why do bond cfds have lower leverage than forex cfds in the UK?

@arthur_wildberry - 9 months ago - Forex Education

I would like to think that government bonds are less volatile than forex pairs, so I often wonder why UK brokers offer a lower leverage of 1:5 on bonds while offering a higher leverage of up to 1:30 on forex.

@andy_colgate_nottinghill - 9 months ago

The FCA has since shifted position on this matter, they now allow up to 1:30 leverage on bond cfds. In the past, the FCA had tried to comply with ESMA regulations but on the matter of leverage on bond cfds, they disagreed with the ESMA and insisted on increasing leverage on bond cfds to 1:30 because they say it is lower risk than forex and ,ost traders use bond cfds for hedging and not for speculation.