What leverage is available on share CFDs in the UK?
Verdict
- Retail traders in the UK get up to 1:5 on share CFDs, so you post 20% of the position as margin; Pepperstone, our top pick for UK share CFDs, publishes exactly that limit for Pepperstone Limited (FCA 684312).
- Capital.com's UK company lists the same 5:1 on shares, and CMC Markets quotes margin from 20% on shares and ETFs: no FCA-regulated broker in our data offers retail clients more.
- Clients accepted as Professional can get up to 1:20 on stocks and ETFs at Pepperstone, but they give up negative balance protection.
- Beyond margin, a Pepperstone share CFD costs 0.10% commission per side on UK shares or $0.02 per share on US shares, plus an overnight fee on positions held past 10 pm UK time.
The answer is the same at every FCA-regulated broker we checked: 1:5 for retail clients. What differs is how much a position costs to run once it is open, and whether you can qualify for more. Below: the margin maths in pounds, Pepperstone's limits by asset class, and where Capital.com and CMC Markets sit.
1:5 on shares, and why we would use Pepperstone for it
Pepperstone's UK costs page sets retail leverage on shares at 1:5, against 1:30 on major currency pairs. Because that ceiling is fixed for retail clients, the choice of broker comes down to cost and range. Pepperstone charges 0.10% per side on UK share CFDs (minimum £0.01) and $0.02 per share on US ones, covers more than 1,100 underlying shares across the US, UK, Europe, Australia and Hong Kong, and keeps selected US shares open 24 hours a day, five days a week. UK residents can also take the same exposure through a spread betting account, where Pepperstone charges no commission and says profits are exempt from capital gains tax, depending on your circumstances.
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What 1:5 means in pounds
Leverage of 1:5 is a 20% margin requirement. The margin is the deposit your broker holds while the trade is open; profit and loss are still worked out on the full position, which is why a modest move in the share hits the margin hard.
| Position value | Margin at 20% | Effect of a 10% move in the share |
|---|---|---|
| £2,500 | £500 | ± £250 |
| £10,000 | £2,000 | ± £1,000 (half the margin) |
| £25,000 | £5,000 | ± £2,500 |
Pepperstone's UK leverage by asset class
Shares carry the lowest retail leverage on Pepperstone's UK site. The right-hand column applies only if Pepperstone accepts you as a Professional client.
| Market | Retail | Professional |
|---|---|---|
| Major FX pairs | 1:30 | 1:500 |
| Major indices | 1:20 | 1:500 |
| Gold | 1:20 | 1:500 |
| Other commodities | 1:10 | 1:200 energies, 1:50 soft commodities |
| Shares (and ETFs on the Pro table) | 1:5 | 1:20 |
Capital.com and CMC Markets publish the same ceiling
Capital.com is our second choice in the UK. Its FCA-regulated company, Capital Com (UK) Limited (FCA 793714), lists retail leverage of 5:1 on shares, next to 30:1 on major FX and 20:1 on gold and major indices. CMC Markets UK plc publishes margin rates rather than ratios: from 20% on shares and ETFs, which is the same 1:5. Capital.com does offer guaranteed stop-losses, which Pepperstone does not, so if a guaranteed exit on a volatile single stock matters more to you than commission, that is the case for choosing it.
Can a UK trader get more than 1:5?
Only by being reclassified as a Professional client. Pepperstone asks you to meet two of these three tests, and spells out what you lose in return:
- An average of 10 significantly sized trades per quarter over the last year.
- A financial-instrument portfolio worth more than €500,000.
- At least one year working in the financial sector in a role that requires knowledge of derivatives.
- The trade-off: Pepperstone says negative balance protection will not apply to you as a Pro, so losses can exceed your deposit.
What a leveraged share position costs to hold
Leverage changes how much cash you tie up, not how charges are calculated: commission is worked out on the full position value. Two examples at Pepperstone's published rates:
- UK share CFD, £10,000 position: 0.10% is £10 to open and £10 to close, £20 in total.
- US share CFD, 200 shares: $0.02 × 200 is $4 each way, $8 in total.
- Keep either open past 10 pm UK time and an overnight fee is charged for each night held.
- Tax differs by wrapper: Pepperstone notes CFDs carry no stamp duty but profits are liable to CGT (losses can be offset), while spread bets carry neither.
Sources
Limits and charges as each broker publishes them.
Is the leverage different for US and UK share CFDs?
Not for Pepperstone's retail clients: its UK table gives one figure for shares, 1:5. What differs is the commission, 0.10% per side on UK shares against $0.02 per share on US shares.
Does a spread bet on a share give more leverage than a CFD?
Pepperstone publishes one retail leverage table for UK clients and does not list a higher figure for spread bets on shares. Plan on 1:5 either way, and check the margin the platform shows before you place the trade.
Can I lose more than my margin on a share CFD?
A single trade can lose more than the margin posted for it, but a Pepperstone retail account cannot stay below zero: Pepperstone says it returns a negative balance to zero as soon as possible. Professional clients do not get that protection.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Pepperstone states that 73.6% of retail investor accounts lose money when trading spread bets and CFDs with it. Only trade with money you can afford to lose. This page is not investment advice, and broker terms change, so confirm them on each broker's website.