Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

Yup exactly and entirely agree with that. I think it's great there is the downside protection but that probably should have been in place already (black swan insurance should be covered by the industry). The leverage thing is going to be big if it really does come into effect as written. On a side note, does anyone notice the negative coverage of retail traders on CNBC etc because of Robinhood? Kramer seems to think that because retail traders make money buying stocks in a bull market, then it's a bad thing. There are already enough barriers to entry, these kind of restrictions just make the table smaller. It is a lot easier to lose money in the markets than to make it but is that a reason to restrict access? Regulators should focus on the access being fair (retail traders having fair spreads etc etc) not deciding on who can access the markets by imposing capital restrictions.

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

Nbats7979 wrote:
Sat Oct 24, 2020 4:51 pm
I have a feeling one of the brokers I use is migrating clients to its Singapore asia pacific desk. I'm not up on the regulation framework enough to know whether they will be able to offer higher leverage to clients based in Oz/NZ... I guess they think they can, otherwise why go to the trouble.
Singapore regulator MAS introduced a 5% margin requirement (1:20) last year and came into effect on 8th October 2019. Yes, with such leverage its hard, unless one has a proper system and a well-thought money management plan. IG, CMC, Oanda, CityIndix are on 5% for local residents. ... x-trading/

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

mlawson71 wrote:
Sat Oct 24, 2020 2:23 am
The Australian financial regulator, the Australian Securities and Investments Commission (ASIC), announced a set of new regulatory rules

Thanks again for breaking the news to us Mlawson.

IG Markets are already informing their Australian clients about the changes. From March 29, 2021 Australian Forex traders will require $3,333 minimum account balance for a 1 Lot trade.


What is the background to the new rules?

In August 2019, ASIC announced several proposals which, if adopted, would impact retail clients who trade CFDs.

On 23 October 2020, ASIC announced the final rules, which includes increases to the minimum margin requirements across all CFD markets. These changes will come into effect on 29 March 2021.

There are no immediate changes to your IG trading account.

The rules don't apply to traders who are classified as 'wholesale' and have qualified for Pro, that is, traders who fulfil specified wealth and experience criteria, and elect to be treated as 'wholesale'.

You can find out more about how ASIC’s rules will affect your CFD trading with us below.
Download over 500+ Forex & Trading books from Forex-Station's (member's only) Trader's Library.

Attachments 3
  1. Similar Topics

    1. 11 Replies
    2. Israel’s ISA plans to cap leverage at 1:100

      0 Replies 270 Views

      by mlawson71, Wed Nov 06, 2019 3:21 am in Broker Talk

      0 Replies

Return to “Forex Fundamentals & News”