What leverage is available on gold?
Verdict
- A Singapore resident trading gold with Pepperstone, our top pick, can use up to 1:200 as a retail client, because the account sits with its Bahamas entity; under Pepperstone's UK, EU and Australian licences retail gold is capped at 1:20.
- 1:200 means 0.5% margin: a $20,000 gold position needs $100, against $1,000 at 1:20.
- Professional clients of the Bahamas entity get up to 1:500 on gold; its Pro page headline also says 'up to 1:1000', which contradicts its own table.
- The higher cap comes with lighter local protection: Pepperstone holds no MAS licence, and no compensation scheme is named for this entity.
How much leverage you get on gold depends less on the broker's brand than on which of its companies holds your account. Here is the gold cap at each Pepperstone entity, what those ratios mean in margin and risk, and the trade-off a Singapore resident accepts.
Gold leverage at Pepperstone for Singapore residents
Pepperstone is our pick for gold from Singapore. Its published XAU/USD averages are 0.12 on Razor and 0.19 on Standard, and its international company, Pepperstone Markets Limited (SCB, SIA-F217), allows retail clients up to 1:200 on gold. That is ten times the 1:20 Pepperstone's FCA, ASIC, BaFin and CySEC companies may give retail traders. The other side of it: the same company is licensed in the Bahamas, not by MAS, and names no investor compensation scheme. Under its terms, retail clients are not liable for a negative balance.
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Gold leverage caps across Pepperstone's companies
Same broker, very different limits. The column that applies to you is set by the company you contract with.
| Pepperstone company | Regulator | Retail gold | Pro gold |
|---|---|---|---|
| Pepperstone Markets Limited (serves Singapore) | SCB, Bahamas | 1:200 | 1:500 |
| Pepperstone Limited | FCA, UK | 1:20 | 1:500 |
| Pepperstone Group Limited | ASIC, Australia | 1:20 | 1:500 |
| Pepperstone GmbH / Pepperstone EU Limited | BaFin / CySEC | 1:20 | 1:500 |
What 1:200 means for margin and for losses
Margin is the position value divided by the leverage ratio. Leverage changes how much you must post, not how much a price move costs you.
- $20,000 of gold at 1:200: $100 of margin, or 0.5%.
- The same position at 1:20: $1,000 of margin, or 5%.
- A 1% fall in gold costs $200 on that $20,000 position at either ratio; at 1:200 that single move is twice the margin you posted.
- Pepperstone's international site says 80% of retail investor accounts lose money when trading CFDs with this provider.
Getting Pro leverage, and what you give up
The Bahamas entity lets you self-certify as a Professional client if you meet two of three tests: leveraged-trading experience, cash and portfolio worth more than USD 500,000, or professional experience in financial services. Pro gold leverage is 1:500 in the costs table. Pro clients lose the automatic negative-balance cover that retail clients have; instead Pepperstone offers a discretionary, one-time protection of up to USD 100,000.
Other brokers and gold leverage in Singapore
XS accepts Singapore residents and advertises up to 1:2000 with dynamic leverage on its global site, without naming the entity or a gold-specific cap, so ask which company and which tier you would be given. Capital.com does not accept Singapore residents. MAS-licensed providers such as IG, CMC Markets and OANDA operate under Singapore rules; we have not verified their gold caps for Singapore clients.
Sources
Leverage tables as each broker publishes them.
Is 1:200 gold leverage available to every Pepperstone client?
No, only to retail clients of the Bahamas entity, which serves Singapore. Pepperstone's UK, EU, German and Australian retail clients are capped at 1:20.
Does higher leverage make gold cheaper to trade?
No. Spread and commission stay the same; leverage only lowers the margin you post, and it magnifies gains and losses relative to that margin.
Does Pepperstone hold a MAS licence?
No. A search of the MAS Financial Institutions Directory returns no result for Pepperstone.
Leveraged CFDs are complex and can lose you money quickly; higher leverage makes those losses arrive faster. Pepperstone's international site reports that 80% of retail investor accounts lose money trading CFDs with this provider. This page is general information, not investment advice.