What a leverage limit means
A leverage limit is often written as the minimum margin you must put up for a trade. A 30:1 limit (often written 1:30) means you need margin of at least about 3.33% of the trade size. Use the margin calculator to see the margin you need, and the forex glossary for the terms.
A limit does not stop a broker from offering lower leverage, and you do not have to use the maximum.
Limits confirmed in official sources (retail accounts)
Listed in alphabetical order.
Scroll the table sideways to see all columns →
| Country or region | Regulator | Major currency pairs | Others (examples) | Source |
|---|---|---|---|---|
| Australia | ASIC | 30:1 | Minor currency pairs, gold, major stock indices: 20:1 | [1][2] |
| European Union (example: Cyprus) | CySEC | 30:1 | Non-major currency pairs, gold, major stock indices: 20:1 | [3][4][5] |
| Hong Kong | SFC | 20:1 (initial margin 5%) | Same for all currency pairs | [6] |
| Japan | FSA | 25:1 | Same for all currency pairs (margin of at least 4%) | [7] |
| Kenya | CMA | 400:1 (see note below) | No difference by currency pair or underlying asset | [8] |
| United Arab Emirates (Dubai International Financial Centre) | DFSA | about 30:1 (3.3%) | Non-major currency pairs, gold, major stock indices: 20:1 (5%) | [9] |
| United Kingdom | FCA | 30:1 (3.33%) | Non-major currency pairs, gold, major stock indices: 20:1 (5%) | [10] |
| United States | CFTC, NFA | 50:1 (2%) | Other currencies: 20:1 (5%) | [11][12] |
(Checked against official regulator sources and published regulations on October 12, 2026. Rules can change. Each regulator defines which currencies count as "major." In the US, the major currencies are the British pound, Swiss franc, Canadian dollar, Japanese yen, euro, Australian dollar, New Zealand dollar, Swedish krona, Norwegian krone and Danish krone.[12] In Australia, a major currency pair is any two of the Australian dollar, British pound, Canadian dollar, euro, Japanese yen, Swiss franc and US dollar.[1])
Retail and other clients: these limits are for retail clients. In the UK, the rules apply to firms' dealings with retail clients, so accounts a broker has classed as professional are not covered by them.[10] In Australia, the order does not apply to professional, sophisticated and other wholesale clients.[18] Whether you can be classed as professional or wholesale depends on the rules in each place.
- Australia: The order that sets these limits has been extended to May 23, 2027.[2] Check ASIC's website for the latest.
- European Union: In 2018, the European Securities and Markets Authority (ESMA) set EU-wide limits (30:1 for major currency pairs, and so on).[3] Between 2019 and 2020, national regulators in EU countries adopted their own measures, which replaced ESMA's temporary measures.[4] Cyprus in the table is one example.[5] For other EU countries, check with that country's regulator.
- Japan: 25:1 is the limit for brokers registered with the FSA when they trade with individuals.[7]
- Kenya: The text of the regulation (regulation 19) only says leverage must not exceed 400 times the client's deposit; it sets no condition such as trade size. But the regulation also allows the regulator to revise the ratio by circular.[8] Conditions (such as trade size) may apply through circulars or other notices, so check the current ratio and any conditions in the regulation itself and in the regulator's announcements.
- Turkey: The Capital Markets Board (SPK) announced a 10:1 limit in 2017.[13] The rules have been amended since, so we could not confirm the current limit.
Other rules besides the limit
In Australia, the UK, the EU (Cyprus) and the Dubai International Financial Centre, retail accounts also have rules such as these:[1][5][9][10][18]
- Positions are closed when your account equity falls below 50% of the margin (the exact measure differs by regulator)
- You cannot lose more than the money in your account (negative balance protection)
In the United States, an NFA rule also requires forex dealers to close positions on the same pair oldest first (first-in, first-out). See the FIFO rule for US forex accounts.
For other countries and regions, check with the regulator where you live.
