Market Insight: Understanding Regulatory Compliance in Financial Services
The European Securities and Markets Authority has published updated guidelines on leverage limits for retail CFD traders across the EU.
Updated ESMA Leverage Guidelines
ESMA has issued revised product intervention measures that maintain and strengthen leverage caps for retail CFD traders. The guidelines confirm the continuation of maximum leverage of 30:1 for major currency pairs and introduce new requirements for marketing materials.
Updated Leverage Limits
- Major currency pairs: 30:1
- Non-major currency pairs and gold: 20:1
- Major indices and non-gold commodities: 10:1
- Individual equities: 5:1
- Cryptocurrencies: 2:1
Marketing Restrictions
Brokers must now include standardized risk warnings in all marketing materials and trading platforms showing the percentage of retail accounts that lose money when trading CFDs.
Editorial Note
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