CySEC Cuts Retail Leverage to 1:20 — What Changes for Forex Traders — 2026

CySEC is reducing maximum leverage on major forex pairs from 1:30 to 1:20 for retail clients, effective September 1, 2026. The move affects brokers regulated in Cyprus — including Exness, FXTM, and XM — and brings CySEC closer in line with ESMA’s original 2018 guidelines.

Who Is Affected

The new 1:20 cap applies to retail clients of CySEC-regulated brokers. Professional clients can retain higher leverage but must apply and qualify under strict criteria including portfolio size and trading experience.

Non-EU and offshore entities are not bound by CySEC rules. Some brokers may push affected clients toward their offshore entities — but traders moving there lose access to the Cyprus Investor Compensation Fund (ICF) which covers up to €20K.

How Brokers Are Responding

Major CySEC brokers have begun notifying clients. Some are pushing professional client applications more proactively than others. Traders who qualify for professional status may want to apply before September to avoid a gap in their trading activity.

This change doesn’t affect brokers regulated under FCA (UK) or ASIC (Australia), though ASIC already caps leverage at 1:30. For a full overview of leverage limits across regulators, read our guide to forex leverage.