What leverage can I use on gold CFDs in Australia?
Verdict
- As a retail client in Australia you can use up to 1:20 on gold CFDs, meaning 5% margin; that is the limit at Pepperstone, our pick, and Capital.com also lists 20:1.
- Professional (wholesale) clients at Pepperstone can use up to 1:500 on gold, but must pass a sophisticated-investor or wealth test and accept narrower negative balance protection.
- Gold gets more leverage than other metals, energy or softs (1:10 each) and less than major currency pairs (1:30) in Pepperstone's ASIC table.
- Offshore companies advertise far higher limits, but Pepperstone's own Bahamas entity says its products are not intended for residents of Australia.
The ceiling is the same at every ASIC-licensed provider because it comes from ASIC's product intervention order for retail CFDs. What differs is how brokers treat professional clients, and whether you should use the full amount at all.
1:20 at Pepperstone, the ASIC retail maximum
Pepperstone Group Limited (AFSL 414530) publishes 1:20 for gold in its Australian retail leverage table. Every A$1,000 of margin can therefore hold A$20,000 of gold exposure. The limit is set by the entity and the client category, not by the platform, so it is the same on MT4, MT5, cTrader, TradingView and Pepperstone's app. Retail clients also get negative balance protection: if a gap pushes your account below zero, Pepperstone restores it to zero.
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What 1:20 means in margin
At 1:20 a 5% move against you equals the whole margin on that position. At 1:500 it takes a 0.2% move, a range gold can cover in minutes.
| Position | Value | Retail margin at 1:20 | Pro margin at 1:500 |
|---|---|---|---|
| 1 oz (0.01 lot of 100 oz) | $3,000 | $150 | $6 |
| 10 oz (0.1 lot) | $30,000 | $1,500 | $60 |
| 100 oz (1 lot) | $300,000 | $15,000 | $600 |
Gold's place in Pepperstone's leverage table
- Major currency pairs: 1:30.
- Gold and major indices: 1:20.
- Other metals, energy and softs: 1:10.
- Shares and ETFs: 1:5.
- Bitcoin, Ether and other crypto: 1:2.
Qualifying for professional leverage
Pepperstone offers two routes to wholesale status in Australia. The sophisticated-investor route needs 20 or more leveraged FX or CFD trades per quarter over four quarters in the past two years, each at least AUD 50,000 notional, or a year or more in a professional trading role, plus a knowledge quiz. The wealth route needs net assets of AUD 2.5 million or gross income of AUD 250,000 a year for two years, certified by a qualified accountant. In return for up to 1:500 on gold you lose standard negative balance protection; Pepperstone instead offers pro clients a one-time cover of up to USD 100,000.
Why offshore leverage isn't a shortcut
Some groups route Australians to offshore companies offering 1:200 or more on gold. Pepperstone's own Bahamas terms say that company's products aren't intended for residents of Australia, and an offshore account would sit outside ASIC's retail protections. If 1:20 feels restrictive, the usual fix is a wider stop with a smaller position, not more leverage.
Sources
Leverage limits and professional criteria as published.
Is gold leverage different on cTrader and MT5?
No. The limit comes from Pepperstone's ASIC terms and your client category, so it is the same on every platform.
Can I use less than 1:20?
Yes. Your effective leverage is your total position value divided by your balance, so trading smaller positions keeps it well below the cap.
What margin does Capital.com require on gold in Australia?
It lists 20:1 for retail clients, the same 5% margin as Pepperstone.
Leverage magnifies losses as well as gains. Gold CFDs are complex instruments and carry a high risk of losing money quickly. Read the PDS and TMD and consider whether the product suits you. This is general information, not investment advice.