What are the ASIC leverage caps for retail CFD traders?

Key takeaways

Retail caps: FX majors 30:1, FX minors / major indices / gold 20:1, other commodities / minor indices 10:1, shares 5:1, crypto 2:1.
Margin close-out: positions are closed once equity falls to 50% of the required margin.
Negative balance protection: retail clients cannot lose more than the money in the account.
Check an AFSL on ASIC's Professional Register: Pepperstone 414530, Capital.com 513393.
Pepperstone holds retail client money in segregated accounts with tier-one banks.

How much margin does each ASIC cap require?

Margin is position value divided by leverage. The table uses an AUD 10,000 position in each asset class at the retail cap.

Margin for an AUD 10,000 position at ASIC retail caps
Asset class	Retail cap	Margin rate	Margin needed
Major FX pairs	30:1	3.33%	about AUD 333
Minor FX, major indices, gold	20:1	5%	AUD 500
Other commodities, minor indices	10:1	10%	AUD 1,000
Shares and ETFs	5:1	20%	AUD 2,000
Crypto	2:1	50%	AUD 5,000

How can you tell if an online broker is truly regulated?

Find the AFSL number on the broker's website and PDS, look it up on ASIC's Professional Register, and check that the licensee name and website match. Clone sites copy real names and numbers, so use the contact details in ASIC's record.

Which regulators offer the strongest investor protection?

For retail CFD clients, ASIC, the UK FCA and EU regulators under ESMA rules all impose leverage caps, close-out rules and negative balance protection. Offshore regulators often do not; that is why the entity on your agreement matters.

What protections matter most when choosing a broker?

Segregated client money, negative balance protection, a clear entity under a strong regulator, and published costs. Guaranteed stops matter if gaps worry you; Capital.com offers them, Pepperstone does not.

What red flags should traders avoid when choosing a broker?

Unsolicited calls, promised returns, pressure to deposit, requests to move money to a personal account, a licence number that does not match ASIC's register, and offers of leverage above ASIC caps to retail clients.

Which brokers are safest during market stress?

ASIC-licensed brokers give retail clients negative balance protection and the 50% close-out, which limit losses in a crash. Beyond that, guaranteed stops remove gap risk on individual trades.

is pepperstone safe

On checkable criteria, yes: ASIC licence 414530, segregated client money with tier-one banks, and ASIC retail protections. Safe does not mean low risk; most retail CFD accounts lose money.

What protections do ASIC-regulated brokers offer?

For retail clients: leverage caps, a 50% margin close-out, negative balance protection, standardised risk disclosure, a ban on inducements such as bonuses, client-money segregation and access to the Australian Financial Complaints Authority (AFCA).

Best ASIC regulated CFD brokers in Australia

Our order is Pepperstone, then Capital.com, with Fusion Markets the cheaper option on raw commission and IC Markets a similar raw-account alternative.

How do I check a broker holds an AFSL?

Search the AFSL number or company name on ASIC's Professional Register (via ASIC's website). Confirm the authorisations cover dealing in derivatives for retail clients.

Do Australian brokers offer negative balance protection?

ASIC-licensed CFD issuers must provide it to retail clients. Wholesale clients do not get it.

What is the margin close-out level for Australian retail clients?

50%: when your account equity falls to half of the margin required for open positions, the broker must start closing them.

Are client funds segregated at Australian CFD brokers?

Yes, client money must be held in segregated trust accounts. Pepperstone states retail client money is held separately from its own funds with tier-one banks.

Risk warning and disclosure

Leverage caps and close-outs limit how much you can lose, not whether you lose.

This page is general information, not personal advice. CFDs are leveraged; losses can mount quickly and most retail clients lose money. Read each provider's Product Disclosure Statement (PDS) and Target Market Determination (TMD). Spread figures are minimums or averages the providers publish and widen in fast markets.

Disclosure: eccrypto.com earns a commission when you open an account through some links. That does not change our cost arithmetic, explained in our methodology.