Pepperstone, a multi-regulated forex and CFDs broker, is bringing major changes in its trading conditions, especially in the margin requirements. As per an email sent to its European clients, the brokerage retail traders will need to hold 50 percent of the hedged portions for any instruments.
However, the changes are only for the traders using MetaTrader 4 and MetaTrader 5 accounts and will come into effect from June 5.
“We’re changing the margin requirements for hedged positions on our MT4 and MT5 platforms,” the email stated. “As a retail customer, you will be required to post a margin of 50% on the hedged portion of any instrument.”
The broker was clear that traders using the cTrader trading platform will not face any such changes.
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“For cTrader, there will be no change to your current trading conditions, where total margin requirements are equal to the maximum margin requirements, for all positions of the relevant instrument symbol,” Pepperstone added.
Strengthening Its Global Operations
Headquartered in Melbourne, Australia, Pepperstone offers trading services with forex, stocks, commodities and a few other asset classes as well. Additionally, it is well-regulated, holding several regulatory licenses. In fact, it is one of the few brokers with regulated operations in Kenya.
After Brexit, the broker ensured the continuation of its European operations by gaining two licenses, one from the Cyprus Securities and Exchange Commission (CySEC) and the other from Germany’s BaFin.
Though Pepperstone is updating the margin requirement terms for the clients onboarded under the UK’s Financial Conduct Authority (FCA), it is not known if the broker is doing the same for clients under other entities too.