The Cyprus-regulated unit of online forex broker RoboForex has introduced a negative balance protection and has terminated all bonus programs, corresponding to the latest regulatory amendments introduced by the Cyprus Securities and Exchange Commission (CySEC), the broker said.
Clients’ accounts have been added negative balance protection, regardless the total amount of compensation paid to the client.
All bonus programs, which motivated clients to make trading volume, have been closed. Moreover, the “Increased Leverage” program is no longer offered for newly opened accounts. Still, the broker has launched new incentive promotions – Tradable Protection and Welcome.
Under the Welcome program, new clients receive $30 extra funds when they deposit $10 to their trading accounts for the first time. They cannot withdraw the funds, but can use them to earn profit, which can be withdrawn.
The Tradable Protection program is also aimed at new clients. It is available for Fix and Pro trading accounts on the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The broker secures up to 50% of traders’ first deposit, regardless of the funds’ amount. Clients who deposit up to $300 receive security for 25% of the amount, while for deposits exceeding $300 the protection is 50%. However, there is a limitation on the protection of $3,000 for traders who fund one account and $6,000 if the accounts are more.
The broker has also made some amendments regarding leverage. It has altered the rules for providing increased leverage to inexperienced traders.
“By making the above-mentioned changes in its daily activities, the Company shows intentions to comply with the European Law and follow the regulator’s orders,” RoboForex said.
Last year, the CySEC altered forex and binary option regulations, making it harder for brokers to meet its requirements. In November it announced the ban of bonuses as a measure to attract clients and the introduction of lower default leverage cap (50:1) for forex and contracts for difference (CFDs). For less experineced traders, the cap will be lower (20:1). The changes were triggered by the recommendations and guidelines of the European Securities and Markets Authority (ESMA) from mid-October in regards to forex and binary options regulation. Although the new rules were approved months ago, they are coming into effect now.
Lately, several other CySEC-regulated forex brokers announced changes to their trading conditions, prompted by the new regulatory rules. These were Exness, HotForex, ActiveTrades, VinciCM and Invest.com and Alfa-Forex.
RoboForex, headquartered in Cyprus’ Limassol, is a forex brokerage group with representative offices globally. It offers trading in forex, contracts for difference (CFDs), and metals. The group used to provide binary options instruments under the cap of its Cyprus-regulated unit, but it discontinued the service in early June last year.
The brokerage consists of the holding company RoboForex Financial Group, and its units Cyprus-regulated RoboForex CY Ltd., New Zealand-based RoboForex LP., and Belize-regulated RoboForex Ltd., which until recently was known as RoboTrade Ltd.