What are the FCA leverage limits for UK retail traders?

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.

Spread betting vs CFDs in the UK: what is the difference?

The main differences are tax and how losses are treated. UK spread betting profits are free of Capital Gains Tax (HMRC treats them as gambling), but spread-bet losses cannot be offset against tax. CFD profits are subject to Capital Gains Tax, yet CFD losses can be offset against other capital gains. Both are FCA-regulated, capped at 30:1 leverage on major FX pairs, with negative balance protection for retail clients.

Is spread betting tax-free in the UK?

For most UK retail traders, spread betting profits are free of Capital Gains Tax, Income Tax and Stamp Duty. HMRC manual BIM22015 confirms betting wins are not taxable as trading income, and CG56105 confirms no chargeable gains arise from spread bets. The trade-off is that losses are not tax-deductible, and HMRC can treat systematic spread betting that forms your main income as a taxable trade (BIM22020). This is general information, not tax advice.

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.