FXCM, Oanda, IG change margin requirements over Brexit outcome

FXCM, Oanda, IG change margin requirements over Brexit outcome

(AP Photo/Geert Vanden Wijngaert)

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FXCM, Oanda and IG Group have followed suit and also announced changes to their margin requirements on pound trades, for fear of increased market volatility in the eve of the upcoming EU referendum in the UK.

The US largest forex broker, FXCM (NYSE:FXCM), according to the Bloomberg wire service, said it will raise its margin requirements on pound and euro pairs, starting June 10, with more increases set for June 17.

Another leading forex broker in the US – Oanda – also announced it is taking measures on the expected increased market volatility and lowers maximum leverage on pound pairs to 20:1. The change comes into effect after the market close on June 17. The affected pairs will return to prior leverage levels after the markets close on June 24.

IG Group (LON:IGG), UK’s second-largest forex broker, also announced it is raising marings on the FTSE 100 index and all pound pairs on June 10, with more increases on June 17 and June 22.

Meanwhile, IG reported that the majority of its political binaries clients are betting that the Brexit supporters will prevail. This, in the broker’s words, is for the first time since it launched the EU Referendum Barometer earlier this year.

“The result on the IG EU Referendum Barometer is that IN has dropped below 70% for the first time in 44 days at 69%,” IG noted.

Only last week 81% of IG’s clients believed the UK will vote in favor of staying in the EU.

Earlier today FxPro warned its clients of the potential risks and mentioned eventual margin requirements hikes, while Saxo Bank outright announced an increase of between 5 and 7% on transactions in pounds, euros, francs, yen and gold and UK and European indices.

Another forex broker, the UK-regulated GMO-Z.com Trade UK, which is part of Japan’s GMO Click Holding also said it is temporarily raising the margin requirements on currency pairs containing the pound.

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