Understanding Leverage: New ESMA Rules and Their Impact
Rankly Editorial
2026-05-10 ยท 6 min min read
The New Leverage Limits
ESMA has reduced the maximum leverage for retail traders to 1:30 for major forex pairs, 1:20 for non-major pairs, 1:10 for commodities, and 1:5 for stocks. Crypto CFDs are now banned for retail clients.
These changes apply to all EU-regulated brokers (CySEC, BaFin, etc.) serving clients. However, brokers with offshore licenses (FSA, FSC) can still offer higher leverage to international clients.
For Mongolian traders, this means you should check which entity your account is opened under. If you want higher leverage, request an account with the broker's FSA or FSC entity.
Impact on Mongolian Traders
Mongolian traders using EU-regulated brokers will face reduced leverage. If you currently trade with 1:500 leverage, you may need to reduce your position sizes or switch to an offshore entity.
The positive side is better negative balance protection and mandatory risk warnings. The FCA and CySEC now require brokers to provide detailed risk assessments before clients trade.
Consider your trading style. Scalpers and day traders are most affected by leverage reduction. Swing traders and position traders may not notice a significant difference.
