How do these new ASIC rulings affect your trading with IFGM?
On 23rd October 2020, ASIC released an announcement on several changes to how retail clients trade CFDs from the 29th March 2021.
The changes include leverage reductions, negative balance protection, margin close-out changes, and prohibitions on certain inducements. These changes will only affect retail clients. Wholesale clients are not affected.
There will be no immediate changes to your current trading account.
New margin rates from the 29th March 2021.
- Major currency pairs
- Minor currency pairs including Spot Gold
- Major stock market indices
- Minor indices
- Commodities (except Spot Gold)
- Shares or other underlying assets
Please note that any existing opened positions before the 29h March 2021 will not be affected.
Additional new rules for retail clients will come into effect on the 29th March 2021.
- Margin close-out.
If the funds you hold in your trading account fall to less than 50% of the total initial margin required for all your open trades, there is a requirement to close out your positions.
- Negative balance protection.
The total losses on your CFD positions will be limited to the funds in your trading account.
- Prohibition on inducements.
Certain benefits will be considered as inducements and will be prohibited. Examples will be the offering of trading credits and rebates or gifts such as iPads etc.
For more information about ASIC’s new rules, please refer to our website.