Brokers with trailing stop loss orders enable traders to set a stop at a certain percentage or number of points below a security’s market price. As the name suggests, the stop loss then trails behind the asset when the price shifts in an advantageous direction. The free risk management tool is commonly used when trading volatile assets, such as commodities and exotic forex pairs.
This guide explains how to set up a trailing stop loss using examples. We also list and review the best brokers with trailing stop losses in 2026. Read on to find out whether the popular risk management tool is good or bad.
Brokers With Trailing Stop Loss
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- Demo account
- Min. deposit: $0
- Min. trade: 0.01 Lots
73-89% of retail investor accounts lose money when trading CFDs -
- Demo account
- Regulator: ASIC, VFSC, FSA
- Platforms: MT4, MT5, cTrader, TradingView, DupliTrade
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- Demo account
- Regulator: ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Min. deposit: $0
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- Demo account
- Platforms: MT4, MT5, TradingCentral
- Min. deposit: $5
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- Demo account
- Regulator: FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms: TN Trader, MT4, TradingView
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- Demo account
- Min. deposit: $100
- Min. trade: 0.01 Lots
Learn how we test brokers and why you can trust our ratings.
Here is a short overview of each broker's pros and cons
- Pepperstone 4.8/5 Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 830,000 clients worldwide. It offers access to 1,400+ 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, helping to ensure a secure environment for day traders at all levels.
- Fusion Markets 4.6/5 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.
- FP Markets 4.2/5 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 day 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.
- XM 4.8/5 XM is a globally recognized forex and CFD broker with 20+ million clients in 190+ countries. Since 2009, this trusted broker has been delivering low trading fees across its growing roster of 1000+ instruments. It also offers a comprehensive MetaTrader experience that we've observed firsthand placing test trades.
- Trade Nation 4.4/5 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.
- AvaTrade 4.9/5 Established in 2006, AvaTrade is a leading forex and CFD broker trusted by over 400,000 traders. Operating under regulation in 9 jurisdictions, AvaTrade processes an impressive 2+ million trades each month. Through like MT4, MT5, and its proprietary WebTrader, the broker provides a growing selection of 1,250+ instruments. Whether it’s CFDs, AvaOptions, or the more recent AvaFutures, short-term traders at all levels will find opportunities. With terrific education and 24/5 multilingual customer support, AvaTrade delivers the complete trading experience.
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| Pepperstone | 3705 | ||||
| Fusion Markets | 10231 | ||||
| FP Markets | 10364 | ||||
| XM | 3077 | ||||
| Trade Nation | 2170 | ||||
| AvaTrade | 13616 |
Pepperstone
Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/5 support (18h a day on weekends). Pepperstone's comprehensive package, operating under ASIC regulation, makes them an obvious pick for traders in Australia, where it scooped DayTrading.com's 'Best Aus Broker' annual award for 2025.
Christian Harris, Reviewer
Pepperstone quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto CFDs, Spread Betting
- Regulator
- FCA, ASIC, CySEC, BaFin, DFSA, SCA, SCB, CMA-Kenya
- Platforms
- Pepperstone Trading Platform, MT4, MT5, cTrader, TradingView
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- Pepperstone has started providing trading in pre-IPO perpetual futures like SpaceX (SPCX.US-PERP) in select regions, such as the UAE.
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
- Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing and friendly agents knowledgeable about its products and trading tools.
Cons
- Execution may not feel as reliable in fast markets as headline speeds suggest. In our own testing, execution was fast at desired prices, but some community complaints focus on slippage, stop-loss fills and spread-sensitive order triggers during volatile conditions.
- Pepperstone has removed support for several tools that elevated the trading experience for active retail traders, notably Autochartist, Capitalise.ai and a free VPS for qualifying traders (now only pro traders in some countries).
- Overnight holding fees are higher than that found with some Market Maker brokers (usually Benchmark + 2.5%). This makes pepperstone an ideal broker for day traders and forex scalpers but less suitable for swing traders who often keep position open overnight.
