Swissquote Group (SIX Swiss Exchange:SQN), Switzerland-based online financial and trading services provider, has announced to its clients about improvements on margin rates and stop out levels for its Advanced Trader and MetaTrader platforms which will be effective from market open on November 23, 2014.
The broker whose shares are publicly listed on the Swiss Market Exchange, says they are striving to offer the best environment for traders and that the improved offering is an effort to merge the best available trading conditions offered between Swissquote’s Advanced Trader and MetaTrader platforms. Another likely explanation to the move could be to catch up to FXCM’s switch to a raw spreads pricing model in a number of markets.
As a result of the conditions merger, Swissquote’s clients can now access trading opportunities on both platforms with over 100 markets including forex, commodities and stock indices with reduced margin rates across 41 of the broker’s popular financial instruments. Swissquote also announced that there would be no weekend leverage change on its Advanced Trader platform.
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Margin is the amount of funds needed in order to make a trade, which is expressed as the percentage of the total value of the trade. With a lower requirement traders can maximize the use of their existing margin balances for opening further trading positions with lower stop out levels.
One example of the effect of Swissquote’s margin cut is that traders will now be able to open a position 100 times greater from their margin on the EUR/CHF compared to only 20 times larger before the change.
Despite the change, Swissquote’s margin requirements remain higher than many other regulated European brokers offering as low as 0.5% margin (200:1) on forex pairs.