IG Markets Leverage: Limits by Account and Regulator

IG offers maximum leverage of 1:400 for professional clients and 1:30 for retail clients. Leverage is a feature that lets you multiply your exposure to a financial market while committing only part of your capital. IG Markets lets you trade with leverage on a range of financial products, such as CFDs, Turbo24 and barrier options.

IG Markets Leverage by Account Type

Traders registered on the IG Markets platform can choose their trading leverage according to their trading account. The broker offers its clients four types of account.

• The share dealing account for stocks and ETFs, where you actually own the securities
• The Turbo24 account for speculating on currencies, commodities and stock indices through innovative products called warrants and turbos
• The CFD account for all financial products traded through a contract for difference
• The options and derivatives account, which lets you speculate through options such as barrier and vanilla options

Here is a table summarizing the leverage offered by the broker by account type and deposit amount.

As well as account type, IG Markets leverage also varies by regulator. To find out more about this broker, see our IG Markets review.

If this topic interests you, also see “Fortuneo Leverage” and “Interactive Brokers Leverage“.

IG Leverage by Regulator and Market

Brokers’ leverage is generally set according to the market and the country’s regulations. IG Markets leverage only covers the following financial products: stocks, forex, stock indices, commodities and cryptocurrencies. While some regulators cap leverage at 1:30, it can reach 1:400 under certain conditions.

Here is a full breakdown of the leverage offered at IG by market type for each regulator.

FCA — UK

The FCA (Financial Conduct Authority) is the UK’s financial regulator. Under FCA rules, the leverage offered by IG for trading is:

• 1:30 for major currency pairs
• 1:20 for non-major currency pairs
• 1:20 for gold
• 1:20 for major stock indices
• 1:10 for less influential stock indices
• 1:10 for commodities other than gold
• 1:5 for securities such as stocks
• 1:2 for cryptocurrencies

ASIC – Australia

For brokers operating in Australia, ASIC is the authority responsible for financial market restrictions. The maximum leverage the broker may offer traders is 1:20, broken down by financial product as follows:

• 1:20 for all currency pairs (major and non-major)
• 1:20 for gold
• 1:15 for stock indices
• 1:10 for commodities other than gold
• 1:5 for other financial products, including stocks
• 1:2 for cryptocurrencies

FSCA — South Africa

Currency trading in South Africa is supervised by the local regulator, the Financial Sector Conduct Authority (FSCA). IG’s maximum leverage in this country is 1:200, although it varies by instrument:

• 1:200 for major currency pairs
• 1:20 for all minor currency pairs
• 1:20 for gold
• 1:20 for major stock indices only
• 1:10 for other stock indices
• 1:10 for the remaining commodities
• 1:5 for stocks
• 1:2 for cryptocurrencies

MAS – Singapore

The MAS (Monetary Authority of Singapore) sets the regulations brokers in Singapore must follow. The permitted leverage is 20:1, but this cap varies by financial instrument.

• 1:20 for all currencies
• 1:20 for gold on the commodities market
• 1:15 for the stock index categories available on the platform
• 1:10 for commodities other than gold
• 1:5 for bonds and stocks
• 1:2 for cryptocurrencies

FINMA – Switzerland

IG’s financial regulator in Switzerland is the Swiss Financial Market Supervisory Authority (FINMA). Under its leverage rules, the cap is 1:30, broken down by financial product as follows:

• 1:30 for major currencies
• 1:20 for non-major currencies
• 1:20 for gold
• 1:20 for major indices
• 1:10 for secondary indices
• 1:10 for commodities other than gold
• 1:5 for all stocks
• 1:2 for cryptocurrencies

JFSA — Japan

Leverage rules in Japan are set by the Japan Financial Services Agency (JFSA). The cap is 1:50, but it can be lower depending on the financial product.

• 1:50 for major currency pairs
• 1:20 for non-major currency pairs
• 1:20 for gold
• 1:20 for major stock indices
• 1:10 for secondary stock indices
• 1:10 for all commodities other than gold
• 1:5 for remaining instruments such as stocks
• 1:2 for cryptocurrencies

DFSA – Dubai

In Dubai, the market is regulated by the DFSA. With a cap of 1:400, leverage depends on the trader’s status.

Retail Traders

For this category of clients, the breakdown is as follows:

• 1:50 for major currencies
• 1:20 for other currencies
• 1:20 for gold
• 1:20 for major stock market indices
• 1:20 for commodities other than gold
• 1:5 for all stocks and bonds

Professional Traders

For professional clients, the limits are set as follows:

• 1:400 for all major currency pairs
• 1:100 for gold
• 1:10 for major stock indices
• 1:10 for commodities other than gold
• 1:5 for other instruments such as stocks and bonds

Diversifiez votre patrimoineInvestissez dans l’artDes tableaux originaux, pièces uniques signées par l’artiste. Un actif tangible, loin des écrans et des cotations.Voir les tableaux →

BaFin and Deutsche Bundesbank – Europe (Excluding the UK and Switzerland)

