FP Markets informs Australian clients about new CFD regulations
Australia-based retail FX and CFDs broker FP Markets is reminding its Australian clients of the new rules concerning CFD trading.
Let’s note that the Australian Securities and Investments Commission (ASIC) will be making changes to the CFD trading conditions for retail traders. The regulatory changes will come into effect from March 29, 2021. The changes include conditions on the issue and distribution of CFDs.
The changes announced by ASIC include:
- Leverage ratio limits
The order will restrict the CFD leverage that service providers can offer to retail clients. The maximum ratio that will be allowed for CFD products are listed in the table below:
- Margin close-out percentages
Standardise CFD issuers’ margin close-out arrangements
- Negative balance protection
Limit a retail client’s CFD losses to the funds in their CFD trading account by protecting against negative account balances.
- Promotional offers
Inducements to retail clients. Service providers are prohibited from giving or offering any inducements. This includes trading credits, rebates or ‘free’ gifts such as electronic devices.
FP Markets is an Australian regulated global CFD and Forex provider with more than 16 years of industry experience. The company said its vision has always been to deliver the ultimate trading destination for clients by combining the best trading conditions, technology, product range, pricing and client services available to those wanting to trade the markets. FP Markets offers highly competitive interbank Forex spreads available from 0.0 pips and leverage up to 500:1 on FP Markets Pro Account.