Multi-regulated broker Pepperstone has announced it’s updating its margin requirements for clients using MT4 and MT5 accounts. The changes affect European clients only and do not apply to those using cTrader. The new rules will come into effect on June 5th, 2021.
New Margin Requirements
In line with an email sent to European clients, the broker’s retail traders will need to hold at least 50 percent of the hedged portions for any instruments. The change will affect all those onboarded with the broker’s FCA-licensed entity. It is not yet clear whether the new rules will apply to other entities under the Pepperstone umbrella. It’s also worth reiterating that clients using cTrader are not subject to the changes.
The move is designed to protect traders from accumulating large losses. Pepperstone is not alone when it comes to introducing new conditions amidst a particularly volatile year in the financial markets. Both regulators and trading operators are keen to ensure retail traders are managing risk appropriately.
Pepperstone is an Australian-based broker offering an extensive list of products, from forex and stocks to cryptos, precious metals and softs.