Fusion Markets
Fusion Markets is a standout option for forex traders looking for excellent pricing with spreads near zero, industry-low commissions and recently TradingView integration. It’s a particularly good broker for Australian traders where the company is headquartered and regulated by the ASIC.
Jemma Grist, Reviewer
Fusion Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator
- ASIC, VFSC, FSA
- Platforms
- MT4, MT5, cTrader, TradingView, DupliTrade
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- Fusion Markets continues to impress with its pricing that provides tight spreads with below-average commissions that will appeal to active day traders.
- Withdrawal processing times have been slashed to under an hour and can be processed 24/7, making it faster and easier for active traders to withdraw any gains.
- The market analysis features, Market Buzz and Analyst Views, are great tools for discovering opportunities and conveniently integrated into the client dashboard.
Cons
- While the selection of currency pairs trumps most rivals, the broker's alternative investment offering is average with no stock CFDs beyond the US.
- The demo account expires after 30 days, limiting its potential as a useful trading tool alongside a real-money account.
- Fusion Market trails alternatives, notably IG, in the education department with limited guides and live video sessions to upskill new traders.
FP Markets
FP Markets strikes an ideal balance between affordability and quality for active traders. They’ve managed to keep trading costs low while expanding their investment offering, charting tools, and research features, all while providing excellent support you can rely on for urgent trading queries.
Christian Harris, Reviewer
FP Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto
- Regulator
- ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Platforms
- Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- FP Markets has integrated top-notch research tools from Trading Central and Autochartist, helping traders identify short-term opportunities based on chart patterns, indicators, and other technical factors.
- AI-powered sentiment analysis, trading signals and real-time NewsIQ research, integrated with MT4 and MT5, has been added via FP Markets Intelligence.
- FP Markets has a seamless onboarding experience, standing out with crypto deposits and over 10 base currencies, catering to global traders.
Cons
- FP Markets trails the best MetaTrader brokers, despite offering a Trader's Toolbox on MT4, just 130 instruments are available, limiting opportunities for serious traders, especially compared to Pepperstone with its 1,300 assets.
- While pricing in the Raw account is excellent, spreads in the Standard account trail the cheapest brokers with a 1.1-pip average spread on the EUR/USD compared to the 0.8-pip average at IC Markets.
- Although Traders Hub provides rich research, notably the Daily Report, Technical Report, Market Insights, and Fundamental Analysis, it needs to widen its daily content variety and keep its forex news updated to match category leaders like IG.
XM
With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders.
Christian Harris, Reviewer
XM quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, Energies
- Regulator
- CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
- Platforms
- MT4, MT5, TradingCentral
- Minimum Deposit
- $5
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, JPY, ZAR
Pros
- XM stands out for its commitment to trader education, with a wealth of well-presented resources, including webinars, tutorials, and even real-time trading sessions through XM Live.
- XM’s growing roster of 1,400+ instruments provides diverse short-term trading opportunities, with unique turbo stocks, fractional shares, and more recently thematic indices.
- XM has rolled out platform upgrades with integrated TradingView charts and an XM AI assistant, delivering faster execution, smarter analysis, and a sleeker, more intuitive trading experience.
Cons
- While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.
- XM relies solely on the MetaTrader platforms for desktop trading, so there’s no in-house downloadable solution for a more beginner-friendly user experience with unique features.
- XM is falling behind the curve by not offering cTrader, which is favored over MetaTrader by some serious traders for its smoother user experience and superior charting package.
Trade Nation
Trade Nation suits discretionary traders who want to speculate on major indices like the US 500 or liquid FX pairs, and want the predictable all-in costs of fixed spreads. In tests, we found the fixed-spread TN Trader environment particularly useful for trading around scheduled economic releases owing to its reliable charting environment and because published spreads stayed capped.
Christian Harris, Reviewer
Trade Nation quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Indices, Shares, Commodities, Futures, Bonds, Spread Betting (UK and Ireland only), Cryptos (Bahamas entity only)
- Regulator
- FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms
- TN Trader, MT4, TradingView
- Minimum Deposit
- $0
- Minimum Trade
- 0.1 Lots
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK
Pros
- Trade Nation's 2026 partnership with Volt has sped up payments for Australian traders, who can now make instant deposits and withdrawals using PayID, with the faster payout capabilities planned for clients in the UK and EU.
