Forex brokerage IG Group (LON:IGG) said it is lowering the initial margin rates for the Japan 225 index, spot gold and some forex pairs. The decrease, however, does not necessarily mean so, as, at the same time the broker is changing the tiering structure on some instruments.
The initial margin rate for the Japan 225 index will decrease from 0.75% ti 0.5% and the initial margin rate for Spot Gold will decrease from 0.7% to 0.5%, respectively. IG will also lower the initial margin rates on a number of forex pairs, but did not specify which.
In the message to its clients, the broker says that the tiering structure for the majority of indices and forex markets will also change. This means that while initial margin rates may not change, the client margin requirement could still increase due to changes in tier sizes.
Changes to margin rates and tiers are the same for daily funded bets and futures bets. The changes come into effect on May 7, Sunday.
According to IG, when the changes come into effect, the margin requirements on any open positions on the affected markets will increase. Non-guaranteed stops will not reduce the margin requirement in this period. The changes will also affect working orders, options, and positions opened via MetaTrader 4.
IG is a financial services provider with over 40 years’ trading experience. It was the first company to launch spread betting, and it also offers trading in contracts for difference (CFDs), forex, stocks, bonds, binaries, and Bitcoin. It is primarily regulated by UK’s Financial Conduct Authority (FCA), but its subsidiaries have licenses from the authorities in Australia, Japan, South Africa, UAE and Singapore.