2010, ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. The broker provides services to over 450,000 accounts from 11 global offices. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies.

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    Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.

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    Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.

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    IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.

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    Ingot Brokers is a multi-regulated brokerage established in 2006. The broker offers CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options.

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    Scope Markets offers trading and investing in multiple spot and CFD instruments. The group of brokers is regulated in several locations, including Belize, Kenya and South Africa. Users get competitive trading conditions, a range of payment methods, strong support and can get started in a few straightforward steps.

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    4xCube is an online forex and CFD broker registered and licensed in the Cook Islands. Clients can trade on popular financial markets and choose between three accounts based on their capital and trading strategy.

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    Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading.

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    RockGlobal is a New Zealand based and regulated CFD broker. They offer competitive spreads from 0.1 pips and a large range of trading assets, trading platforms and educational services, with up to 1:500 leverage. Operating in a Tier 1 regulated environment, RockGlobal offers peace of mind and excellent customer support.

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    xChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.

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    Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.

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    GoFX is an unregulated CFD and forex broker that covers instruments from currency, stock, index, commodity and crypto markets. Traders can sign up to a variety of account types with deposits as low as $1 and will trade using the popular MetaTrader 4 platform. Exceptionally high leverage up to 1:3000 is offered on the standard account, while traders with the low-spread account can access leverage up to 1:1000.

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    OspreyFX is an ECN broker headquartered in St. Vincent and the Grenadines. Established in 2019, the firm offers 120+ forex and CFD assets with high leverage up to 1:500, tight spreads from 0.1 pips and round-the-clock customer support. OspreyFX also stands out for its funded trading accounts where traders can keep up to 70% of profits.

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    Errante is a Cyprus-based and regulated forex and CFD broker with leveraged trading on multiple assets, tiered accounts including a zero-spread option, and copy trading support. The broker offers leveraged trading up to 1:30 under its CySEC-regulated branch and 1:500 from an offshore branch, and supports the MetaTrader 4 and MetaTrader 5 platforms. Errante's asset list is relatively limited but it does offer fast execution and low latency, and it is a trustworthy brand.

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    Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.

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    LonghornFX is a forex and CFD broker offering over 150 instruments with leverage up to 1:500. The firm is registered in Saint Vincent and the Grenadines and was launched in 2020. Clients can access a strong selection of cryptos, alongside forex, indices, commodities and stocks. With ECN/STP processing, this offshore broker promises tight spreads and fast execution.

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    Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.

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    TMGM is an ASIC-regulated forex and CFD broker with a vast range of tradeable assets covering forex, stock, index, crypto and commodity markets. The account types on offer provide a flexible choice between no commission or zero spreads, with competitive pricing all-round.

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    Anzo Capital is an offshore broker that offers leveraged CFDs on 100+ instruments including forex, stocks, indices and metals. The MetaTrader 4 and MetaTrader 5 platforms are supported, and traders can choose between an STP account with spreads starting from 1.4 pips and zero commission, or an ECN account with a $4 round-turn commission and spreads from zero. A decent range of payment methods are accepted, including crypto deposits.

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    Switch Markets is a multi-asset CFD brokerage, regulated by ASIC and SVGFSA. The new brand offers trading on the MT4 and MT5 platforms and leverage up to 1:500. The broker boasts over 2000+ instruments, with some additional tools including copy trading services and free VPS hosting.

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    Pacific Union Prime is an FSCA and offshore-regulated multi-asset broker offering competitive fees and direct market access on forex, commodities, stocks, bonds and indices. The broker supports the popular MetaTrader 4 and MetaTrader 5 platforms and a proprietary mobile app. Fees vary by account type with no commission and spreads from 1.9 pips on the Standard account and $7 commission per lot and spreads from 0.4 pips on the Prime account.

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    AdroFx is an offshore ECN/STP broker that has offered CFD trading since 2018. The firm supports 100+ tradable assets on the popular MetaTrader 4 platform as well as a web trader, Allpips. Eight live accounts are available with no restrictions on trading strategies.

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    RoboMarkets is a Cyprus-based forex, CFD and stock broker aimed at traders from Europe. The broker offers thousands of instruments across six asset classes and provides access to four leading platforms, including MetaTrader 4. With ECN pricing, Cent accounts and algorithmic trading tools, RoboMarkets caters to a range of trading strategies and investing styles.