- The broker expanded into Europe with regulated online trading services after securing authorization from Portugal's CVMV, boosting its safety protections for European residents.
- Trade Nation accounts can now be linked with TradingView, providing advanced multi-charts and the ability to execute trades directly.
Cons
- There is no raw or ECN pricing tier, which are often prefered by day traders. No matter how much you deposit or trade, you use the same fixed (or variable on MT4) pricing as beginners, making it unsuitable for scalpers especially.
- Withdrawals can take up to five business days, which is around the industry average but slower than the 1-3 days we’re increasingly seeing brokers offer in an attempt to quash withdrawal complaints from retail investors.
- Offshore SCB and FSA entities allow retail clients up to 1:200 and 1:500 leverage compared to 1:30 in regions like the UK, Europe and Australia, so an FSA client can have 16 times the exposure of a UK retail client on the same trade, but with less oversight and no compensation scheme.
AvaTrade
AvaTrade offers active traders everything they need: an intuitive WebTrader, powerful AvaProtect risk management, a smooth 5-minute sign-up process, and dependable support you can rely on in fast-moving markets.
Jemma Grist, Reviewer
AvaTrade quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
- Regulator
- ASIC, CySEC, FSCA, ISA, CBI, JFSA, BVI, FSRA/ADGM, AFM, CMA-Kenya, CIRO (via Friedberg Direct)
- Platforms
- WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, ZAR
Pros
- The WebTrader excelled in our hands-on tests, sporting a user-friendly interface for beginners, complete with robust charting tools like 6 chart layouts and 60+ technical indicators.
- Support at AvaTrade performed excellently during testing, with response times of 3 minutes and localized support in major trading jurisdictions, including the UK, Europe and the Middle East.
- Years on, AvaTrade remains one of the few brokers offering a bespoke risk management tool, AvaProtect, that insures losses up to $1M for a fee and is easy to activate on the platform.
Cons
- While signing up is a breeze, AvaTrade lacks an ECN account like Pepperstone or IC Markets, which provides the raw spreads and ultra-fast execution many day traders are looking for.
- AvaTrade’s WebTrader has improved, but work is still needed in terms of customizability – frustratingly widgets like market watch and watchlists can’t be hidden, moved, or resized.
- The AvaSocial app is good but not great – the look and feel, plus the navigation between finding strategy providers and account management needs upgrading to rival category leaders like eToro.
How Does A Trailing Stop Loss Work?
The definition and purpose of a trailing stop loss is to limit losses or lock in returns by pulling out of the market before the value of an asset moves too far in an unfavorable direction. The investor essentially defines a percentage by which the price of a security would need to fall to automatically close out the position. The stop loss will remain active until either the trader cancels the order or the position is liquidated.
- If a trader is going long, the trailing stop should be placed below the current price
- If a trader is going short, the trailing stop should be placed above the current quote
The trailing stop should not be confused with a standard stop loss which is similar but set at a fixed amount/price rather than a percentage/number of points that moves in tandem with the position. Some day traders manually move a standard stop loss to replicate the benefits of trailing stop loss alerts and notifications, but this is time-consuming and unnecessary.
The trailing stop is particularly useful when there is market growth in your favour but then pulls back, because your trailing stop will move with the positive price trend but it won’t head in the other direction.
Note, a trailing stop loss will close the trade at the next available price which means there is a chance of slippage. To avoid this, a trader can set a guaranteed stop loss.
Example
To help understand how brokers with trailing stop loss orders work, let’s look at an example…
A swing trader buys one ounce of gold at $1,750. But instead of using a classic stop loss to sell their holdings if the price falls below $1,487.50, the investor places a trailing stop loss order at 15% below the current price.
Now if the price of gold falls to $1,487.50, the broker would automatically exit the position. But if the value of gold climbs, the trailing stop-loss would follow suit, staying 15% below the market value.
