IG Markets Leverage

The IG broker offers a maximum leverage of 1:400 for professionals and 1:30 for individuals. Leverage is a function that allows you to multiply your exposure on a financial market by mobilizing only a portion of the capital. IG Markets offers the possibility of trading with leverage on various financial products such as CFDs, turbo24 and barriers.

Leverage By Account Type

Traders registered on the IG Markets platform enjoy the right to choose effects of leverage trading depending on their trading account. The broker provides these clients with four types of accounts.

• The securities account for shares and ETFs by becoming a real owner of securities 
• The Turbo24 account for speculation on currency, commodity and stock index prices through innovative products called warrants and turbo 
• The CFD account for all financial products related to trading through a commission contract 
• The Option and Derivatives account offering the possibility of speculating through options such as barrier and vanilla

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

In addition to the type of accounts, the leverage effects of IG Markets also vary according to the regulations. To find out more about this broker, do not hesitate to consult our IG Markets review.

Different leverage effects by regulation and by market

The leverage effect offered by brokers is generally set according to the markets and regulations of the country. IG Markets leverage only takes into account the following financial products: stocks, Forex, stock indices, commodities and cryptocurrencies. If for some regulatory authorities the ceiling is 1:30, it happens that it reaches 1:400 under certain conditions.

Here is a complete description of the leverage effects offered at IG according to the type of market for the various regulatory authorities.

FCA—UK

La FCA (Financial Conduct Authority) is the financial regulatory institute of the United Kingdom. According to the terms of the FCA, the leverage effects offered by the IG broker for trading are:

• 1:30 for the various major currency pairs
• 1:20 for so-called non-major currency pairs
• 1:20 for gold
• 1:20 for the most important stock indices
• 1:10 for less influential stock indices
• 1:10 for the different raw materials except 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 restrictions on the financial market. The maximum leverage this trader is allowed to offer traders is 1:20. The leverage effect is distributed according to the financial products as follows:

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

FSCA—South Africa

Currency trading in South Africa is supervised by the local regulatory authority, the Financial Services Conduct Authority (fsca). The maximum IG leverage in this country is 1:200. However, this value differs according to the instruments:

• 1:200 for major currency pairs
• 1:20 for all secondary currency pairs
• 1:20 for gold raw material
• 1:20 for major stock indices only
• 1:10 for other stock indices
• 1:10 for the remaining raw materials
• 1:5 for stocks
• 1:2 for cryptocurrencies

MAS-Singapore

Le MAS (Monetary Authority of Singapore) puts in place regulations that must be followed by brokers in Singapore. Thus, the authorized leverage effect is 20:1, but this ceiling varies according to the financial instruments.

• 1:20 for all existing currencies
• 1:20 for gold in the commodities market
• 1:15 for stock index categories available on the platform
• 1:10 for commodities that differ from gold
• 1:5 for bonds and stocks
• 1:2 for cryptocurrencies

FINMA-Switzerland

The financial regulator of the IG broker in Switzerland is the Swiss Financial Market Supervisory Authority (FINMA). Depending on the impositions attributed to the leverage, the limit set is 1:30. The distribution is made as follows according to financial market products:

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

JFSA—Japan

Leverage regulations in Japan are set by the Japanese Financial Services Agency (JFSA). The imposed margin is 1:50, but it can go down depending on the financial product.

• 1:50 for the various major currency pairs
• 1:20 for so-called non-major currency pairs
• 1:20 for gold
• 1:20 for the most important stock indices
• 1:10 for secondary stock indices
• 1:10 for all commodities except gold
• 1:5 for remaining instruments such as stocks
• 1:2 for cryptocurrencies

DFSA – Dubai

In Dubai, the market is placed under the authority of the DFSA. With a cap of 1:400, the leverage varies depending on the status of the trader.

Individual trader

For this class of people, the distribution 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 except gold
• 1:5 for all stocks and bonds

professional trader

For clients of the professional rank, the limits are defined as such:

• 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

BaFin and Deutsche Bundesbank-Europe (except UK and Switzerland)

IG is licensed by the regulatory body of the Federal Financial Supervisory Authority (BundesanstaltfürFinanzdienstleistungsaufsicht or BaFin) in collaboration with Deutsche Bundesbank. These two institutes cover the majority of European countries apart from Switzerland and the United Kingdom. These regulators have limited leverage in relevant countries to 1:30. The distribution according to the financial products is made as follows:

• 1:30 for all the most recognized currency pairs
• 1:20 for different secondary currency pairs
• 1:20 for gold
• 1:20 for all major stock indices
• 1:10 for indices with a low impact rate
• 1:10 for commodities other than gold
• 1:5 for stocks
• 1:2 for cryptocurrencies

FMA—New Zealand

Regulation of the financial market in New Zealand is under the authority of the FMA. Leverage in this country allows for great earning potential. IG can offer its clients leverage of up to 1:400 and is distributed as follows:

• 1:400 for all the most profitable currency pairs
• 1:20 for different secondary currency pairs
• 1:20 for gold
• 1:20 for all major stock indices
• 1:10 for the remaining clues
• 1:10 for commodities except gold
• 1:5 for stocks
• 1:2 for cryptocurrencies

CFTC—USA

In the United States, the CFTC (Commodity Futures Trading Commission) is the regulatory body. According to the regulations the IG leverage margin is 1:50. Just like other regulations, there is a limit for each financial product.

