Important information regarding your Formax trading account.
Formax - What's now?
We regret to inform you that with effect from 12.00pm on 11th December 2018 Formax Prime Capital (UK) Ltd has decided to temporarily cease offering clients the ability to trade FX.
Accordingly, they will not be accepting any new clients until further notice. If you are already a client of Formax Prime you will receive client communications from them directly.
This article is originally referred from Formax Prime News.
Due to the new European Securities and Markets Authority (ESMA) regulation coming into effect on the 1st August 2018, if you have any open positions on your Formax Trading account on this date, you may need to reduce the size of your positions or increase the margin you have available in your account, due to the reduction in leverage that will be applied to your account.
How will the new ESMA regulations effect your retail trading account?
The new rules impose stricter regulations on the distribution and sale of CFDs, including rolling spot forex trading.
This new regulation will affect all retail investors across the EU and has been designed to increase the standards of conduct across the industry as well as protecting clients from considerable losses.
The new regulation includes:
- Restrictions on leverage for major currency pairs to 30:1 and 20:1 for non-major currency pairs
- A margin close-out rule will be applied at 50% of minimum required margin
- Negative balance protection on a per-account basis
For example if you trade major currency pairs, you will need to have almost 7 times the margin you do now to trade the same stake sizes:
|Extra margin required for retail clients|
|Major currency pairs||200:1||30:1||7x|
|Minor currency pairs||200:1||20:1||10x|
Original Source: Formax Prime News