Retail leverage on major currency pairs is capped at 30:1 in the UK, the EU and Australia, at 50:1 in the United States, at 25:1 in Japan and at 20:1 in Singapore. Offshore regulators generally leave the limit to the broker.
What are the limits in each jurisdiction?
| Jurisdiction | Regulator | Maximum retail leverage on major pairs |
|---|---|---|
| United Kingdom | FCA | 30:1 |
| European Economic Area | National regulators under ESMA rules | 30:1 |
| Australia | ASIC | 30:1 |
| United States | CFTC / NFA | 50:1 |
| Japan | JFSA | 25:1 |
| Singapore | MAS | 20:1 |
| South Africa | FSCA | No regulatory cap |
| Offshore centres | Various | Set by the broker |
Limits are lower for minor pairs, gold, indices and crypto. Rules change, so confirm the current figure with the regulator.
Why do regulators cap leverage?
Regulators cap leverage because their own data showed that most retail CFD accounts lose money and that higher leverage makes losses faster and larger. The caps came with negative balance protection and standard risk warnings.
Is higher leverage better?
Higher leverage does not improve a strategy; it only lets you take a larger position with the same deposit. A move of 1% against a position at 100:1 wipes out the whole margin. Use the position size calculator to work back from the amount you are prepared to lose.