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    MultiBank FX is an established broker offering forex and CFD products since 2005. With 20,000+ instruments, plenty of local payment methods and 24/7 multilingual customer support, the broker is a popular choice among traders globally. New clients can also access a variety of bonus offers and access the hugely popular MT4 and MT5 trading platforms.

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    Global Prime is a multi-regulated trading broker offering 150+ markets. Traders can get started with a $200 minimum deposit and trade with leverage up to 1:100. The firm also has a high trust score and a good reputation with a license from the ASIC.

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    ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The award-winning brokerage has secured licenses from trusted bodies, notably the UK’s FCA, and facilitates trading on over 1000 instruments spanning 7 asset classes, with over 93.60% of orders are executed at the requested price.

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    Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.

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    SimpleFX is an online broker specializing in CFD and cryptocurrency trading, with multi-currency accounts, STP execution, low pricing and no minimum deposit. Bringing innovation and gaining recognition at numerous industry events since 2014, SimpleFX now caters to retail traders from over 190 countries, boasting a client base exceeding 200,000 active users.

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    EZ Invest is a CySEC-licensed broker, launched in 2008, that offers trading on popular financial markets through leveraged CFDs. Traders can choose between multiple respected platforms, including MetaTrader software and a user-friendly in-house app. The reliable multilingual customer support team are also on-hand to support new users.

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    Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.

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    Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.

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    HYCM is an online broker with authorization from four international bodies including the FCA and CySEC. The broker offers short-term CFD trading on forex, shares, commodities, indices, ETFs and Bitcoin, and supports the MT4 and MT5 platforms, as well as Trading Central analysis.

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    FXOpen is a multi-asset broker with regulation from several trustworthy bodies including the UK's FCA. The broker offers CFD trading on forex, stocks, commodities, indices, cryptocurrencies and ETFs via the MetaTrader 4 & 5 and TradingView platforms.

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    Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.

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    Hantec Markets was established in Hong Kong in 1990. Initially, the company concentrated solely on the Chinese and Taiwanese markets. In 2008, the broker rebranded and expanded its presence in the UK, Australia, Japan, and various other countries, before enhancing its footprint in Latin America in 2022. Hantec now stands as a multinational brokerage with 18 offices across Europe and Asia.

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    Established in 2013, SuperForex is an offshore CFD and forex broker offering highly leveraged trades on 400+ instruments via the popular MetaTrader 4 platform. The broker has gained clients in over 150 countries and is regulated by the Belize IFSC. With a range of STP/ECN account types, including swap-free, micro and zero spread, this broker continues to suit traders with different styles and setups. SuperForex also offers a range of welcome bonuses and trading contests.

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    Admirals is a multi-regulated broker with an excellent range of leveraged instruments, including forex, stocks, indices, ETFs, commodities, cryptos and more. The broker supports the MetaTrader 4, MetaTrader 5 and TradingCentral platforms. With both spread betting and CFDs available and thousands of instruments, this broker provides more flexibility than most rivals.

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    Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.

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    World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.

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    FXPrimus is an award-winning CySEC-regulated brokerage offering CFD trading on 200+ instruments via the MetaTrader 4, MetaTrader 5 and cTrader platforms. The choice between a competitive commission-free account and two affordable raw spread options make this an accessible broker for anyone seeking forex, stocks, indices and commodities with high leverage.

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    Vault Markets is an award-winning brokerage headquartered in Namibia. It is an accessible direct-market-access CFD broker with affordable minimum deposits, flexible funding methods and high leverage. This broker offers a very large range of forex pairs as well as commodities and indices through MetaTrader 4 or MetaTrader 5.

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    Exinity provides flexible low-cost trading in FX, commodities, indices and equities alongside unique education and support provided by teams located across the world. Now operating in the Middle East, through regulation from the Financial Services Regulatory Authority in Abu Dhabi and the Financial Services Commission of Mauritius, Exinity provides a range of services to traders and investors looking for new opportunities in the financial markets.

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    FXTM is a top-rated forex and CFD broker established in 2011 and operating across four continents. The company is secure and regulated by leading authorities, including the FCA. Offering 1000+ markets and three account types, they cater to all levels of trader.

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    Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.

What Is A Trailing Stop Loss?

A stop loss order is a risk management tool that helps to limit the total loss and therefore risk associated with a trade. It is an automated order that triggers the closing of a contract when an asset’s value reaches a certain amount. This amount is called the stop price.

