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ASIC\u2019s product intervention\u00a0<\/strong><\/p>\n What you need to know<\/span><\/b>\u00a0<\/span><\/p>\n ASIC made a recent announcement that will change the way we can offer our products and services to retail clients of our ASIC licensed entity.\u00a0<\/span>We\u2019ve<\/span>\u00a0put together a summary of the main reforms below to help you understand these changes and how they may affect you.<\/span>\u00a0<\/span>These<\/span>\u00a0changes are due to come into effect from 29 March 2021.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n Find out more about ASIC’s product intervention.<\/span>\u00a0<\/span><\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n Changes to leverage caps<\/span><\/b>\u00a0<\/span><\/p>\n A key focus of the change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or F<\/span>orex<\/span>.\u00a0<\/span>Here\u2019s<\/span>\u00a0how the proposed changes look:<\/span>\u00a0<\/span><\/p>\n 30:1 leverage on major currency pairs<\/span>\u00a0<\/span><\/p>\n 20:1 leverage on major indices,\u00a0<\/span>gold<\/span>\u00a0and minor currency pairs<\/span>\u00a0<\/span><\/p>\n 10:1 leverage on commodities (excluding gold) and minor indices<\/span>\u00a0<\/span><\/p>\n 2:1 leverage on cryptocurrency assets<\/span>\u00a0<\/span><\/p>\n 5:1 leverage on shares or other underlying assets<\/span>\u00a0<\/span><\/p>\n Compulsory margin close-outs<\/span>\u00a0<\/span><\/p>\n If the funds you hold in your account fall to less than 50% of the total initial margin required for\u00a0<\/span>all of<\/span>\u00a0your open trades, there is a requirement to close out your positions.<\/span>\u00a0<\/span><\/p>\n Prohibition on inducements<\/span><\/b>\u00a0<\/span><\/p>\n Certain inducements to retail clients are prohibited (for example, offering trading credits and rebates or \u2018free\u2019 gifts like iPads). Some circumstances like as volume-based discounts, educational tools, information services or research tools will still be allowed.<\/span>\u00a0<\/span><\/p>\n Negative balance protection<\/span><\/b>\u00a0<\/span><\/p>\n Protect against negative account balances by limiting a retail client\u2019s CFD losses to the funds in their CFD trading account.<\/span>\u00a0<\/span><\/p>\n Will I be affected?<\/span><\/b>\u00a0<\/span><\/p>\n The ASIC changes will impact retail clients only, not wholesale clients.<\/span>\u00a0<\/span><\/p>\n It’s<\/span>\u00a0important to note that you will lose some retail-only protections if you become<\/span>\u00a0an<\/span>\u00a0<\/span>IC Markets Pro account holder<\/span><\/a>, so you do need to consider this in your decision. If you are interested in finding out more about becoming a wholesale client or\u00a0<\/span>\u2018Pro Trader\u2019<\/span>, please visit our Pro T<\/span>rader<\/span>\u00a0page<\/a>.\u00a0<\/span>We\u2019ve<\/span>\u00a0included a summary below of the eligibility requirements but please refer to the Pro Trader<\/a><\/span>\u00a0page for full details.<\/span>\u00a0<\/span><\/p>\n As an IC Markets Pro\u00a0<\/span>client,<\/span>\u00a0you\u2019ll have access to higher leverage and exclusive account features.\u00a0<\/span>\u00a0<\/span><\/p>\n