RECOMMENDED FOREX BROKERS
Do not invest more money than you can afford to lose.
CapitalIndex, a UK-based forex broker, announced it is hiking its margin requirements ahead of the US presidential election on November 8.
As of 2 PM (UK time) on Thursday, November 3, the broker raises the margin requirements to 2% on all instruments, except the following:
US Coffee 3%
Natural Gas 3%
On Monday, November 7, one day before the elections, CapitalIndex will implement another increase and the margin requirements will be 4% on all products, except the index China50, which retains the 5% requirement.
“If you have open positions during this time, please be aware that margin requirements to keep those positions open will rise,” the company said on its website. “We recommend that you monitor your positions carefully and maintain a sufficient account surplus throughout this period, particularly over weekends and before major announcements.”
CapitalIndex is a broker that offers trading in forex and CFDs, as well as spread betting and spread trading. It is regulated by UK’s FCA, the Cyprus Securities and Exchange Commission and South Africa’s Financial Services Board.
Meanwhile, another forex broker – FXOpen – warned on its website that it might raise margin requirements up to 5 times their normal level, starting from November 3, without prior notice. The changes will apply to all financial instruments offered by FXOpen, including indices. The broker also notes traders may experience other changes to trading conditions such as high volatility, low liquidity and wider spreads. “We urge traders to take into account, that abnormally low liquidity and wide spreads increase the risk of slippage. Please, consider these circumstances when planning their trading activities for the following week,” FXOpen said.
FXOpen will revert to the usual margin requirements on November 14, at market open.
Earlier on Wednesday Forex.com hinted at possible increase of margin requirements around the US presidential election, without providing further detail at this stage.