A trailing stop loss is a type of stop loss order that allows the stop price to change so that investors can secure profits if the market moves in their favour. For instance, if you open a long CFD trade and the asset increases in value immediately after you open the contract, the stop price will follow the increase. If the asset then declines in value and hits the trailing stop price, the investor will have secured a greater return than if they had used a normal stop loss order.

Brokers with trailing stop loss allow their clients to determine the trailing distance either using a percentage or a fixed amount. For example, the trailing stop loss could be 10% away from the market price or £10 away.

How Does It Work?

Let’s look at an example of how a trailing stop loss could work…

The current value of Barclays stock listed on the London Stock Exchange is 161 GBP. Let’s say you open a buy contract with a trailing stop loss at a 5% decrease, which at open is 152.95 GBP. After the contract opening, BARC.L initially increased to 173 GBP but is now worth 140 GBP.

If you had used a normal stop loss order, you would have made a loss of 8.05 GBP (161 GBP – 152.95 GBP). However, with
a trailing stop loss, the stop price would have increased to 164.35 GBP (173 GBP x .95) following the initial market growth. Meaning when the stock price declined again, the new limit would be triggered and you would return a profit of 3.35 GBP (161 GBP – 164.35 GBP).

In this example, the profit and loss in each instance are not large but they show how a trailing stop loss can be beneficial, especially compared to normal stop loss orders.

Pros Of Brokers With Trailing Stop Losses

Brokers with trailing stop loss orders can help limit your risk exposure, especially when trading on margin with products such as CFDs. Leverage increases your trade size meaning any profits and losses are multiplied. If 1:10 leverage had been used in the example above, the returns would be 33.5 GBP (10 x 3.35 GBP), rather than 3.35 GBP.

Incorporating a trailing stop loss order essentially helps to protect you against large losses on leveraged trades, while providing the flexibility to generate returns if the market moves in your favour.

Additional Risk Management Measures

Brokers with trailing stop loss usually also offer other orders such as take profit. A take profit order works in a similar way to a stop loss such that when an asset’s value reaches a certain price, the contract is automatically closed. These can be used alongside trailing stop loss orders to help secure profit from a winning position.

In the Barclays stock example above, if a take profit order had been placed at 170 GBP, the position would have been closed on the initial rise and a 9 GBP profit would have been returned (170 GBP – 161 GBP).

You can also use risk management techniques such as the 1% rule and portfolio diversification. The 1% rule says that you should only invest 1% of your total capital on a single trade so that an individual loss is not too damaging.

Diversifying your portfolio means spreading your money across several investments and assets. Doing this will mean there will be less impact on your entire portfolio if one or two trades go wrong.

Both of these strategies can mean that huge profits in a short space of time are less likely, but long-term, more consistent success is possible with reduced risk exposure.

For more tips on risk management techniques, check out our guide.

How To Set Up A Trailing Stop Loss Order

It is an easy process to add a trailing stop loss to your trade. This step-by-step guide is for Interactive Brokers but other trading platforms with trailing stop loss orders follow a similar method either through a mobile app or desktop terminal.

  • Log in to your account and open the trading platform
  • Select the asset you want to trade from the drop-down menu and create your order
  • Select ‘TRAIL’ from the order type menu
  • Input the amount or percentage for the trailing stop loss order. Note that this is the most recent traded value minus the amount or percentage
  • Select the time limit for the trail order. If you wanted, you can enable the trailing stop loss order to apply for only a few hours
  • Confirm the order
How long does a trailing stop loss last?

Using trailing stop loss orders on Interactive Brokers

Trailing Stop Loss Tips

When using brokers with trailing stop loss, you need to plan out where the initial stop price should be. To do this, consider both daily and longer-term volatility. If you put the stop price really close then the stop loss order could be triggered too early due to typical hourly fluctuations. If you put the stop price too far away then the stop order may not be triggered until you have incurred a large loss.

Additionally, you should not just open a trade with a trailing stop loss order and ignore it until the contract closes. You need to monitor the trade to check the asset’s performance as the market could see growth and you could reset the stop price even higher, or vice versa for a short position. It may be worthwhile setting up a notification algorithm such that you receive an alert if the asset’s value reaches a certain amount, prompting a stop price change.

Implementing trailing stop loss orders can be difficult as it requires market knowledge to recognise what the best starting stop prices are. An ideal way to get experience is through a demo account. Many brokers with trailing stop loss allow their customers to register for a paper trading account where they can invest simulated funds in a risk-free environment.

