The leverage that Forex.com offers depends on the entity and its regulator, which creates varying degrees of competitiveness. During my review, I evaluated the Forex.com leverage conditions across its eight entities. Learn how different rules and regulations impact your trading conditions and why I rank the Cayman Islands entity of Forex.com as the best choice for demanding traders. Traders can consider the pros and cons and my Forex.com leverage analysis to make the best decision for their leveraged portfolios.
Regulation and CFD Leverage Limits at Forex.com
The maximum Forex trading leverage listed for the various Forex.com account types applies only to Forex. Other asset classes have less leverage based on liquidity.
Here are the regulation and leverage limits at Forex.com:
Regulator | Compensation Scheme | Maximum Forex Leverage |
|---|---|---|
CIRO (Canadian Investment Regulatory Organization) | Yes | 1:30 |
CySEC (Cyprus Securities and Exchange Commission) | Yes | 1:30 |
NFA/CFTC (National Futures Association, Commodities Futures Trading Commission, US) | Yes | 1:50 |
CIMA (Cayman Islands Monetary Authority) | No | 1:400 |
FCA (Financial Conduct Authority, UK) | Yes | 1:30 |
FSA (Financial Services Agency, Japan) | Yes | 1:10 |
MAS (Monetary Authority of Singapore) | Yes | 1:20 |
| ASIC (Australian Securities and Investment Commission) | Yes | 1:30 |
All retail traders receive the following:
- Segregated client deposits from corporate funds
- Negative balance protection
- Automatic margin call at 50% account equity
- Forced liquidation below the margin close-out level
Forex.com Leverage by Asset Type
The leverage ratio depends on the Forex.com entity and asset type, and not all assets within an asset class qualify for maximum leverage. The trading platform lists the maximum leverage, and traders can explore leverage by asset with the Forex.com demo account. Please note that some countries, including the US and Canada, ban CFD trading.
Asset | Maximum Leverage US | Maximum Leverage CIRO | Maximum Leverage FCA | Maximum Leverage CySEC/ASIC | Maximum Leverage MAS | Maximum Leverage FSA | Maximum Leverage CIMA |
Forex Majors | 1:50 | 1:30 | 1:30 | 1:30 | 1:20 | 1:10 | 1:400 |
Forex Minors | 1:20 | 1:20 | 1:20 | 1:20 | 1:20 | 1:10 | 1:400 |
Cryptocurrencies | 1:2 | 1:2 | N/A | 1:2 | 1:2 | N/A | 1:20 |
Major indices and gold | 1:20 | 1:20 | 1:20 | 1:20 | 1:20 | 1:10 | 1:200 |
Minor indices | 1:10 | 1:10 | 1:10 | 1:10 | 1:10 | 1:10 | 1:100 |
Non-gold commodities | 1:10 | 1:10 | 1:10 | 1:10 | 1:10 | 1:10 | 1:100 |
Equities | 1:5 | 1:5 | 1:5 | 1:5 | 1:5 | 1:5 | 1:20 |
Please note:
- Select jurisdictions, including the FCA and CySEC, offer professional account upgrades with a maximum Forex leverage of 1:500 for qualifying traders
How Do You Change Leverage at Forex.com?
Forex.com has a Margin Change Request Form that traders must e-mail to customer support to change their account margin, which impacts leverage. Swap rates on leveraged overnight positions apply, resulting in higher Forex.com fees, which traders must consider.
Can You Set Leverage Manually at Forex.com?
While many Forex brokers allow traders to set their leverage manually, Forex.com does not. Traders, including those using the Forex.com Islamic account, must contact customer support for leverage changes.
Forex.com Leverage – Pros and Cons
As part of my Forex.com broker review, evaluating the broker’s benefits and drawbacks, I examined the pros and cons of Forex.com leverage. These impact margin requirements and influence the Forex.com withdrawal process.
The Pros of Forex.Com Leverage
- Negative balance protection
- Margin call at 50% account margin
- Automatic stop-out levels
- Reasonable swap rates
The Cons of Forex.Com Leverage
- The Forex.com entity determines Forex.com’s leverage
Bottom Line
The Forex.com entity and asset class determine the leverage ratio, which impacts the competitiveness of trading conditions. Traders will receive a margin call below 50% of account equity, followed by forced liquidations, if they fail to meet the margin call, but negative balance protection exists. The maximum lot size depends on the asset, with Forex traders limited to 50.0 standard lots, equal to 5,000,000 currency units. Forex.com offers maximum leverage of 1:400 from the Cayman Islands entity but maxes out at 1:50 in the US and 1:30 in Canada, the UK, the EU, and Australia. Singapore only grants 1:20, and Japan maxes out at 1:10.FAQs
What is the maximum lot size in Forex.com?
How much leverage does Forex.com give?