How much default leverage does FXCM offer? When does this change?
Available leverage is determined by ESMA and not by FXCM.
FXCM offers different leverage for different tradeable instruments.
30:1 leverage restriction for major currency pairs
20:1 for non-major currency pairs, gold and major indices
10:1 for commodities other than gold and non-major equity indices
2:1 for cryptocurrencies
To view up to date Margin Requirement please click here.
Leverage is a function of the size of your trading position divided by the Margin Requirement.
Therefore the larger the margin requirement the smaller the leverage available.
The amount of leverage offered by FXCM differs depending on the instrument being traded and, for forex, the equity in your account.
Every individual trading instrument has its own leverage ratio that is determined by FXCM’s Risk Management team. This ratio is maintained via the increase or decrease of margin requirements on a monthly basis or after/prior to specific market events.
For CFD Trading, FXCM currently offers one leverage model. Irrespective of your account equity, the maximum leverage available on any particular CFD instrument is capped at 200:1.
For Forex Trading, FXCM offers two default leverage models.
For accounts with equity less than 50,000 CCY the maximum leverage available for any Forex pair is capped at 400:1.
For accounts with equity greater than 50,000 CCY the maximum leverage available for any Forex pair is capped at 100:1.
EQUITY & LEVERAGE TABLE
Below 50,000 CCY
50,000 CCY and above
Up to 400:1^
Up to 100:1
Up to 200:1
Up to 200:1
The exact leverage available for any instrument is at the sole discretion of FXCM, may be less than the allowed maximum, and is subject to change at any time.
*Equity is your account balance plus the floating profit/loss of your open positions.
^If your account equity is below 50,000 CCY and are trading FX on 200:1, you can request a leverage increase. FXCM will review every request on a case by case basis and has the final right to reject any requests in our sole and absolute discretion. Please contact our customer support team for more information.
When does my leverage change?
FXCM aims to only update Margins once a month, however margins may be updated at any time without limitation. Changes are instituted for the benefit of the account holder and FXCM in order to mitigate the risk present in volatile markets.
Additionally for clients that opened an account with less than 50,000 CCY. In the event your account equity increase above the 50,000 CCY threshold, either through trading activity or by depositing additional funds, your account leverage setting will change and the margin requirements for your forex positions will increase, effectively lowering the maximum leverage available.
The change generally takes place over the weekend and you will be notified via email of the upcoming account changes.