On eToro UK, leverage varies depending on the asset being traded. For example, major currency pairs like GBPUSD offer leverage up to X30, while indices such as UK100 (FTSE100) have a maximum leverage of X20.
61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Using leverage in trading can significantly amplify returns, but it's crucial to remember that it also increases risks. As a UK citizen with an account under eToro (UK) Ltd., regulated by the Financial Conduct Authority (FCA), I've had firsthand experience with the varying leverage options available on different assets. It's essential to ensure your account is under the correct entity, as this determines the leverage conditions you're subject to.
In my exploration of the platform, I noticed that leverage levels vary depending on the asset. For instance, the maximum leverage I could apply to an eToro GBPUSD trade was X30, while for UK100 (FTSE100), it was capped at X20. Interestingly, real crypto trading on eToro doesn't permit the use of leverage.
Curious about these variations, I've looked into eToro's website for more information and discovered a table outlining the maximum leverage conditions for different assets.
| Asset | Maximum Leverage |
| Major currency pairs | X30 |
| Non-major currency pairs | X20 |
| Gold | X20 |
| Major indices | X20 |
| Commodities (except Gold) | X10 |
| Non-major equity indices | X10 |
| CFD stocks | X5 |
| ETFs | X5 |
To verify this information, I reached out to their customer service team through live chat. The representative confirmed that these leverage conditions were indeed applicable to accounts under eToro (UK) Ltd. They also emphasized that eToro leverage policies might differ under other entities, highlighting the importance of being registered under the correct entity, especially for UK residents.
eToro offers a range of leverage options for UK traders, tailored to different asset classes. Understanding these options is crucial for effective investment planning, keeping in mind the increased risks that come with higher leverage.
This insight into eToro UK's leverage policies for accounts under their supervision should help traders make informed decisions in their trading strategies. Remember, while leverage can boost potential gains, it can also magnify losses, so it's vital to use it judiciously.
About Mike Druttman
