What are the FCA leverage limits for UK retail traders?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.
Spread betting vs CFDs in the UK: what is the difference?
The main differences are tax and how losses are treated. UK spread betting profits are free of Capital Gains Tax (HMRC treats them as gambling), but spread-bet losses cannot be offset against tax. CFD profits are subject to Capital Gains Tax, yet CFD losses can be offset against other capital gains. Both are FCA-regulated, capped at 30:1 leverage on major FX pairs, with negative balance protection for retail clients.
Is spread betting tax-free in the UK?
For most UK retail traders, spread betting profits are free of Capital Gains Tax, Income Tax and Stamp Duty, because HMRC classifies spread bets as gambling wagers rather than investments (manual CG56105). The trade-off is that losses are not tax-deductible. Spread betting is a UK and Ireland product, offered only by FCA-regulated firms. This is general information, not tax advice.