RECOMMENDED FOREX BROKERS
Do not invest more money than you can afford to lose.
The Capital Markets Board (CMB) of Turkey announced on Friday it has made regulatory amendments to the financial and ancillary service regulation, with which it restricts retail leveraged trading to investors with a deposit of at least TRY 50,000 (about $13,500), or the equivalent in a foreign currency. In addition, the regulator has lowered the maximum margin rate available for retail forex traders to 10:1 from 100:1.
Brokers can offer higher leverage only when clients request this in a written form.
The CMB has given market participants a transition period of 45 days, in which to implement the new regulatory rules and to make sure open positions confirm with the new laws. The regulator, however, redeemed its right to change leverage on an asset basis when deemed necessary.
The new rules aim to prevent investors from taking high-risk decisions associates with the use of high leverage, according to the CMB notice.
In January, the Turkish watchdog required local retail forex brokers to offer a leverage of up to 100:1 to traders who have deposited at least TRY 20,000, and a maximum 50:1 for those with less than TRY 20,000 in their accounts. However, now it has further reduced the rates, making forex trading less attractive for most investors.
Since August 2011, after the CMB introduced regulatory amendments, forex brokers are required to have a Turkish license if they want to operate in the country. There are about 40 licensed brokers in the country, mostly local brands, but also international entities such as Saxo Bank and XTB.