IG is authorized by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin) in cooperation with the Deutsche Bundesbank. These two bodies cover most European countries apart from Switzerland and the UK. These regulators have capped leverage in the countries concerned at 1:30, broken down by financial product as follows:

• 1:30 for the most widely traded currency pairs
• 1:20 for minor currency pairs
• 1:20 for gold
• 1:20 for all major stock indices
• 1:10 for lower-impact indices
• 1:10 for commodities other than gold
• 1:5 for stocks
• 1:2 for cryptocurrencies

FMA — New Zealand

Financial market regulation in New Zealand falls under the authority of the FMA. Leverage in this country offers high profit potential: IG can offer its clients leverage of up to 1:400, broken down as follows:

• 1:400 for all the most profitable currency pairs
• 1:20 for minor currency pairs
• 1:20 for gold
• 1:20 for all major stock indices
• 1:10 for the remaining indices
• 1:10 for commodities other than gold
• 1:5 for stocks
• 1:2 for cryptocurrencies

CFTC — USA

In the United States, the CFTC (Commodity Futures Trading Commission) is the regulator. Under its rules, IG’s leverage cap is 1:50. As with other regulators, there is a limit for each financial product.

• 1:50 for major currency pairs
• 1:20 for non-major currency pairs
• 1:20 for gold
• 1:20 for major stock indices
• 1:10 for smaller stock indices
• 1:10 for all commodities other than gold
• 1:5 for remaining financial products such as stocks
• 1:2 for cryptocurrencies

IG Leverage Compared With Other Brokers

This comparison table shows the leverage offered by IG Markets and by other active brokers.

	Broker	Maximum Leverage Offered
	IG Markets	This broker offers maximum leverage of 1:30
	Vantage FX	The maximum leverage offered by this broker is 1:500
	Axi	You get maximum leverage of 1:400 at AxiTrader
	Admiral Markets	The highest leverage at Admiral Markets is 1:30
	Libertex	This broker offers leverage of 1:30
	FXPrimus	Leverage at this broker can go up to 1:500.

The Risks of Leverage

Although leverage lets you boost your profit potential while committing only part of your capital, it also carries risks. Mishandling leverage can have huge consequences, both on the downside and the upside. Because profits and losses are calculated on the total size of your position, you risk losing more than your capital.

If the investment is made on credit, you could end up in debt. However, there are good habits to adopt to get the most out of leverage while minimizing the risk of huge losses. Sound money management is one of them. In general, the broker does not recommend using its maximum leverage of 1:400 because of the high risk.

How to Change Your Leverage

Traders can change their IG leverage once registration is complete, asking for it to be lowered or raised. To do so, simply follow these steps:

• Go to the Account section by clicking “My account” or your secure area profile
• Then click Change leverage
• Make the change, then save
• Note that the change is instant and takes no time

When Does Leverage Turn Into a Sledgehammer?

Trading with leverage has two possible outcomes.

In the first case, the investments are a real success. The trader then collects the money generated by their own capital and by the borrowed funds. Under these conditions, leverage multiplies the investor’s gains.

Leverage turns into a sledgehammer when both the trader’s own funds and the borrowed funds are hit. Leverage then works against its user by multiplying the investor’s losses.

How to Trade Without Leverage

You can invest without leverage on the IG platform. This depends directly on the amount committed when opening a position. To trade without leverage, you generally just need to set your leverage to 1:1 by following the change procedure described above.

How to Calculate Leverage

Leverage is determined by the margin and the margin percentage.

Margin is the amount you must deposit to be able to use leveraged CFD products. The trader can thus open a position with only part of their total exposure, depending on the leverage. The amount required is the margin percentage.

To calculate leverage, simply use this formula:

Leverage = 100 / Margin percentage, or 1 / Margin.

Note that margins are generally set by the broker and vary according to the size of the initial capital.

How to Set Your Leverage

At IG, leverage is set when you open a live account, during the registration process. As leverage is directly linked to the amount of your capital and where you live, you can only choose a leverage level after registering and depositing funds. To change the leverage here, simply:

• Go to the IG website
• Start the live account opening process
• Fill in the form, making sure you enter all the information
• Requested (account information, personal details, address, marital status and bank details)
• Make your deposit
• Access your new account on the platform
• Go to the account settings section
• Select “Change leverage”
• Enter the new leverage and confirm

Note that only some financial products carry leverage at this online broker, including barrier and vanilla options, Turbo24 and CFDs in general. It is advisable to learn how these leveraged instruments work before getting started.

How to Use Leverage

IG trading leverage is used to increase your market exposure without having to increase your capital. With IG forex leverage of 10, a trader with €5,000 in capital can invest up to €50,000. They can therefore open positions worth more than their own capital. The recommended limit for a trader is generally below 1:500, which is why the broker’s leverage cap is 1:400. IG Markets leverage in Europe is capped at 30, the same as FXCM leverage.

FAQ

Have you already used leverage in your trading? Share your experience with the community in the comments!