Countries with rules on where you can trade
In many countries, only brokers registered with that country's regulator may offer forex to individuals. These are examples of countries with specific rules on where you can trade:
- Brazil: Brokers that offer forex to residents of Brazil must be registered with the Securities and Exchange Commission of Brazil (CVM) or work through a CVM-registered local firm.[14]
- India: Residents who carry out permitted forex transactions electronically may do so only on electronic trading platforms authorized by the Reserve Bank of India (RBI) or on recognized exchanges (NSE, BSE and MSE). Trading on unauthorized platforms may lead to penalties under India's Foreign Exchange Management Act (FEMA).[15]
- Mainland China: According to the authorities, no institution has been approved to offer foreign exchange margin trading in mainland China.[16]
- Nigeria: The Securities and Exchange Commission (SEC) has published proposed rules for online forex and CFD trading (still a proposal).[17]
Countries and regions not in this list
We could not confirm the limits for Canada, New Zealand, Singapore, South Korea, Switzerland, EU countries other than Cyprus (such as Germany), Israel, Mexico, South Africa, Malaysia, Indonesia, the Philippines and others in official regulator sources this time, so they are not listed. Please check your regulator's official website. We will add them as we confirm them.
Why limits differ
Many regulators set limits to reduce losses in retail accounts. For example, ESMA explained its 2018 measures by citing national regulators' analyses, which found that 74–89% of retail CFD accounts lost money.[3] How high a limit is depends on each country's market and approach. Higher available leverage also means losses can be larger.
If losses are hard for you, or you find it hard to stop even when you want to, you do not have to deal with it alone. Many countries and regions have support services for money worries or compulsive behavior.
Sources
- Australian Securities and Investments Commission (ASIC). ASIC product intervention order strengthens CFD protections (20-254MR). ASIC media release (2020)
- Australian Securities and Investments Commission (ASIC). ASIC's CFD product intervention order extended for five years (22-082MR). ASIC media release (2022)
- European Securities and Markets Authority (ESMA). ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors (March 27, 2018). https://www.esma.europa.eu/node/84933
- European Securities and Markets Authority (ESMA). Product intervention. https://www.esma.europa.eu/investor-corner/product-intervention
- Cyprus Securities and Exchange Commission (CySEC). Policy Statement PS-04-2019. CySEC (PDF)
- Securities and Futures Commission (SFC). Code of Conduct for Persons Licensed by or Registered with the SFC, Schedule 6. SFC Code of Conduct (PDF)
- Financial Services Agency, Japan. いわゆる外国為替証拠金取引について (About so-called foreign exchange margin trading) [in Japanese]. https://www.fsa.go.jp/ordinary/iwagai/
- Kenya Gazette Supplement No. 133 (August 25, 2017). The Capital Markets (Online Foreign Exchange Trading) Regulations, 2017 (Legal Notice No. 226), regulation 19. Parliament of Kenya Library. Text as amended up to October 6, 2023 (regulation 19 unchanged): Kenya Law
- Dubai Financial Services Authority (DFSA). Conduct of Business Module (COB) 6.16.6–6.16.8. https://dfsaen.thomsonreuters.com/rulebook/cob-6166
- Financial Conduct Authority (FCA). FCA Handbook, COBS 22.5. https://www.handbook.fca.org.uk/handbook/COBS/22/5.html
- U.S. Code of Federal Regulations. 17 CFR 5.9 Security deposits for retail forex transactions. https://www.ecfr.gov/current/title-17/chapter-I/part-5/section-5.9
- National Futures Association (NFA). Financial Requirements, Section 12. nfa.futures.org
- Capital Markets Board of Turkey (SPK). Amendment to Communiqué III-37.1 (2017). SPK announcement
- Comissão de Valores Mobiliários (CVM). Mercado Forex: qual o posicionamento? CVM FAQ
- Reserve Bank of India. Foreign Exchange (Forex) Transactions — FAQs (updated August 28, 2024). https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=3347
- State Administration of Foreign Exchange, Jiangsu Branch (January 7, 2019). https://www.safe.gov.cn/jiangsu/2019/0107/483.html
- Securities and Exchange Commission, Nigeria. Proposed Rules on Online Forex Trading and Contract for Difference (CFD). SEC Nigeria (PDF)
- Australian Securities and Investments Commission (ASIC). Explanatory Statement, ASIC Corporations (Product Intervention Order—Contracts for Difference) Instrument 2020/986 (registered October 23, 2020). Federal Register of Legislation (PDF)