Offshore broker ForexBrokerInc joins the team of companies reducing leverage levels on certain currency pars and/or some indices during the UK referendum. In a note on its website on Wednesday the broker announced margin requirements for GBP pairs have been temporarily increased by four times in relation to the base account leverage since June 16th.
ForexBrokerInc have implemented this measure in order to protect their clients and the company itself from the anticipated market turbulence during the United Kingdom’s vote on EU Membership.
Four times increase of margin requirements for GBP pairs means that, if the base account leverage is 1:500 (the maximum leverage level offered by ForexBrokerInc), then leverage of 1:125 was applied on GBP pairs; if the base account leverage is 1:200, then leverage of 1:50 was applied, and so on.
The broker also warns that that availability of BID and ASK prices on all GBP pairs may differ during the trade on June 23, and June 24 following the results of the referendum, and that Stop Loss, Take Profit and Pending orders may be executed at different prices than desired due to potential abnormal trading conditions (including periods of limited liquidity).
Normal margin requirements on GBP pairs will probably will resumed on Monday, June 27, the broker adds.
In fact, most FX brokers have increased their margin requirements ahead of UK referendum on EU membership that takes place today, as a preventive measure against high market volatility. Here are some of the well-known brands from the long list: Forex.com, FxPro, RoboForex, HotForex, FxOpen, Orbex, ForexClub, FreshForex, Alfa-Forex, InstaForex, TeleTrade and Pepperstone, AxiTrader, FBS
Some brokers have even announced to suspend opening trades in select instruments during the vote.
Behind the brand ForexBrokerInc is brokerage company Gridley Enterprises SA., established in 2011, which is currently registered in the Marshall Islands. The broker offers trading in a wide range of products, such as forex, various CFDs, spot metals and energy products on both MetaTrader 4 platform and Sirix.