• 1:50 for the various major currency pairs
• 1:20 for so-called non-major currency pairs
• 1:20 for gold
• 1:20 for the most important stock indices
• 1:10 for small stock indices
• 1:10 for all commodities other than gold
• 1:5 for the remaining financial products such as shares
• 1:2 for cryptocurrencies

Comparison of IG Leverage vs. Other Brokers

Discover in this comparative table the different leverage effects offered by IG Markets and other active brokers.

Leverage Risks

Although the leverage effect allows you to boost your earning potential by immobilizing part of your capital, it also presents risks. Improper manipulation of the lever can lead to enormous consequences both on the downside and on the upside. Since losses and gains are calculated based on the total amount of your position, there is a risk that you will lose more than your capital.

In the event that the investment is made on credit, it is therefore likely to end up with a debt. However, there are good skills to have to make the most of the opportunities.vantages of leverage while minimizing the risks of huge losses. Good money management is one of the resolutions to take into account. Generally, the broker does not recommend using the maximum leverage which is 1:400 due to the high risk.

How to Modify Leverage

Traders have the option to change IG leverage after registration is complete. The trader is able to request a decrease or increase in value. To do so, just follow these steps:

• Go to the Account section by clicking on "my account" or the secure area profile
• Then click on change leverage
• Make the change then save
• It should be emphasized that the modification is an instantaneous operation, it does not last

When Does Leverage Turn Into Massive Effect?

Trading with leverage has two purposes.

In the first case, the investments made are a real success. The trader then receives the money generated by his own capital and that generated by his borrowings. Under these conditions, there is a multiplication of the gains of the investor thanks to the leverage effect.

Leverage turns into a sledgehammer when the trader's own and borrowed funds are affected. The leverage effect therefore becomes negative for its user by multiplying the losses recorded by the investor.

How to Trade Without Leverage?

Non-leveraged investing is possible on the IG platform. This operation is directly linked to the amount wagered when taking a position. So, to trade without a leverage, it is usually sufficient to set the leverage to 1:1 by following the modification procedure described above.

How to Calculate Leverage?

Determination of leverage is a function of margin and margin percentage.

The margin corresponds to the payment of the amount necessary to have the right to use leveraged products for CFDs. Thus, the trader has the possibility of opening a position with part of the amount of his total exposure depending on the leverage effect. The amount required then represents the margin percentage.

Thus, to calculate the leverage effect, simply use this formula:

Leverage = 100/Margin Percentage or 1/Margin.

It should be noted that the margins are generally provided by the broker and vary according to the volume of the initial capital.

How To Use Leverage?

On IG, the leverage starts at the opening of the real account during the registration process. The leverage effect being directly linked to the amount of your capital and your area of ​​residence, the choice of a lever is made only after registration and the deposit of money. To change the leverage here, just:

• Go to the IG website
• Launch the procedure for opening a real account
• Fill out the form, making sure to include all the information;
• Requested (account information, personal data, address, marital status and bank details)
• Make the money deposit
• Access your new account on the platform
• Go to the account settings section
• Select “change leverage”
• Put the new leverage and validate

It should be noted that only a few financial products have leverage on this online broker. These include barrier and vanilla options, Turbo24 and CFDs in general. It is recommended to find out how these leveraged instruments work before getting started.

How to use leverage?

IG trading leverage is used to increase market exposures without having to increase capital. For a Forex IG leverage of 10, a trader with a capital of €5000 can invest up to €50. He is therefore able to open positions whose sum exceeds his own capital. The recommended limit for a trader is generally below 000:1, therefore the broker's leverage cap is 500:1. The IG Markets leverage in Europe is a maximum of 400, such as theFXCM leverage.

FAQ

❓What is the maximum leverage offered by IG Markets?

IG Markets is a broker that adapts to any type of trader. To do this, it offers several leverage effects corresponding to the needs of each client. However, it offers a maximum leverage of 1:30.

What is leverage calculation used for?

As in all activities in life, it is necessary to make calculations so as not to plunge headlong into a new affair. Calculating the leverage effect in trading amounts to limiting the risks. It allows you to choose the appropriate position according to your investment in order to maximize the chances of winning and avoid unnecessary losses.

How to move from one lever to another on IG Markets?

Although the broker assigns a default leverage at account opening, it is still possible to change the leverage. To do this, go to your personal space and click on "My account", then select "modify leverage" and save your operation. It is relatively short as it only takes a few minutes.

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