Are forex brokers in Europe affected by ESMA leverage limits?

Yes, ESMA imposed leverage caps on retail forex/CFD clients since 2018: 1:30 for major pairs, 1:20 minors, 1:10 commodities, 1:2 crypto, with negative balance protection and standardized risk warnings. Professional clients can request higher leverage after proving experience. These rules apply to EU/EEA brokers and impact conditions uniformly. Some brokers classify clients as professional to bypass limits. Caps reduced retail losses but frustrated experienced traders. Post‑Brexit UK FCA maintains similar restrictions. Always confirm your client status and applicable limits during account setup.