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ASIC Regulatory Update

The Australian Securities and Investments Commission (ASIC) recently released changes to current regulations surrounding CFD products for retail clients.

You can read ASIC`s announcement here

What are the changes?

From 29 March 2021, ASIC’ s changes are:

Leverage Ratio Limits

30:1 for CFDs referencing an exchange rate for a major currency pair
20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
10:1  for CFDs referencing a commodity (other than gold) or a minor stock market index
2:1 for CFDs referencing crypto-assets
5:1 for CFDs referencing shares or other assets

Margin Close-out Percentages

Standardise CFD issuers’ margin close-out arrangements that act as a circuit breaker to close-out one or more a retail client’s CFD positions before all or most of the client’s investment is lost.

Negative Balance Protection

Protects against negative account balances by limiting a retail client’s CFD losses to the funds in their CFD trading account.

Promotional offers

Prohibits giving or offering certain inducements to retail clients (for example, offering trading credits and rebates or ‘free’ gifts like iPads).

Relevant Regulations

At FXTRADING.com, retail clients are under various regulatory and financial protections. According to the regulatory requirements of our licensing, clients are entitled to receive different protections based on where you choose to open your accounts.

Please note, the regulatory requirements below are for retail traders deciding to use our services. This information is not intended for distribution or use by any person in any country where that distribution or use would contravene local laws.