Another set of forex brokers has announced upcoming changes to the trading conditions in the period before and after the approaching US presidential elections. These are Trading 212, LiteForex, Z.com Trade and GKFX. In the meantime, RoboForex and FreshForex will apply no changes. Please read on to see what the changes are and what instruments they affect.
Meanwhile, IFC Markets said it will change on 8 and 9 November margins for some instruments, but did not disclose which ones. In addition, FxPro said it may change margin requirements across several instruments, without providing information as to what instruments could be affected or what period it referred to.
RoboForex and FreshForex to keep trading conditions to normal
While the rest of the brokers compete in being precarious and limiting risk, RoboForex and FreshForex both said they will not change margins or any other conditions. However, the brokers alerted financial markets may suffer from the sharp increase in volatility and reduction in liquidity in the period around the US elections.
Trading 212 to set temporary margins for metals, indices
From 4 November, multi-regulated forex broker Trading 212 will change margins for gold and silver to 1% and for all indices, either futures or spot, to 2%. Margins will be resumed to normal after the election results.
LiteForex may hike margins fivefold
LiteForex announced it may increase margin requirements in the period 7-11 November by five times on all trading accounts. It explained that the measure should be needed because of the increase in margin requirements of the majority liquidity providers and most of the large banks.
Z.com Trade’s new conditions affect all forex pairs
Z.com Trade, a UK broker part of Japan’s GMO Click group, will set new margins from 7 November until 11 November, inclusive. During that period, all forex and spot metals will be traded with a minimum margin requirement of 2%. All stock indices and energies and soft commodities will have a temporary margin of 4%.
GKFX’s new temporary minimum margins reach 8%
The broker will set trading in USD/MXN, USD/DKK, USD/RUB and USD/ZAR to close-only mode from Friday 4 November (1700 UK time). In addition, GKFX will also raise the margin for EUR/USD to 0.5% and set temporary for the following USD pairs:
- 1% margin – GBP/USD, USD/JPY
- 2% margin – USD/TRY, USD/CAD, USD/CNH, USD/NOK, USD/SEK, USD/SGD
- 4% margin – USD/CHF, USD/CZK, USD/HUF
- 8% margin – USD/PLN
The US presidential elections will take place on 8 November, 2016. The main candidates to win the elections are Democratic nominee Hillary Clinton and her Republican rival Donald Trump, against whom many high-profile republicans have turned their backs on due to the numerous scandals and blunders in which he has been involved. Pre-election debates are already affecting the markets. We’ve seen high volatility in many sectors of the financial markets.
A number of other forex brokers will take precocious measures to mitigate the risks. FXCM, Forex Club, Vantage FX, Dukascopy Bank, MTBankFX , Alpari, IG Group, CapitalIndex, Saxo Bank, OctaFX, Hantec Markets, London Capital Group (LCG), and Blackwell Global .Meanwhile, Forex.com, and FXOpen have said they have not introduced margin changes, but it is most likely they will in the near future.
In addition, forex broker MaxFX announced a 50% bonus (up to 5,000 base currency units) on client deposits of at least 200 base currency units. Swissquote Bank launched baskets with forex instruments that it expects will be most highly affected if either Clinton or Trump wins. It has also made available to clients a predictive analytics tool to facilitate their trading choices concerning instruments potentially affected by the outcomes of the US elections.