This means if the price of gold climbs to $2,500, the trailing stop loss would increase to $2,125. If the value of gold did then subsequently fall to $2,125, the position would be closed and the trader would take home a profit of $375 ($2,125 – $1,750). Note, this doesn’t take into account any broker fees.
Setting Up Tips
Consider the tips below when setting up a trailing stop loss:
- Try not to set trailing stops at a threshold that will trigger unnecessarily. A sensible amount is beyond 1.5 times the lowest price drop in the asset’s current range.
- Trailing stops should reflect a market’s current volatility, so if there is little movement in the value of an asset then the trailing stop will likely be closer to the current price.
- When using trailing stops on stocks that are experiencing significant price swings, moving averages are helpful to overlay. This can help to prevent a trailing stop from triggering unnecessarily due to a low swing in price.
- Don’t be overly reliant on trailing stops. Keep an eye on momentum as it could be worth adjusting the trailing stop if the asset is reaching an all-time high, for example.
- Trailing stop losses can also be used in premarket and after hours trading sessions. Just check your futures broker, for example, supports extended hours.
Other Risk Management Tools Explained
Interactive brokers with trailing stop loss orders also tend to offer other useful risk management tools. One popular solution is a take profit order which sets the price to sell an asset to safeguard any profits which have been made on a trade. The trader can continue to benefit from the price moving in a favourable direction but if the market was to swing in a way that could jeopardise profits, then the trailing stop can be used for damage control.
Another popular form of risk management is hedging. This is essentially the practice of taking out opposing positions on similar assets to cover any losses on original trades. Used correctly, a hedge can be an effective way to minimize risk exposure.
One strategy that can also be used in collaboration with the tools and strategies above is the 1% rule. This is where you do not risk more than 1% of your total portfolio on any single trade. You could invest slightly more than that, however, the key is to be disciplined and not to risk a small amount of your overall capital or deposit. This will mean that several bad trades won’t erode all your trading funds.
Bottom Line
Brokers with trailing stop loss orders provide an effective risk prevention tool. Trailing stops are available on most popular trading platforms and algorithms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Some brands also offer trailing stop options on their own in-house trading terminals. Trailing stops are available at several popular brokers, including Webull.
To prevent trailing stops from being triggered unnecessarily, research assets using moving averages and previous trends. This will help you choose thresholds which protect you from crashes, rather than cashing out during a dip that could be recovered from.
Use our list of top brokers with trailing stop loss orders to start trading today.
FAQ
What Is The Meaning Of A Trailing Stop Loss?
A trailing stop loss is a percentage-based threshold that can be set by the trader. If the value of an asset drops below this amount then it will be liquidated, though it does not guarantee execution at that exact price due to slippage. Importantly, the trailing stop should move in tandem with the original position if the market moves in the trader’s favour.
Is A Trailing Stop Loss A Good Idea?
Used correctly, brokers with trailing stop loss orders can help reduce risk exposure. Just make sure you have your trailing stop set beyond a level that could be triggered by ordinary market trends. This will help to avoid preemptive losses that could be easily recovered.
What Can I Do About Trailing Stop Losses Not Working?
If your trailing stop loss did not work, the best thing to do is to head to a demo account to refine your approach. You can also consider other risk management strategies.
Are Trailing Stop Losses A Suitable Form Of Risk Management For Beginners?
As long as you learn how to use them effectively, trailing stop losses can be a useful tool for all levels of traders. If you are new to trading, practice using brokers with trailing stop loss orders in a demo account first. You can then upgrade to a real-money account when you feel confident.
Which Is Better Stop Loss Or Trailing Stop Loss?
This will ultimately come down to trader preference. A standard stop loss is arguably easier to understand, but trailing stops provide greater flexibility – they will move with the market when it shifts in your favour but limit losses if it turns the other way.
How Long Does A Trailing Stop Loss Last?
Traders can decide how long they want a trailing stop loss to run on their platform. With that said, a trailing stop loss will usually run until the investor cancels the order or the position is liquidated.