Regulation or leverage: which matters more when choosing a broker?
Posted: Mon Nov 02, 2026 11:02 pm
In the EU and UK, retail clients can't use more than 30:1 on the majors. Offshore brokers offer 500:1 or more, and some scalpers say they need it.
A quick check: how much leverage does your strategy actually use? A scalper risking 1% with a 5 pip stop on EURUSD with a €10,000 account trades 2 lots. That's about €200,000 notional, 20:1, within EU limits. Most scalpers using normal risk rarely need more than 30:1 on majors.
What regulation gives you:
A caveat: professional client status in the EU allows higher leverage but removes some protections. Read what you give up before applying.
Do you know your actual effective leverage?
A quick check: how much leverage does your strategy actually use? A scalper risking 1% with a 5 pip stop on EURUSD with a €10,000 account trades 2 lots. That's about €200,000 notional, 20:1, within EU limits. Most scalpers using normal risk rarely need more than 30:1 on majors.
What regulation gives you:
- Negative balance protection for retail clients.
- Segregated client funds.
- A compensation scheme, with limits that vary by country.
- A complaints route that doesn't depend on the broker's goodwill.
A caveat: professional client status in the EU allows higher leverage but removes some protections. Read what you give up before applying.
Do you know your actual effective leverage?