What is leverage in forex trading?
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.
What is a margin call in forex and how do I avoid one?
A margin call is a warning from your broker that your account equity has fallen below the required maintenance margin. If you do not add funds or close losing positions, the broker will begin closing positions automatically (stop out). To avoid margin calls, risk only 1-2% per trade and use a stop loss on every position.
What is the difference between a retail and professional forex account?
Retail accounts are subject to ESMA limits (30:1 leverage, negative balance protection, no bonuses). Professional (elective) accounts unlock up to 500:1 leverage but waive most ESMA protections. To qualify as Pro, you must meet 2 of: trade frequently, have EUR 500k+ portfolio, or have 1 year financial-sector experience.
Article: ESMA Leverage Rules 2026: What Changed and What It Means
ESMA leverage rules continue to evolve. We explain the current state of EU leverage limits, recent changes, the professional account workaround, and what proposed updates could mean for retail traders.
Free: EU Broker Regulatory Cheatsheet
4-page A4 reference — ESMA leverage caps, regulator strength ranking, and the 12-point pre-account checklist. Plus weekly broker updates.
No spam. Unsubscribe at any time. We respect your privacy.