FreshForex, an offshore forex broker, said on Tuesday it has reduces by 10 times, or to 5%, the minimum margin requirement for contracts for difference (CFDs) on international shares. CFDs on shares of Amazon and Google require a minimum deposit of under $50, while those on shares of 19 other companies, including Apple and Facebook, are available with a margin of a minimum under $7.
“Before that, the minimum requirement for CFD on shares amounted to hundreds US dollars. Not every trader could afford to trade with the contracts he is really interested about,” the broker’s statement read.
Margin rates indicate the minimum amount of own funds clients need to have in their accounts when using leverage, a type of virtual borrowing that brokers provide. In most countries there are no legislative restrictions regarding how much leverage brokers can offer, but there are legislations where there is a cap on the maximum leverage allowed, mainly for retail trading.
FreshForex recommended that deposits for trading in share CFD should from at least $500.
FreshForex offers trading in forex, binary options, and CFDs on metals, energies, stocks and indices, in addition to providing analytical, educational, and training services. The broker is constantly introducing new trading conditions across its entire product portfolio. In the CFD segment, it recently reduced spreads by 30% for oil and gas instruments. In the meantime, it also expanded its offering with binary options under a new trading brand FreshOptions, and switched entirely to market execution mode.
FreshForex is a brand of Riston Capital, an investment company based in St. Vincent and the Grenadines. It is a member of Russia’s commission for the regulation of relations on financial market, KROUFR.