RECOMMENDED FOREX BROKERS
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While UK residents are splitting into ‘Stay’ and ‘Leave’ camps over the approaching EU referendum, most FX brokers change their trading conditions, temporarily increasing margin requirements for GBP instruments as a preventive measure against high market volatility. Among the brokers that temporarily increased margins are some famous brands, such as FxPro, RoboForex, HotForex, FxOpen, Orbex, ActivTrades, Dukascopy, FXCM, Oanda, IG Group, ForexClub, TeleTrade and Pepperstone. There is clearly a marked trend here, which is not surprising, as the Swiss Franc spike occurred only a year and a half ago.
Yet, there are some brokers going against that trend, keeping their trading conditions unchanged. easyMarkets and Exness, both holding CySEC licenses, decided not to go with the flow and demonstrated different approach to handling high volatility, as it increases both the risk of heavy losses and the chance of fabulous returns.
In a note to its clients easyMarkets (formerly known as Easy-Forex) says it is aware of the fact that increased volatility for GBP pairs over UK referendum is hazardous, but it also provides traders with a chance to earn lucrative profits. That is why it will not hike margin requirements on GBP crosses and other currency pairs, which is 0.25%. Furthermore, easyMarkets stated that it will continue to provide fixed spreads and guaranteed stop losses to its retail clients, which served well during the CHF events of January 2015, so hopefully they will also protect traders during the Brexit.
Earlier this month easyMarkets announced it is launching options trading on the movement of the British pound (GBP) amidst the deep market volatile resulting from the upcoming UK referendum.
Another broker to keep its margin requirements and trading conditions unchanged, as opposed to the majority of retail FX companies ahead of Brexit vote, is Exness. The company also passed notes to its clients, advising them to apply conservative trading strategies, as the British pound is expected to see increased volatility over approaching Brexit referendum in the UK. In spite of this, Exness said it will not lower leverage levels provided, which are one of the highest in the industry, reaching 1:2000.
Exness recently reported trading volumes for the first quarter of 2016 amounted to $587.8 billion, 5% higher than the previous one. It regularly publishes quarterly statistics based on Deloitte data.
Nobody asked UK residents whether they wanted to be in the EU, however on Thursday they will vote whether to stay in the union or leave it, causing heart-stopping volatility on forex markets. Pre-Brexit opinion polls keep pushing pound pairs up and down and most forex brokers undertake certain measures to manage their exposure to this event risks. However, there are brokers that keep their trading conditions unchanged: Exness and easyMarkets.
What is more, there are even some companies, that reduce their margins on GBP pairs ahead of UK vote, such as ThinkForex.