What leverage is available on share CFDs?
Verdict
- At Pepperstone, our top pick, Singapore residents can use up to 1:20 leverage on share CFDs, a 5% margin, because they are served by the Bahamas-licensed Pepperstone Markets Limited.
- That is four times the 1:5 retail limit Pepperstone applies under its UK, German and Australian licences, where 1:20 on shares is reserved for professional clients.
- The higher limit comes from the Securities Commission of The Bahamas (SIA-F217), not from Singapore rules; Pepperstone holds no MAS licence.
- Leverage lowers the deposit, not the risk: a 5% move against a 1:20 share position wipes out the whole margin.
Share CFD leverage depends less on the broker than on which of its licensed companies holds your account. For a Singapore resident at Pepperstone, that company is in the Bahamas, and the answer is 1:20.
Pepperstone's share CFD leverage for Singapore clients
Pepperstone's international site, where Singapore traders land, lists retail leverage of up to 1:20 on stocks. In margin terms, a S$20,000 position needs S$1,000 of your money. The same table allows 1:200 on major FX pairs, gold and major indices, 1:50 on commodities other than gold, 1:10 on other metals and 1:20 on BTC/USD. Share CFDs cover more than 1,100 underlying companies in the US, UK, Europe, Australia and Hong Kong. Retail clients of this entity are not liable for negative equity under its terms, so a gap cannot leave you owing money, but it can empty the account.
Affiliate link — we may earn a commission at no extra cost to you.
Same broker, different licence, different limit
Pepperstone publishes its share CFD leverage separately for each regulated company:
| Entity | Regulator | Retail | Professional |
|---|---|---|---|
| Pepperstone Markets Limited (serves Singapore) | SCB, The Bahamas | 1:20 | Not shown separately on the pro table |
| Pepperstone Limited | FCA, UK | 1:5 | 1:20 |
| Pepperstone GmbH | BaFin, Germany | 1:5 | 1:20 |
| Pepperstone Group Limited | ASIC, Australia | 1:5 | 1:20 |
What 1:20 means in dollars
Say you buy a US share CFD worth US$10,000.
- Margin needed: US$500 at 1:20, against US$2,000 at the 1:5 retail cap used in the UK and Australia.
- A 5% fall costs US$500: all of your margin at 1:20, a quarter of it at 1:5.
- Commission on US shares in Pepperstone's published schedules is US$0.02 per share each side, so 200 shares cost US$4 in and US$4 out.
- Overnight financing is charged on the full US$10,000, not on the US$500 you put up.
Other brokers Singapore traders look at
XS advertises up to 1:2000 with dynamic leverage on its Standard account, but the page names no entity and does not say what applies to shares, so ask XS before relying on it. Capital.com's Bahamas company also lists 20:1 on shares, but Capital.com does not accept Singapore residents in our data. The MAS-licensed firms (IG Asia, CMC Markets Singapore, Saxo, OANDA, Plus500SG) set their own share margins; our sources do not include their figures, so check the margin shown on each instrument.
Sources
Leverage tables as each broker publishes them.
Can a professional client get more than 1:20 on shares?
Don't assume so. Pepperstone's Bahamas pro page lists higher limits for FX, gold and indices but no separate share figure in our sources, and under its FCA, BaFin and ASIC licences professional share leverage is 1:20.
Why is share leverage only 1:5 in the UK and Australia?
Those regulators cap retail leverage on share CFDs at 1:5, and Pepperstone's UK, German and Australian companies publish that limit. Singapore residents fall under the Bahamas entity's table instead.
Does higher leverage cost more?
Not directly. Commission and financing are worked out on the full position size, so the cost is the same whatever margin you post; leverage only changes how much of your balance is tied up and how fast a loss eats it.
Trading share CFDs on margin carries a high risk of rapid losses, and leverage magnifies them. This is not investment advice. Leverage limits, fees and product lists change; confirm them with the broker before you trade.