In the weeks leading up to Brexit, Finance Magnates published an easy-to-understand guide that listed the margin and leverage changes across the majority of key players in the trading industry.
The changes in trading conditions introduced by the listed brokers was a step taken to help ensure that clients were provided with better protection against the predicted volatility surrounding the forthcoming event.
Since the unexpected results of the Brexit vote were announced on 24th June, a growing list of brokers have continued to update their trading requirements which are as follows:
OctaFX: The company has reverted trading conditions to normal levels. This included margin requirements on all pairs containing the British pound (GBP) and the Euro (EUR), as from Tuesday 28th of June 2016 at 00:01, Server time (EEST).
FOREX.com: The company sent an account notice to customers to inform them that the standard minimum margin requirement on EUR/CHF will be changed from 5% to 0.5% before market open on Sunday, 3 July.
FXOptimax: The broker has reverted the margin requirements for EUR/USD, GBP/USD, EUR/JPY, GBP/JPY and USD/JPY to normal. Several pairs still have adjusted margin requirements. A full summary detailing the changes can be found on the company’s website.
AxiTrader: The company has decided to restore all trading conditions to ‘pre-Brexit’ levels across all products, effective Tuesday June 28th, 2016, 15:00 AEST.
Alpari: From 27June, the temporary margin requirements that were introduced will end. For pairs which contain the EUR or GBP, the margin will no longer be calculated with a leverage of the FX Special group. Leverage for all types of accounts will return to the standard conditions and the Limit and Stop levels will be stabilised at the values that were in place before 20th June, 2016. Trading conditions on alpari.binary type accounts will be returned to the standard conditions.
Pepperstone: Pepperstone will be increasing its maximum leverage on GBP and EUR instruments as follows: GBP pairs and UK100 – 100:1. EUR Pairs and EUR Indices – 200:1. These leverage changes will take place at the market close on the 27th June (00:00 server time). The company expects to have all products at its pre-Brexit margin levels by the end of market close on 1st July.
Vantage FX: The company has announced that due to the uncertain nature of the referendum outcome, the elevated margin requirements will remain in place as it awaits further liquidity to return to the market. June 30th update: margin returning back to normal at 1% for EUR pairs, XAU/USD, and USD/NOK and USD/SEK, as well as DAX30, FTSE100, DJ30, and SP500, and 2% margin for GBP and CHF pairs.
DMM FX: DMM FX has announced that trading has resumed back to normal hours on all its products (forex, CFD and indices).
FXTF: Leverage-related changes on GBP currency pairs announced on 23rd June will return to 12.5 times from the start of trading on 28th June.
IronFX: All trading limitations set prior to the UK referendum vote which were put in place to protect clients from abnormal market conditions, have now been lifted and margin requirements have returned back to normal levels. The company has stated that it will continue monitoring market volatility as it evolves post referendum.
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Blackwell: After reassessing the measures taken in response to the EU Referendum, Blackwell Global has revised the margins on a range of currency pairs listed on its website with effect from 28th June 9am GMT.
FXPRIMUS: FXPRIMUS has announced that it felt zero financial impact from the market volatility caused by the referendum results. While some currency pairs showed wider than average spreads due to periods of low liquidity, its technology, platform, and price feed remained intact allowing clients to conduct transactions as usual.
Hantec Markets: Hantec has changed back its maximum leverage levels to 25:1 (or 4% margin requirement) which was put in place at the beginning of last week. After Brexit, the broker further lowered leverage to 10x on Friday, requiring its clients to keep a minimum 10% margin in their accounts over this past weekend. The company has not stated when it will fully restore leverage levels to ‘normal trading’ conditions.
LiteForex: Amid pre-Brexit market uncertainty LiteForex introduced changes to the margin requirements on assets including GBP and EUR pairs. The eventual risks of gaps, lack in liquidity and sharp price fluctuations are estimated to be low, therefore the broker has today announced that it has brought margin requirements to normal and the clients can continue trading without increased risks.
Darwinex: Given the current market conditions, the company has decided to gradually lower the margin requirements to 2% on a range of GBP pairs with further changes on other currency pairs and European indices listed on its website. The broker expects to have all products at their pre-Brexit margin levels shortly.
ForexClub: ForexClub has announced that its standard trading terms and conditions have resumed and that clients can once again enjoy maximum leverage (multiplicator) of 1:500.
IC Markets : As the immediate risks from Brexit subsiding, IC Markets has decided to increase the maximum leverage on GBP pairs and UK100 to 1:100; EUR pairs and European Indices to 1:200. The company expects margins to return to their pre-Brexit levels by market close on Friday the 1st of July.
FXDD Global: The company plans to begin restoring the available leverage on customer accounts to their normal ‘pre-brexit levels’ after 11pm CET this Monday evening, except for metal-based CFDs where margin requirements will remain at their current levels for the time being.
Admiral Markets: The company has waived all prior restrictions on trading conditions within its clients’ accounts and has commenced business as usual. It also confirmed that there were no trading service emergencies; no negative impact on the company’s financials; and the negative balance protection policy covered those clients who did not correctly follow good risk management over this time.
XTB: In an update to its trading conditions, XTB said it was getting back to its previous margin table that was in effect before the brexit referendum. Accordingly, the firm said that as of June 28th, 2016, it removed the following currency pairs from some of the prior list of changes: EURGBP, GBPAUD, GBPCAD, GBPJPY, GBPNZD, GBPPLN, GBPUSD. In addition, the UK100, DE30, FRA40, EU50, ITA40 were also revised in terms of trading conditions and margin requirements, as markets have since settled down from last Friday.
BMFN: The company shared with Finance Magnates that margins for all its instruments have returned to pre-Brexit levels and expects the market liquidity to normalize in the coming days. The firm added that its systems functioned without any material adversity and that it was pleased with the risk management steps taken including the decision to raise margins heading into the vote.
eToro: After the company had made certain changes to its trading conditions ahead of last week’s EU referendum vote in the UK, on Monday eToro reverted margin levels back to normal for EUR and GBP related pairs and increased leverage, and noted that its operations had run smoothly through the Brext-related market volatility.
AAAFx: In an update to clients via email on June 30th, AAAFx said that it was gradually restoring trading-related changes that were put in place prior to the UK Referendum, and that leverage for Forex pairs was already back to 100:1. In addition, the email noted that margin % changes on CFDs including UK100, GER30, EUSTX50, FRA40, ESP35, which will be changed prior to the market open on Sunday July 2nd.
JFD Brokers: As of 4th July 2016, the initial margin requirements for the EUR and GBP currency pairs have been restored to previous levels of 1% with the EUR/USD being reduced even further to 0.5%.
Z.com: In a message to client today on its website, the company explained that the temporary adjustments that had been made to leverage ratios – due to the UK Referendum-related volatility last week – will be ending, with pre-change ratios restored from the opening of trading this Sunday July 3rd. Z.com mentioned in the update that leverage on EUR/USD and GBP/USD will revert to 200:1, and 100:1 for GBP/JPY and EUR/GBP pairs.