Which broker has the lowest margin requirements?
Verdict
- On paper, XS has the lowest margin requirement of the brokers we track that accept Singapore residents, advertising up to 1:2000 with dynamic leverage. Pepperstone remains our overall pick, at 1:200 on retail FX, gold and major indices, with retail negative-balance protection in its terms.
- At 1:200, a $100,000 FX position ties up about $500 of margin; at 1:2000 it would be about $50.
- Lower margin is not cheaper trading: it only lets a smaller deposit control a larger position, and losses scale with the position.
- Pepperstone's Singapore clients deal with its Bahamas entity (SCB SIA-F217); it holds no MAS licence.
Margin is the deposit a broker holds against an open position, and it is simply the inverse of leverage: 1:200 means 0.5%, 1:500 means 0.2%. If your only goal is the smallest possible margin, one broker in our data wins clearly. If you want a sensible margin regime plus low costs and clear protections, our answer is different.
Why we still recommend Pepperstone's margin terms
Pepperstone's international entity, which serves Singapore residents, publishes retail caps by asset class rather than one headline number, and pairs them with protection: under clauses 6.2 and 6.3 of its terms, retail clients are not liable for negative equity. Its Razor account adds a published EUR/USD average of 0.1 pips plus USD 3.50 commission per side. Experienced traders who qualify as professional can move to 1:500 on FX, gold and major indices, but give up automatic balance protection for a discretionary, one-time cover of up to USD 100,000.
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Margin needed per $100,000 of position
XS also publishes a margin call at 40% and a stop-out at 20% margin level. Its 'dynamic' leverage means the ratio can drop as positions grow, so check the tier that applies to your trade size.
| Broker and terms | Max leverage | Margin on $100,000 |
|---|---|---|
| XS (dynamic leverage) | Up to 1:2000 | About $50 |
| Pepperstone, professional (FX, gold, major indices) | 1:500 | About $200 |
| FP Markets (group-wide figure) | Up to 1:500 | About $200 |
| ActivTrades, Bahamas entity (FX) | 1:400 | About $250 |
| Pepperstone, retail (FX, gold, major indices) | 1:200 | About $500 |
Pepperstone's retail margin by asset
Requirements rise sharply outside FX. On the Bahamas entity's retail terms:
- FX, gold and major indices: 1:200, or 0.5% margin.
- Commodities other than gold: 1:50, or 2%.
- Shares and BTC/USD: 1:20, or 5%.
- Other metals: 1:10, or 10%.
What low margin really means for your account
Take a $1,000 balance. At 1:200 you could open up to $200,000 of EUR/USD, where a 0.5% move against you equals your whole balance. At 1:2000 the same deposit could control $2 million, and a 0.05% move would do the same damage. Most experienced traders size positions well below the cap and treat maximum leverage as a ceiling. Pepperstone's international site states that 80% of retail investor accounts lose money trading CFDs with it.
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Sources
Leverage caps as published by each broker.
Can Singapore residents get 1:500 at Pepperstone?
Only as professional clients. Pepperstone's international pro page lists 1:500 on FX, gold and major indices for those who self-certify against two of its three criteria.
Is Pepperstone's 1:1000 headline real?
Pepperstone's pro page headline mentions up to 1:1000 on gold and forex, but its own table and costs page say 1:500. We use 1:500.
Does XS hold a MAS licence?
None of the companies on XS's regulation page is licensed by MAS.
Trading CFDs on leverage carries a high risk of rapid losses, and you can lose your whole deposit. Pepperstone's international site says 80% of retail investor accounts lose money when trading CFDs with this provider. Nothing here is investment advice; check every fee and term with the broker before you trade.