CFD leverage limits: UK vs. Australia vs. Asia comparison

How CFD leverage limits differ between the UK, Australia, and Asia

Contracts for Difference (CFDs) offer traders the advantage of leverage, allowing them to amplify their positions with minimal capital. However, leverage limits vary significantly across regions due to regulatory differences. This article compares CFD leverage restrictions in the UK, Australia, and Asia, highlighting key brokers offering competitive leverage.

How CFD leverage limits differ between the UK, Australia, and Asia

How CFD leverage limits differ between the UK, Australia, and Asia

Contracts for Difference (CFDs) are popular trading instruments that allow traders to speculate on price movements without owning the underlying asset. One of the key attractions of CFD trading is leverage, which enables traders to control larger positions with a relatively small amount of capital. However, leverage limits vary significantly across different regions due to regulatory restrictions.

This article explores the differences in CFD leverage limits between the UK, Australia, and Asia, and highlights five top brokers offering competitive leverage.

 

CFD leverage limits in the UK

CFD leverage limits in the UK

The UK is regulated by the Financial Conduct Authority (FCA), which has imposed strict leverage limits to protect retail traders. These restrictions were introduced under ESMA (European Securities and Markets Authority) guidelines and include:

  • Major forex pairs: 1:30
  • Minor forex pairs, gold, major indices: 1:20
  • Commodities (excluding gold) and minor indices: 1:10
  • Cryptocurrencies: 1:2
  • Stocks and ETFs: 1:5

Professional clients exception: Traders classified as “professional clients” (based on experience, trading volume, and net worth) can access higher leverage (e.g., 1:200+), but most retail traders are restricted to the above limits.

Impact on traders:

  • Lower risk of margin calls
  • Reduced profit potential
  • More sustainable trading for beginners

 

CFD leverage limits in Australia

CFD leverage limits in Australia

Australia’s regulatory body, the Australian Securities and Investments Commission (ASIC), has historically allowed higher leverage than the UK. However, recent changes have tightened restrictions:

  • Major forex pairs: 1:30 (reduced from 1:500 previously)
  • Minor forex pairs and gold: 1:20
  • Commodities and indices: 1:20
  • Cryptocurrencies: 1:5
  • Stocks: 1:5

While still more flexible than the UK, ASIC has moved closer to European standards to enhance trader protection.

Professional traders in Australia: Like the UK, eligible professional traders can access higher leverage (e.g., 1:200 – 1:500) by meeting ASIC’s criteria.

Impact on traders:

  • More balanced risk than offshore brokers
  • Still higher leverage than the UK for some assets
  • Fewer sudden liquidations compared to 1:500+ leverage

 

CFD leverage limits in Asia

CFD leverage limits in Asia

Asia has a more diverse regulatory landscape, with some jurisdictions offering much higher leverage. Countries like Singapore (MAS-regulated), Japan (FSA-regulated), and offshore brokers in Cyprus (CySEC) or the Seychelles (FSA) have varying rules:

a) Strict regulators (similar to FCA/ASIC):

  • Japan (FSA): Max 1:10 for forex
  • Singapore (MAS): Max 1:20 – 1:30
  • Hong Kong (SFC): Max 1:20

b) Offshore brokers (high leverage):

Many traders in Asia use offshore brokers (regulated in Cyprus, Seychelles, or Vanuatu) for higher leverage:

  • Major forex pairs1:500 – 1:1000+
  • Indices and commodities1:200 – 1:500
  • Cryptocurrencies1:50 – 1:100

 

Top 5 Forex brokers with flexible leverage

For traders seeking flexible leverage, here are five top brokers:

Exness

  • Max leverage1:unlimited (for pros)
  • Regulation: CySEC, FSA (Seychelles)
  • Best for: Ultra-high leverage traders

96
Min. deposit
10$
Min. Spread
0.3
Bonus
Max. leverage
1:Unlimited
Used by
360000+
Trading platforms
Own Platform
Web Platform
MetaTrader 5
MetaTrader 4
Deposit methods
Bitcoin, Perfect Money, Credit/Debit Cards, Neteller, Wire, Skrill
Regulated by
FCA
FSCA of South Africa
FSA Seychelles
FSC Mauritius
CySEC
FSC of BVI
96
Min. deposit
10$
Max. leverage
1:Unlimited
Bonus
Used by
360000+
Min. Spread
0.3
Trading platforms
Own Platform
Web Platform
MetaTrader 5
MetaTrader 4
Deposit methods
Bitcoin, Perfect Money, Credit/Debit Cards, Neteller, Wire, Skrill
Regulated by
FCA
FSCA of South Africa
FSA Seychelles
FSC Mauritius
CySEC
FSC of BVI

 

XM Group

  • Max leverage1:1000 (on certain accounts)
  • Regulation: ASIC, CySEC, IFSC
  • Best for: Flexible account types

