EU and Australia-regulated forex broker XM changed on Monday the margin requirements for the Swiss franc (CHF) forex pairs. The broker has halved the margin on such pairs to two times the margin set as per account leverage.
The new margins come into effect as of Monday and apply to both new and existing positions.
The previous margin was four times the margin set as per account leverage.
The move comes on the back of possible action on part of the Swiss National Bank (SNB). The bank is expected to raise interest rates which have reached a record-low negative level.
XM, formerly known as XEMarkets, is a trading brand of Trading Point Holdings. The broker is licensed by the Cyprus Securities and Exchange Commission (CySEC), the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). It is also awaiting licensing from the Financial Services Board (FSB) of South Africa.