Do not invest more money than you can afford to lose.
Alfa-Forex, a forex broker based in Cyprus, has decreased the minimum margin rate on forex pairs containing Swiss franc (CHF) to 1% from 2%, the broker said last week. This means that the maximum leverage on those instruments has been doubled to 100:1.
The trading conditions on other tradable instruments have not been changed. Leverage on forex ranges from 20:1 on select currency pairs traded with account balances of at least $200,000 to 100:1 on the majority of pairs traded via accounts of balances below $50,000.
Leverage is a type of virtual borrowing that traders can get from brokers. Its rate indicates the maximum amount they can borrow for each currency unit they deposit. For instance, if a broker trades with a deposit of $100 on a leverage of 100:1, they can execute orders for $10,000 instead of $100. The margin rate shows the minimum amount brokers are required to keep in their account balances when trading with leverage.
In addition to forex, the broker also offers trading in precious metals, Eurobonds, forwards, and contracts for difference (CFDs) on stock indices, stock indices futures, commodities, equities, and bonds.
Alfa-Forex is a brand of Cyprus-based Alfa Capital Holdings, which is part of Alfa-Bank Banking Group. The broker holds a license by the Cyprus Securities Exchange Commission (CySEC). Recently, Alfa-Bank set up another forex broker subsidiary under the brand Alfa-Forex, through which it has said it intents to apply for Russian forex broker license.
Alfa-Forex is focused on the markets of the EU, Russia and the Commonwealth of Independent States (CIS), or the former Soviet countries. It was one of the top five largest forex brokers in Russia in 2015 with an average monthly trading volume of $30.7 billion, according to a report by Interfax-Center for Economic Analysis (Interfax-CEA).
Source: Alfa-Forex
