DMM FX Australia Goes against Higher Margin Requirements Trends
There has been an almost universal consensus across the industry that higher margin requirements are "the new normal" in the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business in a post-Swiss National Bank world.
One of the key players in the Asian retail markets has taken a different approach to its peers. The Australian subsidiary of the Japanese powerhouse DMM FX is going to provide higher Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term to its clients. The firm states that it is now providing leverage of 1:600, 1:500, 1:400, 1:300, 1:200, 1:100, 1:50, 1:25, 1:10,
1:5, 1:2, 1:1.
The move comes at a surprising time, since just this morning Forex Magnates reported about the Australian Securities and Investments Commission (ASIC) looking into tighter regulatory requirements.
While ASIC officials have so far been reluctant to make any commitments as to whether to introduce a cap on maximum leverage used by retail FX traders, the regulator has recently made it harder for companies seeking licensing to get regulated in the region.
According to the head of the financial regulatory watchdog in Australia, Greg Medcraft, ASIC has recently been limiting the licensing prospects for firms offering excessively high amounts of leverage.
Mr. Medcraft explained during a parliamentary hearing last Friday, that brokers primarily using Australia for a base of operations to target the Asia-Pacific market will be closely scrutinized.
The company is also aggressively looking to expand its footprint in the region by launching a no-deposit bonus campaign. The approach mimics a strategy adopted by another very successful broker in the region - Plus500 Ltd (LON:PLUS).
The London Stock Exchange listed company has been promoting a no-deposit campaign throughout the E.U. for a while, requiring only SMS confirmation from new clients. The strategy has been a big success for the broker in the region, with new client numbers performing consistently in the quarters after Plus500 added the offer.
There has been an almost universal consensus across the industry that higher margin requirements are "the new normal" in the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business in a post-Swiss National Bank world.
One of the key players in the Asian retail markets has taken a different approach to its peers. The Australian subsidiary of the Japanese powerhouse DMM FX is going to provide higher Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term to its clients. The firm states that it is now providing leverage of 1:600, 1:500, 1:400, 1:300, 1:200, 1:100, 1:50, 1:25, 1:10,
1:5, 1:2, 1:1.
The move comes at a surprising time, since just this morning Forex Magnates reported about the Australian Securities and Investments Commission (ASIC) looking into tighter regulatory requirements.
While ASIC officials have so far been reluctant to make any commitments as to whether to introduce a cap on maximum leverage used by retail FX traders, the regulator has recently made it harder for companies seeking licensing to get regulated in the region.
According to the head of the financial regulatory watchdog in Australia, Greg Medcraft, ASIC has recently been limiting the licensing prospects for firms offering excessively high amounts of leverage.
Mr. Medcraft explained during a parliamentary hearing last Friday, that brokers primarily using Australia for a base of operations to target the Asia-Pacific market will be closely scrutinized.
The company is also aggressively looking to expand its footprint in the region by launching a no-deposit bonus campaign. The approach mimics a strategy adopted by another very successful broker in the region - Plus500 Ltd (LON:PLUS).
The London Stock Exchange listed company has been promoting a no-deposit campaign throughout the E.U. for a while, requiring only SMS confirmation from new clients. The strategy has been a big success for the broker in the region, with new client numbers performing consistently in the quarters after Plus500 added the offer.