Multi-regulated broker Pepperstone has announced it’s updating its margin requirements for clients using MT4 and MT5 accounts. The changes affect European clients only and do not apply to those using cTrader. The new rules will come into effect on June 5th, 2021.
New Margin Requirements
In line with an email sent to European clients, the broker’s retail traders will need to hold at least 50 percent of the hedged portions for any instruments. The change will affect all those onboarded with the broker’s FCA-licensed entity. It is not yet clear whether the new rules will apply to other entities under the Pepperstone umbrella. It’s also worth reiterating that clients using cTrader are not subject to the changes.
The move is designed to protect traders from accumulating large losses. Pepperstone is not alone when it comes to introducing new conditions amidst a particularly volatile year in the financial markets. Both regulators and trading operators are keen to ensure retail traders are managing risk appropriately.
Pepperstone is an Australian-based broker offering an extensive list of products, from forex and stocks to cryptos, precious metals and softs. Depending on the account, spreads from zero pips are available with competitive commissions.
Leveraged trading is available across markets with rates of up to 1:500 offered, depending on your location. But perhaps Pepperstone’s greatest strength is its multitude of trading tools with 11 desktop and mobile platforms for analysing the markets and executing positions.
For prospective traders, a free demo account with $50,000 in virtual funds can be opened from the broker’s homepage. Alternatively, clients can open a live account with minimum deposits starting from $200.
Pepperstone is one of the biggest names in the retail trading space with an extensive customer base in multiple jurisdictions. European traders will retain access to the broker’s MT4 and MT5 trading tools in the latest change but should take note of the updated margin conditions that come into effect on June 5th, 2021.