IFC Markets maintains competitive trading conditions, including low fees and dynamic leverage. Understand the pros and cons of IFC Markets leverage conditions so you can make an informed decision for your portfolio, based on your trading requirements. I want to stress the importance of risk management and lot size management in leveraged trading, which is the main factor determining risk, not the leverage ratio.
Regulation and CFD Leverage Limits at IFC Markets
For each of the IFC Markets account types, the broker lists the maximum IFC Markets leverage, which applies to most assets.
Here are the regulation and Forex leverage maximums at IFC Markets:
1. Regulator: BVI FSC (British Virgin Islands Financial Services Commission)
- Compensation Scheme: No
- Maximum Forex Leverage: 1:1000
2. Regulator: LFSA (Labuan Financial Services Authority)
- Compensation Scheme: No
- Maximum Forex Leverage: 1:1000
3. Regulator: FSCA (Financial Sector Conduct Authority, South Africa)
- Compensation Scheme: No
- Maximum Forex Leverage: 1:1000
All retail traders receive the following:
- Segregated client deposits from corporate funds
- Negative balance protection
- Forced liquidation below the 10% margin level
How Leverage Works in CFD Trading
Traders get a capital injection with IFC Markets leverage, as it decreases the margin requirement to open and hold positions. For example, 1:400 leverage means that for each $1, traders can control a $400 position. Therefore, traders can achieve greater diversification with smaller portfolios or increase their earnings potential by borrowing capital from IFC Markets.
Please note that leverage also magnifies downside moves and requires traders to adjust their risk management accordingly. My IFC Markets broker review found that the broker charges swap rates on leveraged overnight positions, increasing final IFC Markets fees per trade.
IFC Markets Leverage by Asset Type
IFC Markets is a rare broker offering the maximum account leverage for most assets with few exceptions. Traders can use the IFC Markets demo account to explore IFC Markets leverage, as the trading platform lists the maximum leverage under contract specifications.
Asset | Maximum Leverage BVI FSC / LFSA/ FSCA |
Forex Majors | 1:400 |
Forex Minors | 1:400 |
Cryptocurrencies | 1:10 |
Majors indices and gold | 1:400 |
Minor indices | 1:100 |
Non-gold commodities | 1:400 |
Equities | 1:20 |
Please note:
- Exotic currency pairs get IFC Market leverage between 1:5 and 1:20
- Muslim traders using the IFC Markets Islamic account also qualify for IFC Markets leverage
Can You Set Leverage Manually at IFC Markets?
IFC Markets allows traders to set their leverage manually, but it cannot exceed the maximum IFC Markets leverage determined by the asset type.
How Do You Change Leverage at IFC Markets?
Traders can change the IFC Markets leverage from the secure IFC Markets Private Area.
Here is how to change your IFC Markets leverage:
- Navigate to “Live Accounts” in your IFC Markets Private Area.
- Choose the account for which you wish to modify the leverage.
- Click the drop-down menu in the “Leverage” column, and choose the desired leverage from 9 options, ranging from 1:1 to 1:400.
Please note:
- IFC Markets may request the closure of all open trades before changing the leverage ratio
IFC Markets Leverage – Pros and Cons
Traders should consider the pros and cons of IFC Markets’ leverage, as they will impact margin requirements and influence the IFC Markets withdrawal process.
The Pros of IFC Markets Leverage
- Negative balance protection
- 9 predefined leverage settings
- Automatic stop-out levels at the 10% margin level
- Low swap rates on leveraged overnight positions
- Maximum leverage applies to most assets
- Dynamic leverage that decreases as the portfolio increases
The Cons of IFC Markets Leverage
- None
Bottom Line
IFC Markets is a rare broker offering its maximum leverage of 1:400 for most assets with an automatic stop-out at the 10% account margin level. Negative balance protection ensures traders cannot lose more than their deposit. The margin is the capital requirement to open a position. It has an inverse relationship to leverage. At IFC Markets the margin depends on the leverage for the position. For example, a Forex trader opening a position with 1:400 leverage has a 0.25% margin requirement. Therefore, the trader only pays 0.25% of the trade size from their capital and borrows the remaining funds from IFC Markets. IFC Markets does not list a maximum lot size per transaction, but a portfolio can have a maximum total lot size of 10,000 lots. Select assets have lot size restrictions between 10 and 100 lots. The maximum IFC Markets leverage depends on the account type, asset, and portfolio size. IFC Markets decreases the leverage upper limit as the portfolio increases. with the maximum IFC Markets leverage ranging between 1:40 and 1:400.FAQs
What is the margin on IFC Markets?
What is the maximum lot size at IFC Markets?
How much leverage does IFC Markets give?
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.