The latest major forex hub which allowed retail clients to use higher leverage, Australia, is about to cap leverage at 1:20, and ban binary options altogether. In an attempt to address “significant detriment to retail clients” resulting from trading in binary options and CFDs, the Australian Securities and Investments Commission (ASIC) proposed product intervention measures similar to those applied by the European Securities and Markets Authority (ESMA) last year. This became clear from a consultation paper which proposes a single leverage ratio limit of 1:20 for all forex pairs and gold. This is actually harsher than ESMA’s restrictions which allow the use of leverage of up to 1:30 for major currency pairs. As regards equity indices, ASIC suggests a maximum level of 1:15, commodities excluding gold 1:10, equities 1:5, and crypto-assets 1:2.
Ohhhhh Shite although they moved my account to a none Australian Account a few months back ( ICMarkets ) so maybe I'll be exempt. Index Trader here, getting 1:200 currently, so need 10x's in my account to trade the damn same When this hits I'll jump ship and move to Micro Emini's via NinjaTrader or something, don't think they allow DAX so NQ only thanks for the heads up
h...m ok on one hand it tries to reduce over leveraging by novices but on the other hand this means to trade the same exposure more deposit withe brokers and guess what with OTC industry ( Margin Fx, CFD etc) in AUS jurisdiction Client money protection is not as strict as say UK's so more money with brokers and if broker goes belly up you the trader become "Unsecured creditor" same as the contract cleaner or the landlord of the office of that brokerage company Try and asking this to AUs OTC brokers they will avoid the question or say things like " but your money is segregated" Yes they are supposed to be but history has shown that staff has committed fraud in the past and used the seg a/c to do illegal trading our theft ASIC a toothless watchdog!