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Forex broker Gain Capital Japan, trading as Forex.com Japan, said on Monday it intends to double the margin requirements for corporate accounts to 1.0%. The new margin rate will be valid for customers with corporate accounts who use both trading platforms the broker offers – the MetaTrader 4 (MT4) and ForexTrader. This means that leverage rates for such clients will be halved to 100:1 from 200:1.
The changes will be implemented at the end of May 2016 and will apply for positions opened after the planned date. However, margin rates for positions that were opened prior to that will be automatically altered to reflect the new trading conditions.
In Japan, the maximum leverage rate forex brokers are allowed to offer to individual customers is 25:1. The country’s Financial Service Agency (FSA) reduced the maximum rate in August 2011 from 50:1. The stricter regulations aimed to protect investors from losses, resulting from unexpected movements in exchange rates.
For some currency pairs Forex.com Japan offers even lower leverage rates. For instance, the maximum allowed leverage for USD/RUB is 5:1.
Gain Capital Japan is part of US-based Gain Capital Holdings (NYSE: GCAP). It is a member of the Financial Futures Association of Japan (FFAJ).
Gain Capital serves retail and institutional clients under the trading brands Forex.com, City Index and GTX. It is active in North America, Europe and the Asia Pacific regions.
Source: Gain Capital Japan