The lineup of forex brokers that are planning to restrict trading on cryptocurrencies due to overexposure to its one-sided uptrend are growing bigger. Among the latest entries into this group of brokers is Polish FX brokerage XTB.
In a note to its clients, the listed firm said that it will temporarily withdraw its cryptocurrency CFD offering until further notice in an effort to protect clients from adverse market volatility.
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XTB will transfer trades on cryptocurrency CFDs to close only mode, effective today, 3pm GMT. On January 5, 2018, the open positions on these instruments will be closed at the company’s market close price whilst pending orders are deleted. This basically means that traders will not be allowed to open new trades with cryptocurrency.
Another broker that notified its clients that crypto pairs have been placed under trading limitations is IC Markets. The regulated brokerage today hiked margin requirements for crypto CFDs from 5% to 20%. The changes will be applied to both new and existing positions, and the broker has issued a message to its clients to check the impact of these changes on their respective trading accounts.
Sources with knowledge of the matter have recently shared with Finance Magnates that a number of brokers are materially reducing their exposure to cryptocurrencies.