Once you have gained enough experience with trailing stop loss orders and other risk management techniques, you can move on to live trading.

Comparing Brokers With Trailing Stop Loss

To help you choose the best brokers with trailing stop loss, consider the following factors:

Trading Platform

The trading platform that brokers with trailing stop loss use will have a large impact on your trading experience. You will use these platforms to execute trades, monitor positions and complete any technical analysis, so it is important to find a high-quality platform.

Some brokers such as Admiral Markets and AvaTrade use the world-leading MetaTrader4 (MT4) and MetaTrader 5 (MT5) platforms. Others, such as eToro, provide proprietary platforms.

Regulation

Trade with a broker licensed by the Financial Conduct Authority (FCA). As the UK’s financial regulatory authority, it mandates that licensed brokers must guarantee negative balance protection for all retail clients. This acts akin to a stop loss order so that you will never make a loss in excess of what you have deposited into your brokerage account.

Pricing

Reliable brokers with trailing stop loss will be clear about their prices including spreads, account subscription charges, deposit and withdrawal fees, and any trading commissions.

Keep in mind that any fees will eat away at your profits, so try to find competitively priced brokers that still offer a good service.

Often, if brokers advertise themselves as “free” or there is no trading commission, the quoted spreads will be wider than average.

Ratings & Reviews

You can read customer reviews and ratings to get an idea of how good or bad a broker with trailing stop loss is. This is how you can find out if the broker charges hidden fees or if there are frequent reliability and outage issues.

Reviews can be found on websites and trading forums such as Reddit, Facebook, Discord and Quora. Alternatively, we have reviewed and compared the top brokers with stop loss orders here.

Deposits & Withdrawals

The best brokers will have several options for transferring capital between your bank and trading accounts. Look for methods such as debit/credit cards and e-payments such as PayPal and Neteller.

Also, if you are new to trading, choose a platform with low or no minimum deposit and withdrawal requirements. For example, Pepperstone imposes no minimum deposit or withdrawal limit, making it one of the more affordable brokers with trailing stops.

Customer Support

Choose a broker with trailing stop loss orders that is contactable throughout the week with fast responses. For example, via live chat on the website, over the phone or through email.

Note that if your trailing stop loss did not work, it may be due to orders not processing after hours. Charles Schwab, for example, does not process stop loss orders during pre-market or post-market trading.

Bottom Line On Brokers With Trailing Stop Losses

So, is using trailing stop loss a good idea? It certainly can be. Trailing stop loss and take profit orders can help lock in profits while providing a flexible risk management tool that tracks your position when the market moves in your favour.

Use this guide to set up a trailing stop loss. And see our list of the best brokers with stop losses to find the right platform.

FAQ

Should I Use A Stop Loss Or Trailing Stop Loss Order?

Both stop loss and trailing stop loss orders are viable ways of reducing your risk exposure. A normal stop loss order is easier to understand and implement, however, a trailing stop loss offers the benefit of following positive market movements. To help you determine which is better out of the stop loss and trailing stop loss, you can practise with a paper trading account.

Is It A Good Or Bad Idea To Use Brokers With Trailing Stop Loss?

It can be an excellent idea to use brokers with trailing stop loss orders. It can be difficult to figure out how to best set up a trailing stop loss order but once you have learned how to identify the right initial stop price, it is an invaluable risk management tool.

What Are The Best Strategies To Use With Brokers With Trailing Stop?

When day trading with brokers with trailing stop losses, there are several strategies you can adopt. For example, a hedge, arbitrage or scalping strategy are all viable options. It is hard to say which of these is the best as that is dependent upon a trader’s financial goals and trading styles. A good idea would be to register a demo account and try out different strategies until you find a system you are comfortable with.

Will Using Brokers With Trailing Stop Loss Remove Risk Altogether?

No – because all trades carry a degree of risk. Using a broker with trailing stop losses may reduce your exposure, but you can still lose money. With that in mind, only risk what you can afford to lose.

Where Can I Learn More About Brokers With Trailing Stops?

Many of the best brokers have education sections with FAQs for beginners where you can have definitions and trading concepts explained. Brokers with trailing stop loss orders also often provide step-by-step videos to guide you through deciding how to execute a trade with a stop loss and how long a stop loss needs to last.