de | cn | ru

Market News

IG, XM, Plus500, ActivTrades, Admiral Markets lower leverage ahead of UK general election

Jun 06 2017
By
Jonathan Smith

As the date for the General Elections in the UK approaches, several major European forex brokers have announced they are taking precautionary measures against the expected high market volatility. To protect their clients, IG, XM, Plus500, ActivTrades, and Admiral Markets are lowering leverage levels on certain or all financial instruments.

 

Major UK forex broker and spread-betting provider IG said it will increase the minimum margin to 2% (1:50) for all GBP crosses, starting from 8pm (UK time) on Thursday, 8 June. Currently the broker offers leverage up to 1:100 for forex trading and states that trading conditions will be brought to normal shortly after the election results are announced.

 

Another leading European broker, XM, hiked the margin requirements to 1% (1:100) for all GBP currency pairs and to 2% (1:50) for all CFDs on Equity Indices, as of Thursday, 8th June 2017 (18:00 p.m. server time). The temporary change will affect both new and existing positions, and the broker says that margin requirements will revert to normal by Friday 9th June 2017.

 

Plus500 informs its clients it is doubling the margin requirements for all GBP and EUR forex pairs (to 1%) and for the following indices: Europe 50, UK 100, France 40, Germany 30 and Germany MidCap.The changes will come into effect as of Wednesday, June 7.

 

Another UK broker, Admiral Markets, said that it also will apply temporary changes on its trading conditions, starting from 23:00 (EET) on Thursday, 8 June 2017 until 12:00 (EET) on Friday, 9 June 2017.  The broker lowers the leverage levels for Forex and CFDs on gold, silver and oil to 1:200 (instead of 1:500). As regards cash index and bonds CFDs, the leverage will be up to 1:50. Additionally, the broker states that Close Only mode can be enabled for any instruments on separate short notice.

 

Starting from June 8, FCA-regulated forex and CFD broker ActivTrades double the margin requirements t0 0.5% for certain currency pairs, namely EURGBP, GBPUSD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD. It also plans to increase four-fold the margin requirements for the indices GER30, FRA40, UK100, ESP35, EURO50, GERTEC, ITA40, NETH25, SWI20. Starting from 10 p.m. CET on June 8, ActivTrades will.

 

The General Elections in the UK will take place on Thursday, 8 June, and as the outcome is uncertain, high market volatility is likely to occur. Public opinion polls keep showing contradictory results, so it’s hard to predict whether the Labor or the Conservative party will win the majority of the seats at Westminster. Traditionally the Tories are viewed as the most ‘Business-friendly’ party and best for the UK economy and financial markets.

 

In her own words, Theresa May called an early election because she doesn’t want the Parliament to stand in her way of Brexit negotiations. Needless to say, the outcome of the UK general election might affect the Brexit process and, In the long run, the global markets.

TAGS: UK elections  leverage  IG  XM 

Related forex news

Forex
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Market News

87 Chinese arrested in Indonesia for running a forex scam

Jan 27 2020 17:55:45

The police in Kuala Lumpur have arrested 87 Chinese national, working for a crime syndicate, which operated an online investment, forex and crypto currency scam. Read more

BTG loses $70,000 in double spends after a 51% attack

Jan 27 2020 15:14:52

  The Bitcoin Gold (BTG) network suffered a 51% attack last week, and lost over $70,000 in double spends. The matter raises questions regarding its security, since this is the second similar attack on the BTG blockchain. Read more

Austrian FMA warns against Estonian forex company Euro Wealth OÜ

Jan 24 2020 12:46:03

  The Austrian Financial Market Authority (FMA) has officially warned the public against doing business with Prestige.FM and Prestige Financial Markets – two forex brokerage brands operated by unregulated Estonian company Euro Wealth OÜ (previously AllProTech OÜ). Read more

Vodafone also leaves Libra

Jan 23 2020 17:34:17

The leading British telecom Vodafone is leaving Facebook's digital currency project, Libra.    Vodafone is the latest of a series of companies, which recently decided to withdraw from the project amid growing regulatory pressure from major central banks and many governments. Read more

SEC brings charges over fraudulent ICO that raised $600,000

Jan 22 2020 17:17:56

  The US Securities and Exchange Commission (SEC) has charged Sergii “Sergey” Grybniak and his company Opporty International, Inc. for conducting a fraudulent initial coin offering (ICO), which has scammed investors of $600,000 with unregistered digital asset securities. Read more

UK's FCA might ban credit card deposits with online forex and CFD brokers

Jan 20 2020 18:21:17

After earlier this month the UK Gambling Commission (UKGC) announced that after April 14th 2020 clients of gaming websites will no longer be able to use credit cards to fund their bets, some experts and analysts say it is high time that the UK's Financial Conduct Authority (FCA) do the same, as quit... Read more

The CNMV remains vigilant, blacklists Forbslab and eTrader247

Jan 20 2020 14:32:21

 Unregulated forex brokers Forbslab and eTrader247, along with several other alleged scammers, have been the latest additions to the warning list of Spanish financial watchdog – the Comision Nacional del Mercado de Valores (CNMV). Read more

Crypto scammer Patrick McDonnell sentenced to 33 months of imprisonment

Jan 17 2020 14:54:19

Patrick McDonnell, CEO of Coin Drop Markets, was sentenced to 33 months in federal prison and also ordered to pay $224,350 in restitution, after pleading guilty to cryptocurrency fraud last year. The Federal court in Brooklyn issued the sentence on Thursday. Read more

UK's FCA expects up to 10% decline of profits in the forex industry

Jan 16 2020 17:47:56

The Financial Conduct Authority (FCA) expects that the new regulations imposed on the retail forex and CFD brokers in the UK will lead to an overall reduction of their profits of between 6% and 10% - a decline which by the year 2021 may reach between 38.5 million GBP and 55.3 million GBP. Read more

UK’s FCA updates its warning list with A.B.Capitals and LincolnFX

Jan 16 2020 16:48:27

  Another bunch of brokers have made it to the warning list of UK’s Financial Conduct Authority since the beginning of 2020. We’ll focus on two of them - A.B. Read more

de | cn | ru