News · Analysis
US Retail Gets Cheaper Single-Stock Leverage Than EU Allows
American retail traders are set to access leveraged single-stock exposure on a 15% margin floor, five percentage points lighter than the 20% required for equivalent contracts for difference in the EU and UK, according to an FM Intelligence comparison published by Finance Magnates on 20 September 2026. Three exchanges — Coinbase Derivatives, Bitnomial and North American Derivatives Exchange (trading as Crypto.com Derivatives North America) — filed with the SEC within two weeks of each other in September 2026 to list the never-expiring, cash-settled contracts. A pending CME Group legal challenge over whether the products should be classified as swaps could still raise the clearing requirement before any of them go live, per the same report.
A transatlantic gap in retail margin rules has opened around a new generation of single-stock derivatives, with US regulators permitting lighter leverage than their European counterparts require for economically similar products, according to an FM Intelligence analysis reported by Finance Magnates on 20 September 2026.
What happened
FM Intelligence's comparison of margin floors by wrapper puts the US requirement for single-stock contracts at 15% of a position's value, against 20% for a comparable contract for difference sold to a retail client in the EU or UK, Finance Magnates reported. Three exchanges filed with the Securities and Exchange Commission (SEC) to list the never-expiring, cash-settled contracts within a fortnight of one another: Coinbase Derivatives lodged Form 1-N on 1 September 2026, Bitnomial followed on 4 September, and North American Derivatives Exchange, which trades as Crypto.com Derivatives North America, filed on 14 September, according to the same report. The filings landed days apart from Kalshi's separate move to list 58 equity-linked contracts, Finance Magnates noted.
Why it matters
The products on both sides of the Atlantic are described by Finance Magnates as economically alike: cash settled, with no expiry, and financed through a periodic payment between counterparties — the same mechanics as a retail CFD. Yet the EU/UK version arrives bundled with leverage caps, mandatory margin close-out, negative balance protection, a standardised risk warning and a ban on trading incentives, none of which attaches to a US security future, according to the report. Finance Magnates traced the US floor to a rule set in December 2020 by the SEC and the Commodity Futures Trading Commission, meaning the gap is not a fresh policy choice but a longstanding divergence now being tested by a new product wave.
What it means for traders
For US retail clients, a lower margin floor means the same notional exposure to a single stock can be established with less capital than an EU or UK resident would need to post for the equivalent CFD position. That lighter margin, however, comes without the layered retail protections — automatic close-out, negative balance protection and standardised warnings — that European regulators have required of CFD providers since 2018. Traders comparing brokers across jurisdictions, including those weighing platforms recognised in our Best Trading App winners, should treat margin requirements and protections as separate variables rather than assuming lower margin equates to a materially different underlying product. World FX Awards' evaluation approach, including how it treats regulatory disclosures, is set out on our methodology page.
What to watch
The picture is not settled. Finance Magnates reported that CME Group has filed suit over whether these contracts should be classified as swaps, a determination that could raise the clearing requirement before any exchange lists its first contract. Traders and brokers alike will want to watch how that litigation resolves, whether the SEC filings from Coinbase Derivatives, Bitnomial and Crypto.com Derivatives North America clear review, and whether European regulators respond to a widening leverage gap with their own counterparts sold into the US.
FAQ
What is the margin difference between the US and EU/UK for single-stock contracts? According to FM Intelligence, cited by Finance Magnates on 20 September 2026, the US floor is 15% of a position's value against 20% required in the EU and UK for a comparable retail CFD.
Which exchanges have filed to list these contracts? Finance Magnates reported that Coinbase Derivatives filed with the SEC on 1 September 2026, Bitnomial on 4 September, and North American Derivatives Exchange (Crypto.com Derivatives North America) on 14 September 2026.
Could the margin requirement change before launch? Possibly. Finance Magnates noted a CME Group lawsuit disputing whether the contracts count as swaps, which could raise the clearing requirement before the first contract lists.