Retail traders on Pepperstone’s MT4/MT5 platform will now have to post a margin of 50% on their hedge portions.
Pepperstone is a forex and CFDs broker that is regulated and licensed in multiple jurisdictions. The firm has recently changed its trading rules and especially in the section of margin requirements. According to an email sent by the firm to its clients in Europe, retail traders will now have to hold around 50% of the hedged portions of nay trading instrument.
Not all traders are affected
The proposed changes will only affect the traders who are holding MetaTrader 4 and MetaTrader5 accounts. The changes are expected to take effect on June 5.
In the email, the company stated that “We’re changing the margin requirements for hedged positions on our MT4 and MT5 platforms.” “As a retail customer, you will be required to post a margin of 50% on the hedged portion of any instrument.”
The firm also clarified that the traders who were operating from the cTrader trading platform would not be affected by the change.
The firm also added that “For cTrader, there will be no change to your current trading conditions, where total margin requirements are equal to the maximum margin requirements, for all positions of the relevant instrument symbol.”
Expanding to Global Markets
The headquarters of Pepperstone is located in Melbourne, Australia. The firm offers a wide range of trading services related to commodities, forex, stocks, and a wide range of other assets.
Besides, the firm also operates in a market that is heavily regulated. It holds several licenses that enable it to operate in several jurisdictions. Pepperstone is among the few brokers that offer regulated services in Kenya.
Just like other firms, Pepperstone had to seek additional regulations after the Brexit deal was finalized. The firm obtained a license from the Cyprus Securities and Exchange Commission (CySEC) and another license from BaFin, the financial markets regulator in Germany.
The new margin requirements set by Pepperstone have been targeted to the clients regulated under the UK’s Financial Conduct Authority (FCA). However, it is not clear whether the firm will also update the margin requirement terms for clients regulated by other bodies.
However, even if the other entities will be currently exempted from the update, their terms will also be changed in the future as the broker seeks to ensure trading uniformity across all its regulated markets.