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

CySEC is tightening the screws on retail leverage. The Cyprus regulator cut maximum leverage on major forex pairs from 1:30 to 1:20, effective September 1, 2026. If you trade with a CySEC-regulated broker — Exness, FXTM, XM, or similar — this affects you.

The official reason: investor protection. Behind it: a steady rise in retail trading volumes and loss ratios that regulators across Europe are watching closely.

Who’s Affected and Who Isn’t

This applies to retail clients of all CySEC-regulated brokers. If you’re classified as a professional client (meeting the higher net worth or trading volume thresholds), your leverage remains unchanged. But professional status isn’t automatic — you need to apply and qualify.

Non-EU brokers and offshore entities aren’t bound by CySEC rules. Some traders will shift accounts to maintain higher leverage. The trade-off: lower regulatory protection and no access to the Cyprus Investor Compensation Fund.

How Brokers Are Responding

Major CySEC brokers have started notifying clients. Most are offering professional client applications more actively than before. Some are also promoting their offshore entities — something traders should approach with caution.

If you’re affected, now’s the time to review your position sizing and check whether professional status makes sense for you.

See how leverage limits compare across regulators in our trading guides.