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Required Margins can be increased due to Regulatory Changes by ESMA
Regulatory Changes by ESMA can affect your trading conditions directly. Find out the details today, and become an Elective Professional Client with LCG and keep your existing margin rates.
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LCG is inviting traders to become an Elective Professional Client.
- Many traders are currently Retail Clients, however upcoming regulatory changes may result in restrictions for retail clients which will include increases to your margin rates.
- If you meet the requirements of the FCA, LCG will be able to class you as an Elective Professional Client.
- The benefit of being an Elective Professional Client with LCG will mean keeping your existing margin rates.
The recent European Securities and Markets Authority (ESMA) proposals may significantly affect your trading – and result in INCREASED margin rates.
The ESMA proposed margins are as follows:
- 30:1 leverage on major currency pairs = 3.33% margin
- 20:1 leverage on major indices = 5% margin
- 10:1 leverage on commodities = 10% margin
- 5:1 leverage on equities = 20% margin
LCG’s typical margins are as follows:
- 200:1 leverage on major currency pairs = 0.5% margin
- 200:1 leverage on major indices = 0.5% margin
- 50:1 leverage on commodities = 2% margin
- 20:1 leverage on equities = 5% margin
The following examples show how these changes will affect you:
| Market | Quantity | Current margin required | Margin required under ESMA Proposals |
|---|---|---|---|
| EUR/GBP | Spread Bet £10/point CFD (1 standard lot) | £445 | £2,904 |
| UK 100 | Spread Bet £10/point CFD (1 standard lot) | £363 | £3,625 |
| Brent Crude Oil | Spread Bet $10/point CFD (1 standard lot) | $670 | $6,700 |
| Apple | Spread Bet $1/point CFD (100 shares) | $810 | $3,240 |
By becoming an Elective Professional Client with LCG, you will KEEP your current margin rates.
Protections you will waive by becoming an Elective Professional Client with LCG include:
- You may not receive all of the disclosures required to be provided to you if you were classified as a Retail client.
- LCG will not be obliged to provide you with written risk warnings and notices.
- Only certain professional clients may take unresolved complaints against LCG to the Financial Ombudsman Service.
- LCG will not be obliged to comply with certain COBS rules.
For a full list of the changes to expect by becoming an Elective Professional Client, please visit the official website of LCG.
To learn more and apply to become an Elective Professional Client, please click the button below, read the information carefully and then consider whether you would like to upgrade your account with LCG.
