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
- Platforms: MT4, MT5, TradingCentral
- Min. deposit: $5
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- Demo account
- Min. deposit: $100
- Min. trade: 0.01 Lots
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- Demo account
- Regulator: FSC
- Platforms: R StocksTrader, MT4, MT5, TradingView
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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, CySEC, FSA, SCB, CMA-Kenya
- Min. deposit: $200
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- Demo account
- Regulator: FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms: MT4, MT5, TradingView, TradeLocker
71.28% of retail traders lose money when trading CFDs
Learn how we test brokers and why you can trust our ratings.
Here is a short summary of why we think each broker belongs in this top list:
- 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.
- 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.
- RoboForex 4.5/5 RoboForex is an online broker, established in 2009 and registered with the FSC 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.
- 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.
- IC 4.8/5 IC Markets (now IC) 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 200,000 clients from over 200 countries.
- Eightcap 4.6/5 Eightcap is a multi-regulated forex and CFD broker established in Australia in 2009. The broker has proven popular with active day traders, providing 800+ instruments with tight spreads and notable improvements in recent years, integrating the leading TradingView platform, alongside AI-powered financial calendars and algo trading tools with zero coding experience required.
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 |
|---|---|---|---|---|---|
| XM | 3077 | ||||
| AvaTrade | 13616 | ||||
| RoboForex | 775 | ||||
| Pepperstone | 3705 | ||||
| IC | 2 | ||||
| Eightcap | 3908 |
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 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.
- XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
Cons
- 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.
- Although trusted and generally well-regulated in some regions, XM also has global entities registered with the weak regulators like FSC (Belize) and FSA (Seychelles), whilst UK clients are no longer accepted, reducing its market reach.
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.
- 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.
- 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.
RoboForex
RoboForex is great if you want a vast range of 12,000+ day trading markets with ECN accounts, powerful charting and loyalty promotions. It also stands out for stock traders with its user-friendly R StocksTrader platform, featuring 3,000+ shares, fees from $0.01 and sophisticated watchlists.
Christian Harris, Reviewer
RoboForex quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Crypto
- Regulator
- FSC
- Platforms
- R StocksTrader, MT4, MT5, TradingView
- Minimum Deposit
- $10
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR
Pros
- The R Stocks Trader platform rivals leading solutions like MT4, with netting and hedging capabilities, comprehensive backtesting, Level II pricing, and a flexible workspace.
- RoboForex offers over 12,000 instruments, providing more short-term trading opportunities than the vast majority of online brokers, with forex, stocks, indices, ETFs, commodities, and futures.
- In 2026, RoboForex introduced swap-free trading across all accounts, removing overnight interest charges, and potentially appealing to swing forex traders, though spreads and commissions may still apply.
Cons
- RoboForex provides a variety of account types, which, while offering flexibility, can be overwhelming for newer traders trying to choose the most suitable option for their trading style. Alternatives, notably eToro, provide a smoother entry into online trading with one retail account.
- Despite 15+ years in the industry and registering with the Financial Commission, RoboForex is authorized by one ‘Red-Tier’ regulator – the FSC in Belize, lowering the level of regulatory protections for traders.
- Despite offering a range of platforms, RoboForex still doesn't support the increasingly popular cTrader. This might deter traders who prefer this specific platform for their day trading activities and is available at firms like Fusion Markets.
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).
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
- 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.
- Pepperstone has started providing trading in pre-IPO perpetual futures like SpaceX (SPCX.US-PERP) in select regions, such as the UAE.
- Offers a dedicated CopyTrading app for traders who want a less active approach to trading, available in some countries.
Cons
- 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.
- 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.
IC
IC (formerly IC Markets) offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders.
Christian Harris, Reviewer
IC quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
- Regulator
- ASIC, CySEC, FSA, SCB, CMA-Kenya
- Platforms
- MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower
- Minimum Deposit
- $200
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- IC offers fast and dependable 24/7 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- IC offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
Cons
- While IC offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
Eightcap
Eightcap delivers in every area for day traders with a growing selection of charting platforms, education via Labs, and AI-powered tools. Now sporting 120+ crypto CFDs, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row.
Christian Harris, Reviewer
Eightcap quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs in Forex, Stocks, Indices, Commodities, Crypto
- Regulator
- FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms
- MT4, MT5, TradingView, TradeLocker
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, SGD
Pros
- Eightcap stands out with a selection of powerful trading tools and resources, including MT4 and MT5, and more recently the 100-million strong social trading network TradingView.
- Having excelled across all key areas for day traders, Eightcap outperformed every competitor to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title for 2025 and 'Best TradingView Broker' for 2025.
- With tight spreads from 0 pips, low commission fees, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
Cons
- Despite a useful library of educational guides and e-books in Labs, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
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.