98
Min. deposit
5$
Min. Spread
0.6
Bonus
Max. leverage
1:1000
Used by
5000000+
Trading platforms
MetaTrader 5
MetaTrader 4
Web trader
Deposit methods
Bitcoin, Sofort, UnionPay, Neteller, Wire, Skrill
Regulated by
FCA
CySEC
IFSC
ASIC
98
Min. deposit
5$
Max. leverage
1:1000
Bonus
Used by
5000000+
Min. Spread
0.6
Trading platforms
MetaTrader 5
MetaTrader 4
Web trader
Deposit methods
Bitcoin, Sofort, UnionPay, Neteller, Wire, Skrill
Regulated by
FCA
CySEC
IFSC
ASIC

 

HF Markets (HFM)

  • Max leverage1:1000 (Pro accounts)
  • Regulation: CySEC, FSCA, FSA
  • Best for: MetaTrader users

96
Min. deposit
5$
Min. Spread
0.1
Bonus
Max. leverage
1:1000
Used by
3500000+
Trading platforms
Own Platform
MetaTrader 5
MetaTrader 4
Web trader
Deposit methods
-
Regulated by
FCA
DFSA
FSCA of South Africa
FSA UK
SVGFSA
96
Min. deposit
5$
Max. leverage
1:1000
Bonus
Used by
3500000+
Min. Spread
0.1
Trading platforms
Own Platform
MetaTrader 5
MetaTrader 4
Web trader
Deposit methods
-
Regulated by
FCA
DFSA
FSCA of South Africa
FSA UK
SVGFSA

 

AvaTrade

  • Max leverage1:400 (pro clients)
  • Regulation: ASIC, FSCA, CySEC
  • Best for: Diverse asset selection

97
Min. deposit
50$
Min. Spread
0.1
Bonus
Max. leverage
1:400
Used by
350000+
Trading platforms
Web Platform
ZuluTrade
MetaTrader 5
MetaTrader 4
Deposit methods
Bitcoin, Sofort, UnionPay, Credit/Debit Cards, Neteller, Wire, Skrill
Regulated by
ISA
ADGM
FFA of Japan
FSA of Japan
FSCA of South Africa
Central Bank of Ireland
CySEC
FSC of BVI
ASIC
97
Min. deposit
50$
Max. leverage
1:400
Bonus
Used by
350000+
Min. Spread
0.1
Trading platforms
Web Platform
ZuluTrade
MetaTrader 5
MetaTrader 4
Deposit methods
Bitcoin, Sofort, UnionPay, Credit/Debit Cards, Neteller, Wire, Skrill
Regulated by
ISA
ADGM
FFA of Japan
FSA of Japan
FSCA of South Africa
Central Bank of Ireland
CySEC
FSC of BVI
ASIC

 

BlackBull Markets

  • Max leverage1:500
  • Regulation: FMA (NZ), FSA (Seychelles)
  • Best for: ECN trading & tight spreads

98
Min. deposit
-
Min. Spread
0.0
Bonus
Max. leverage
1:500
Used by
-
Trading platforms
Own Platform
Web Platform
MetaTrader 5
MetaTrader 4
Deposit methods
Bank Transfer, FasaPay, Credit/Debit Cards, Neteller, Skrill
Regulated by
FMA
FSA Seychelles
98
Min. deposit
-
Max. leverage
1:500
Bonus
Used by
-
Min. Spread
0.0
Trading platforms
Own Platform
Web Platform
MetaTrader 5
MetaTrader 4
Deposit methods
Bank Transfer, FasaPay, Credit/Debit Cards, Neteller, Skrill
Regulated by
FMA
FSA Seychelles
Broker type
Forex

 

Final thoughts: which leverage is best for you?

  • UK/FCA brokers: Safest, but lowest leverage (1:30 max).
  • Australia/ASIC brokers: Moderate (1:30 – 1:500 for pros).
  • Asia/Offshore brokers: Highest leverage (1:1000+), but higher risk.

Choose based on your risk tolerance:
🔹 Beginners: Stick to FCA/ASIC brokers (1:30).
🔹 Experienced traders: Consider offshore brokers (1:500+).

 

 

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CFD leverage UK, Australia, and Asia - FAQ

In the UK, the FCA limits retail traders to 1:30 for major forex pairs, with stricter caps on cryptocurrencies (1:2) and stocks (1:5). Professional traders can access higher leverage. Learn more in the article.
While ASIC has tightened rules, major forex pairs still allow 1:30 leverage, and professional traders may access 1:500. Use our special buttons to sign up with reliable brokers and get the best deal.
Offshore brokers in Cyprus, Seychelles, or Vanuatu provide 1:1000+ leverage, while stricter regulators like Singapore (MAS) cap it at 1:30. Learn more in the article.
High-leverage brokers (e.g., 1:1000) carry higher risk, especially if unregulated. FCA/ASIC-regulated brokers offer better protection. Check our top broker recommendations.
Requirements vary by regulator but typically include trading experience, portfolio size, and income. Professional status grants higher leverage. Use our special buttons to sign up and get the best deal.