ESMA Leverage Limits

ESMA (the European Securities and Markets Authority) introduced binding leverage caps for retail clients trading CFDs across the EU in 2018 — typically 30:1 on major currency pairs, 20:1 on non-major pairs and gold, 10:1 on commodities and indices, 5:1 on individual shares, and 2:1 on cryptocurrencies. The measures also mandated negative balance protection and standardized risk warnings. Brokers regulated in the EU/EEA must apply these caps to retail clients, though eligible clients who qualify as "professional" can sometimes access higher leverage in exchange for giving up certain retail protections.