What leverage can UK retail clients get on CFDs?
Verdict
- UK retail clients can get up to 1:30 on major currency pairs, 1:20 on major indices and gold, 1:10 on other commodities and 1:5 on shares; these are the limits Pepperstone, our top UK pick, applies.
- Crypto CFDs are not available to UK retail clients at all, because the FCA banned crypto derivatives for retail consumers from January 2021.
- Capital.com's UK limits match: 30:1 on major FX, 20:1 on non-major FX, gold and major indices, 10:1 on other commodities and 5:1 on shares.
- Higher leverage, up to 1:500 on FX at Pepperstone, needs Professional status, which removes negative balance protection.
Leverage for UK retail CFD and spread betting clients is capped by asset class, so every FCA-regulated firm offers broadly the same maximums. What differs is how they treat you inside those limits. Pepperstone applies the standard caps, adds negative balance protection, and is our first choice for UK traders.
The limits at Pepperstone UK
Pepperstone Limited publishes these retail maximums on its UK costs page. They apply to spread bets and CFDs alike.
| Market | Pepperstone retail | Capital.com retail (UK) | Pepperstone Pro |
|---|---|---|---|
| Major FX pairs | 1:30 | 30:1 | 1:500 |
| Major indices | 1:20 | 20:1 | 1:500 |
| Gold | 1:20 | 20:1 | 1:500 |
| Commodities other than gold | 1:10 | 10:1 | 1:200 energies; 1:50 other metals and softs |
| Shares | 1:5 | 5:1 | 1:20 |
| Crypto | Not offered to retail | Not offered to retail | 1:10 (table) |
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What those ratios mean in pounds
Leverage sets the margin, the cash a position locks up. At 1:30, a £30,000 position in GBP/USD needs £1,000. At 1:20, a £10,000 index position needs £500. At 1:5, £5,000 of share exposure needs £1,000. The profit or loss still moves with the full position: a 1% move against a £30,000 trade costs £300, or 30% of the margin you put up.
- You can always use less leverage than the cap by trading smaller.
- If losses eat into margin, the broker closes positions; retail negative balance protection then stops the account going below zero.
- Pepperstone's own UK risk warning says 73.6% of retail accounts lose money with it on spread bets and CFDs.
Getting more leverage: the Professional route
Pepperstone UK will classify you as Professional if you meet two of three conditions: 10 significantly sized trades per quarter over the last year, a financial-instrument portfolio over €500,000, or at least a year in the financial sector with derivatives knowledge. Pro leverage reaches 1:500 on FX, gold and indices. Pepperstone's Pro page itself is inconsistent on crypto, quoting 1:10 in its table and up to 1:400 elsewhere. The trade-off is plain on that page: negative balance protection no longer applies, so you can lose more than your deposit.
Is the leverage the same for spread betting?
Yes. At Pepperstone the retail caps apply to the spread betting account as well as Standard and Razor CFDs. A £1-per-point spread bet on a major index uses the 1:20 rate, so margin is about 5% of the position's value.
Sources
Leverage tables published by Pepperstone and Capital.com, and the FCA's crypto derivatives rule.
Can a UK broker offer retail clients 1:500 leverage?
Not through an FCA-regulated UK retail account. If a firm offers you 1:500 as a UK retail client, check which company and regulator you are really dealing with.
Why can't UK retail clients trade crypto CFDs?
The FCA banned the sale of crypto derivatives to retail consumers from 6 January 2021. Pepperstone shows crypto to UK Professional clients only.
Do I lose anything by becoming a Professional client?
Yes. At Pepperstone, negative balance protection no longer applies, and retail leverage caps no longer protect you.
Leverage magnifies losses as much as gains. CFDs and spread bets are complex instruments with a high risk of losing money rapidly. This page explains published limits and is not investment advice.